WEST MICHIGAN MACHINE SHOP

West Michigan Machine Shop

This Company is a full-service, high-quality machine shop that builds a diverse range of precision machined parts. With expertise in CNC milling and lathing, the Company primarily works in the machine building, railroad, and industrial equipment industries, supplying OEM and secondary suppliers. Established in 1965, the Company has a history of years of consistent profitability, and positive cash flow as the owners built the business through an emphasis on quality work and close customer support. The Company also has a small welding department and supplies fabricated assemblies as well. This Company is ready to resume its growth under a new owner who provides machining leadership expertise and brings capital to invest in expanded production capabilities. The business was purchased from the company’s founder in 2002, and the current owner would like to retire.

GROWTH OPPORTUNITIES

Sales Investment to Utilize Capacity – The Company has sufficient space to more than double current
production. An investment in additional capital equipment, along with increasing support staff in product
estimating and sales could build on the Company’s reputation and boost sales to match the Company’s
production capabilities.

Expanded Product Line – A capital investment in new equipment to produce large parts could expand sales
with complementary product to add sales volume with new and existing customers.

INVESTMENT HIGHLIGHTS

Strong Reputation and Customer Relationships – Expertise and efficiency with attractive price points have developed long-term relationships with the Company’s larger customers, and have also led to referrals for new business opportunities.

Quality Staffing –
The Company’s top manager and its employees have extensive experience in the industry. Production staff is very experienced, with most of the workforce being with the company in excess of 15 years.

Expertise in Production
– As it has grown, the Company has focused on applying newer top-quality, wellmaintained equipment.

Make-to-order Specialty
– The Company’s focus on serving customers needing custom parts in small quantities sets it apart.

3-Year Average Revenue: $ 1,400,000
3-Year Average Adjusted EBITDA: $ 150,000

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%

MIDWEST-BASED PLASTIC INJECTION MOLDER

Midwest-Based Plastic Injection Molder

This Midwest-based custom injection-molding company manufactures plastic components for longtime, repeat customers in a diverse variety of industries, including the military. Its consistent investment in cutting edge manufacturing technology, exceptional focus on quality, ability to manufacture to tight tolerances and dedicated workforce have allowed it to attract a loyal customer base with virtually no sales effort beyond word of mouth. In addition to injection molding, it provides engineering assistance, insert molding and assembly. The Company has capacity for growth, which could be enabled by a greater focus on sales and marketing. Its long-term government contracts, IATF certification and record of customer retention – some for more than 15 years — make it an excellent investment opportunity.

GROWTH OPPORTUNITIES

Quality Achievements — Ability to manufacture to extra-tight tolerances, unwavering commitment to prevent manufacturing errors and detailed quality assurance process allow the Company to retain customers with highest quality standards.

Technology — Company has long invested in new technology, including robotics, which has enabled it to
maintain a lean operation with high efficiency and precision.

INVESTMENT HIGHLIGHTS

Increased Focus on Sales — Current sales/marketing strategy is limited to following up on referrals and providing current customer needs. A dedicated sales team, representing the Company in the field, is a clear opportunity for growth.

Capacity for Growth — Company has dedicated employees, room for growth and top-notch equipment but currently operates at less than full capacity.

Underutilized Specialties — Company could win new business by better promoting its CNC capabilities and other value-added opportunities

New Products — Several potential new products are currently under development to join the multiple products the Company already manufactures.

3-Year Average Revenue:         $3,500,000  

3-Year Average EBITDA:           $190,000                       

NATIONAL SPECIALTY CLEANING PRODUCTS MARKETER AND MANUFACTURER

National Specialty Cleaning Products Marketer and Manufacturer

This Company has nearly 30 years of experience manufacturing and marketing specialty consumer cleaning products which it sells to major national and regional retail chains as well as ecommerce accounts. Its products are available in a wide variety of wellknown home improvement, hardware and grocery stores throughout North America. The Company has numerous recommendations from major household appliance manufacturers. Since launching the business with a single, narrowly focused product, the Company has expanded its offerings and built on a 20 million plus sampling program and its strong brand to grow sales in a large and competitive industry.

GROWTH OPPORTUNITIES

New products in pipeline – Impressive array of cleaning products is growing as the Company continues research and development. Growing distribution Continuing growth in retail distribution of current available products.

Available capacity – The Company has the manpower, space and equipment to serve more customers which could be accomplished by greater emphasis on sales and marketing.

INVESTMENT HIGHLIGHTS

Dominating its niche – The Company’s main specialty cleaning products are top sellers in the major home improvement stores and other retail outlets where they are sold.

High profile online – Products have strong sales and reviews on Amazon.

Customer service – The Company supportits products with a tollfree consumer hotline Monday through Friday and 24/7 with an online link on website featuring cleaning tip sheets and highquality videos demonstrating how to best use its products.

TTM 11/30/20 Revenue: $8,000,000
TTM 11/30/20 Adjusted EBITDA: $1,050,000
TTM 11/30/20 Strategic Buyer EBITDA: $1,700,000

MIDWEST-BASED INDUSTRIAL DESIGN & AUTOMATION SYSTEM INTEGRATOR

MIDWEST-BASED INDUSTRIAL DESIGN AND AUTOMATION SYSTEM INTEGRATOR
This well-established, Midwest-based full-service industrial automation system integrator provides cradle-to-grave control systems from their three multi-state locations for a large,  diverse and loyal customer base in industries including automotive (OEMs and suppliers), food and beverage, medical device assembly, consumer goods,  power and utilities, water and wastewater, and other industries throughout the Midwest, the nation and world. This decades old Company has shown steady growth, overcoming multiple downturns in the overall economy, providing one-stop solutions to all automation system integration issues. In addition to design, build, commission and validation of controls systems and equipment, this Company also offers hourly project and engineering services. The majority owner is looking to retire and has strong management teams in place, who are also minority owners in the business.

 

GROWTH OPPORTUNITIES
Established presence and reputation – The Company has grown its customer base through deep relationships — some dating back to the Company’s founding — which produce steady, repeat business. That same emphasis on relationships has allowed it to keep a consistent supplier base.

Focus on quality and consistency – Its disciplined adherence to methods, practices and procedures gives this Company a competitive edge, providing consistent value to its customers. Its CSIA certification assures clients that the Company is professionally managed and focused on successful, long-term partnerships.

Investment in sales and marketing – This Company has grown its customer base largely through reputation for providing quality work. As demand for industrial automation continues to grow, greater emphasis on marketing and sales would more broadly leverage their strong reputation to boost sales.

INVESTMENT HIGHLIGHTS
Wide-ranging abilities – With this Company’s wide variety of markets served and its diverse employee skills, it can accommodate nearly any customer requirement for industrial automation systems.

Experienced, stable workforce – With an average employee tenure of six years, this Company has shown its ability to attract and retain quality talent. This saves the Company the expense of finding, training and onboarding new employees and enhances its ability to maintain long-term customer relationships.

Accounting system – A robust, mature accounting and ERP system keeps all necessary financial data visible to key managers and allows for timely review and closing of the books each month.

3 Yr. Average Revenue:                           $14,500,000

3 Yr. Average EBITDA:                             $1,200,000