MICHIGAN-BASED MATERIAL HANDLING EQUIPMENT MANUFACTURER

MICHIGAN-BASED BULK MATERIAL HANDLING EQUIPMENT MANUFACTURER

This nearly 30-year-old company manufacturers material handling equipment used in many industries with customers globally. They provide smart solutions for filling, weighing, conveying, unloading, mixing, dumping, sorting, and custom applications.  Their customers include OEM’s, system integrators, process engineering firms, and many other end use customers. Superior customer service, engineering product innovations, and building smart systems for companies to operate more efficiently, has allowed the Company to increase market share. The large variety of industries, markets, and customers they currently serve provide solid growth opportunities, and they have many more areas to expand into using their excellent reputation as a foundation.

With the owner approaching retirement and prepared to sell, this Company presents an opportunity to acquire a healthy and growing Company, to operate independently or merge with a buyer’s existing equipment design and build operation.

GROWTH OPPORTUNITIES

Facility Capacity – The Company operates from a modern plant built to house this Company’s manufacturing and office operations, a plant that has space for 30 percent expansion in manufacturing and sales.

Excellent Local Economy – The Company is located in one of the Midwest’s economically healthiest regions, a region that hosts a diverse range of manufacturing markets.

Market Potential – The Company is positioned to grow through advanced design innovation to meet new customer and changing manufacturing needs as well as by expanding sales in currently underserved regions.

INVESTMENT HIGHLIGHTS

Customer Loyalty – An emphasis on service, reliability and honesty, along with deliberate, accurate manufacturing processes, has generated a strong positive reputation and high levels of customer loyalty.

Diverse Customer Base – The Company has a strong presence serving a diverse range of manufacturing market segments across the country, providing protection from economic cycles in individual industries or geographic regions.

2017 Revenue: $5,162,000

2017 Adjusted EBITDA: $477,500

 

DESIGN AND MANUFACTURER OF AUTOMATION AND CONTROL SYSTEMS

DESIGN AND MANUFACTURER OF AUTOMATION AND CONTROL SYSTEMS

This Midwest-based company specializes in taking control or automation concepts and producing completed products including software packages, electrical schematics, full parts lists and a final electrical assembly for any industrial application. The Company has a team of highly-skilled engineers who can develop custom solutions for a variety of customers in almost any industry. The founder has a team in place that allows him to step away from the day-to-day activities of the Company. The Company has benefited from low overhead and high profit margins, as well as repeat business from loyal customers. As the demand for more computer-controlled systems and automation increases, the Company is well-poised for growth. Over the years, the Company has built a strong relationship with many of its customers which can be leveraged for additional future projects.

GROWTH OPPORTUNITIES

Demand Across Industries – The industrial automation industry is seeing remarkable growth as manufacturing in the United States grows and also seeks cost-saving automated manufacturing processes in multiple industrial sectors.

Room for Growth – The current facilities are available for lease and have capacity for significant sales growth.

Expanded Marketing – The Company currently has no marketing strategy, with 100 percent of business generated through word of mouth. Outside sales efforts to current and possible new customers has the potential to double sales, particularly to businesses across North America outside the Midwest market.

INVESTMENT HIGHLIGHTS

Full-Service Approach – This Company offers multiple ways to engage with customers – working with a manufacturer, alongside a mechanical engineering company or by being an invisible partner to customer companies that need a behind-the-scenes, complete line of service.

Broad Customer Base – The Company works in multiple industrial sectors, helping it avoid manufacturing cycles and economic shifts that have hurt similar companies tied to one industry.

Transaction Closed

March 2018

3 Year Average Revenue: $4,310,000
3 Year Average Adjusted EBITDA: $1,042,000

YTD as of 8/31/17 Revenue: $3,420,000
YTD as of 8/31/17 Adjusted EBITDA: $1,124,000