BRANDED PRODUCT MANUFACTURER OF SPECIALTY TOOLS

Branded Product Manufacturer of Specialty Tools

This Company manufacturers a specific type of tool and sells it under its own trade name mostly online across the United States, wholesale and retail. The Company represents a successful blending of the old and new. Its well-recognized brand name dates back to the Company’s founding more than a hundred years ago, yet sales today are mainly through the most modern method – e-commerce. About 75% of sales come through Amazon and Big Box hardware and home improvement stores while 25% are direct sales to individuals, distributors, companies, government and schools. In addition to its longevity in the market, the Company distinguishes itself through customer service, quality and competitive pricing. The Company formerly manufactured its own products domestically, but now outsources that manufacturing overseas while still retaining ownership of its patterns. It maintains some 100 active customers, some of whom have been with the Company for decades. The current owners are looking to retire and are willing to assist new owners through a reasonable transition period, with the length and compensation to be negotiated. 

GROWTH OPPORTUNITIES

Expanded footprint – Sales territory, by choice, is currently limited to the United States. Business could go worldwide with new owners. 

Boosting revenue – Sales have risen steadily and could be increased further by expanding distribution territory, all leveraged with existing personnel. 

INVESTMENT HIGHLIGHTS

Strong reputation – The Company has built solid brand identification and loyal customer base over more than 100 years. 

E-commerce presence – Products are available through websites of the largest sellers of tools and hardware in the U.S. 

Supplier relationships – The Company has multiple suppliers in China and Taiwan, with one relationship dating back 20 years. 

Competitive pricing – Prices are maintained on the lower end of its market niche without sacrificing quality. 

 2020 Revenue:  $6,800,000  
2020 EBITDA: $1,500,000

EBITDA %: 22.58%
Industry Avg EBITDA %: 9.74%