Regarding that Manufact. Co for Sale

Well just received some additional info.  While its a long standing business – 40 years and seems to produce a viable product – I just don’t like the risk profile.  What I mean by this is that revenues are $2.4MM and earnings are $1.2MM.  Thats incredible – operating margins of 50% – wow!  But what if one major client goes bye bye?? $1.2MM would look like $600,000.  And the seller is asking 6x earnings or $7.2MM – I don’t think so!  When you have this type of risk profile no time to overpay.  Lets see what tomorow brings.

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