We visited a die casting company today, a competitor who called for help. They called yesterday to see if there would be any interest in buying them. We scheduled a time of 10:30 today for a visit.
We arrived at 10:20, the owner was not there yet. We saw the employees wandering around “trying to look busy”. They were wiping down die casting dies and checking threads on parts. There was not a die casting machine running or a furnace heated. We asked an employee if there was any production today? He indicated that one of the 400 ton die casting machines ran yesterday. We checked the furnace and it was cold… It has not been on for days. Then another employee told us that the Electricity was turned off and the gas was turned off and the phones were turned off.
Just then, the owner arrived. He was looking haggard. Our conversation was brief. He handed us a sales report for the first half of the year and a listing of his customers. His sales indicate less than half that of last year. He said he was interested in selling the assets of the company and to make him an offer. I made him an offer of the value I would place, based on other transactions I have been involved with. I gave it to him in writing with an expiration date. I also gave him a non-disclosure agreement.
The sad fact is he should have contacted me sooner. He is certainly beyond saving the company. He is “Past the Point of No Return”