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 MANUFACTURING MACHINERY DESIGNER/BUILDER

Midwest Manufacturing Machinery Designer/Builder  

This designer and builder of custom machines and welding technologies specializes in assembly, test, welding and turnkey systems to meet the unique needs of manufacturers. It serves OEM, Tier 1 and Tier 2 suppliers in industries such as automotive, aerospace, appliance, chemical, recreational and commercial and household products throughout the nation and world. Its expert teams provide design, engineering, build and testing capabilities – creating equipment and refining processes to help manufacturers run at peak efficiency. The Company has positioned itself to provide an impressive variety of products and services, with a foundation of designing and building industrial machinery that is safe, trouble-free and highly-flexible. It also offers service, support and parts for the machines it produces. The Company is currently operating below capacity because of the COVID-19 pandemic, and the owners are looking at various opportunities to expand and enhance their business. 

This designer and builder of custom machines and welding technologies specializes in assembly, test, welding and turnkey systems to meet the unique needs of manufacturers. It serves OEM, Tier 1 and Tier 2 suppliers in industries such as automotive, aerospace, appliance, chemical, recreational and commercial and household products throughout the nation and world. Its expert teams provide design, engineering, build and testing capabilities – creating equipment and refining processes to help manufacturers run at peak efficiency. The Company has positioned itself to provide an impressive variety of products and services, with a foundation of designing and building industrial machinery that is safe, trouble-free and highly-flexible. It also offers service, support and parts for the machines it produces. The Company is currently operating below capacity because of the COVID-19 pandemic, and the owners are looking at various opportunities to expand and enhance their business. 

GROWTH OPPORTUNITIES

On-site service – Company has seen rising demand for technical service assistance and automation of welding equipment at customers’ locations. 

Increase sales/marketing efforts – Future growth is possible through addition of qualified and experienced sales and technical personnel and/or manufacturing sales representatives to help promote the Company’s resources and talent with current and potential customers. 

INVESTMENT HIGHLIGHTS

Broad base of products, services – Through its own innovation and strategic acquisitions and partnerships, the Company offers an impressive variety of products and services to the manufacturers it supplies. 

 

Unique offerings – Its specialized equipment and patents to develop innovative applications for all industries distinguish the Company from its competitors. 

 

Customer diversity – Base of more than 200 customers is balanced among multiple industries and broad territory – international, national, regional and local – ensuring the Company is not dependent on one particular industry or geographic market. 

 

Talented, stable workforce  Management team and other employees have long tenure with the Company and are dedicated to providing quality customer service. 

 

 

2016 

2017 

2018 

2019 

2020 

Revenue 

$4,800,000 

$3,700,000 

$5,500,000 

$7,300,000 

$5,600,000 

EBITDA 

$500,000 

$165,000 

$425,000 

$840,000 

$700,000 

 

MIDWEST-BASED SPECIALTY PIPING COMPANY

Midwest-Based Specialty Piping Company

This specialty piping Company designs, fabricates, installs and services process and industrial piping systems for the food and beverage, chemical, petroleum, plastics, packaging, textile, pulp and paper, automotive, steel, and pharmaceutical industries in the Midwest. It provides design, construction and installation of such systems and customer service beyond project completion. The Company’s earned reputation for quality workmanship, safety, reliability, trust and experience has prompted its customers to rely on them as a single source for all piping needs, and led to an enviable client retention rate, with some relationships extending 20-25 years. Its highly qualified and certified workforce, outstanding safety record and institutional expertise have the Company poised for continued growth.

GROWTH OPPORTUNITIES

Extending reach – The company’s robust customer base is within a two to three hours radius, with
opportunities to increase existing services as well as expansion of the sales territory.

Potential new markets – There are options to partner with other general contractors and quote “piping only”
projects as well as installation opportunities for temporary cooling/heating equipment and piping

Growth in chemical industry – There has not been substantial infrastructure improvements within the
chemical industry in the past few years, and there are plants that are expected to have significant increases
in capital expenditures to address these improvements.

INVESTMENT HIGHLIGHTS

Financing capability – Because of its strong financial history and past performance, the Company is able to obtain bonding for multi-million-dollar projects.
Skilled workforce – Company employees are highly skilled, experienced, and certified – in part, due to a commitment to ongoing, mandatory job-specific training, resulting in long term employee tenure.
Safety is a priority – The importance of safety permeates the Company’s culture, resulting in an enviable safety record. Company employs a safety director and contracts with an outside firm for audits and training. Their Experience Modification Factor has consistently been well below 1.0 year over year.
Customer service – Project managers/estimators have more than 100 years of combined experience, and each project is assigned a project manager who stays with the customer from start to finish, minimizing communication errors and delays.

3-Year Average Revenue:         $6,300,000  

3-Year Average EBITDA:           $750,000                       

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