Paul’s Fabricating & Machine Works

In May 2005, SBDC business advisor Michael North met with Bill and Susan to discuss the steps they should take in evaluating a business for sale, namely, the process of due diligence. Over the next several months, North helped Bill and Susan perform a thorough analysis of Paul’s Fabricating & Machine Works’ history, operations and finances. No stone was left unturned in determining an accurate price for the business and structuring the ‘right’ deal. Heeding North’s advice, Bill and Susan hired an accountant and an attorney to work out the details of a definitive purchase agreement. After the sellers agreed to provide partial financing, Bill and Susan approached Banco Popular and were approved for an SBA 7(a) loan.

Bill and Susan took over operation of Paul’s Fabricating & Machine Works in October 2005. The machining company is located at 7325 Interstate Hwy 37, Corpus Christi, Texas, and offers unique custom waterjet cutting, as well as manufactures flanges, large compressor parts, fittings and pipe for supply stores. As a result of the purchase, eight new jobs were created and 20 existing jobs were retained.

With no prior experience operating a machining business, Bill and Susan have gone through a great learning process. Their first few months were a struggle, as the machine shop was always a mess and there were posters on the walls that Susan found very offensive. Susan never mentioned anything about the posters, but as their leadership took root, the posters quietly came down and today the machine shop is clean as a whistle. Susan maintains they couldn’t have a better group of employees now, and takes every opportunity to brag about the team. Funny anecdote: According to Susan, one of the hardest things Bill had to realize was that - at work - she’s “not his wife.”