MICHIGAN-BASED VEHICLE SEATING PRODUCT LINE

by | Jun 6, 2018 | Manufacturing

MICHIGAN-BASED VEHICLE SEATING PRODUCT LINE

A Michigan-based manufacturer is offering for sale an OEM product line that has produced consistent sales and profits. The product is a federally-certified seating system component for a specialized market. A single customer currently accounts for steady year-over-year sales. The product offers untested potential for growth through marketing, particularly for a buyer with existing sales efforts in a related field. As the current owner moves to focus on other innovations, this product line is an excellent purchase opportunity for a manufacturer with existing capabilities in a related field or one looking to enter the vehicle seating field with a product that has steady sales and healthy margin.

GROWTH OPPORTUNITIES

Expanded Sales Through Marketing – A broader market has not been tapped; a company with an existing sales team could readily add this product to its marketing to reach new buyers.

Growth in Sales of Specialized Market – Current economic and demographic trends are driving record sales and projected growth in the end-product vehicles in which this product line is utilized.

INVESTMENT HIGHLIGHTS

Consistent Sales – This product is an essential component in the current sole customer’s production. Sales to that customer have been consistently strong the past five years.

Portable Turnkey Production – All tools, fixtures and process equipment for production are available and easily transported to the buyer’s facility. Production can be accommodated in as little as 2,500 square feet and with two dedicated employees. Vertical integration of component manufacturing of over $350,000 consisting of stamping, welding and roll formed components.

Limited Potential Competition – Tooling costs and product certification requirements present high barriers to entry for any would-be competitor in this limited market.

The product line consists of steady volume production with a 5-year average of approximately 8,150 units/year at roughly 700 per month. Nearly 100% of the sales are to one long-time sales channel within the RV seating industry. The product is a complex, high strength, tight tolerance mechanism with six axis articulation, which can be used as a valuable sales tool for value added work. Currently, the machining, welding, and roll-forming are outsourced, and the two dedicated employees provide value-add assembly at 0.46 hours per adjustor. Two operators can build, test, and pack 35+ units per 8-hour shift. All of the tooling is currently owned by the Company and is valued at approximately $1,000,000. Although not patented, the product line is protected because the tooling is owned by the Company, creating a high barrier to entry for a competitor.  The product line also must pass three safety tests of the National Transportation Safety Board (NTSB).

2018 Product Line Forecast:                          $1,382,550

2018 Product Line Gross Profit Forecast:      $481,111

 

Non-Disclosure Agreement

MICHIGAN-BASED LUMBER AND HOME IMPROVEMENT COMPANY

by | May 18, 2018 | Completed, Manufacturing

MICHIGAN-BASED LUMBER AND HOME IMPROVEMENT COMPANY

Founded decades ago, our client is a full service lumber company with multiple locations. They specialize in a number of services, including engineered wood products, home design services, specialty mill-work, and post frame building packages. There are separate divisions dedicated to contractor needs and home design planning services, also a showroom providing flooring, cabinetry and counter tops.

Their customer-centric philosophy continues to fuel growth and loyalty from the large customer base, reaching Michigan, Indiana, Ohio, Illinois, and other states. This friendly and knowledgeable staff has allowed them to continue growing during the infiltration of the national “Big Box” chains

GROWTH OPPORTUNITIES

Strong Local Economy – Unemployment in the Company’s market area is among the lowest in the state, while wages continue to increase and interest rates remain near record lows. Both residential and commercial construction are projected to continue to grow. With proper investment in marketing, growth of sales should follow growth in the local economy.

INVESTMENT HIGHLIGHTS

Community Institution – This Company has been developing its brand in its home market for over half a century, emphasizing good prices and local customer service. The Company has a customer list of approximately 4,000 accounts, including a high rate of repeat customers.

Strong Workforce – The Company has approximately 100 employees with average tenure of more than 15 years, including talented key employees who have received awards for interior and home design. These employees bring a strong base of community knowledge and history with customers.

Recent History of Sales Growth – Since coming out of the recession, the Company has seen five years of steady sales growth, with sales nearly doubling from 2010 to 2015.

2016 Revenue: $46,100,000

2016 Adjusted EBITDA: $2,190,000

WEST MICHIGAN-BASED DIGITAL STUDIO

by | Apr 23, 2018 | Service

WEST MICHIGAN-BASED DIGITAL STUDIO

This Company was among the early adopters who led the way in corporate web design and development services as well as mobile and web e-commerce applications. It has seen steady growth in sales thanks to evolving skill levels and a strong reputation based on an extensive and diverse portfolio of work. The current hands-on ownership team is looking to retire but is available to provide transition support for up to a year. This Company provides an excellent opportunity for an experienced manager wanting to operate their own business or for a similar enterprise seeking growth through acquisition of a strong staff and well-established customer base.

GROWTH OPPORTUNITIES

Expanding Demand – The evolving digital design industry continues to be in strong demand as business and industry shifts to e-commerce and web-based communication and customer service. The Company has a strong regional presence and also serves national and international clients.

Boost Marketing – Current sales and marketing efforts are minimal, with word of mouth generating most sales. Adding a sales person and marketing efforts built on the Company’s strong reputation could provide an excellent return on investment with growing sales.

Facility Space – Current offices, leased from a related third party, could be included in the purchase. Offices have about 30 percent or more of underutilized space depending on the re-configuration, offering potential for staff expansion to service significant levels of new sales.

INVESTMENT HIGHLIGHTS

History of Expertise – The Company’s portfolio is extensive as well as diverse, reflecting its long track record as well as its reputation for quality work. In addition, the Company’s skill set gives it an advantage over both competitors and in-house providers, including the ability to provide expert service at less cost to clients than if they did the work in-house.

Loyal Customer Base – Quality work and flexible customer service has developed a high retention rate among major clients, many of whom have been Company customers for five or more years.

2018 Revenue:                        $ 1,668,000

2018 Adjusted EBITDA:          $ 295,000

    

Non-Disclosure Agreement

AUTOMATED ASSEMBLY AND TEST EQUIPMENT MANUFACTURER

by | Apr 18, 2018 | Completed, Manufacturing

AUTOMATED ASSEMBLY AND TEST EQUIPMENT MANUFACTURER

This Michigan-based Company specializes in the development and manufacture of custom-built automated machines for assembly and test applications. Its products are used primarily in the automotive manufacturing market, although many opportunities exist for the Company to pursue customers in adjacent industries. The Company’s loyal customer base is primarily based in the United States, with significant installations in various international markets. The Company consistently generates repeat business due to long-standing customer relationships. The Company has a strong backlog for future orders. Management is projecting continued growth and increasing profitability in the future.

GROWTH OPPORTUNITIES

Industry Diversification – The Company currently has capability to expand its markets by providing additional services beyond its core business. Capability also exists to expand product offerings further into manufacturing and testing applications. This additional growth could lead to significant synergies for a strategic buyer. Geographic expansion would also yield additional sales.

INVESTMENT HIGHLIGHTS

High Quality – The quality reflected in its products is embedded in the Company’s culture and its dedicated team of employees. The Company’s expertise in producing high quality products, along with proven performance in the areas of efficiency and reliability, have earned the Company a solid reputation in the industry.

Skilled Workforce – The Company boasts a loyal, long-term workforce and is well positioned to meet the changing demands of the global marketplace.

Customized Solutions – The Company provides customized products to meet each customer’s application requirements. Its solution-oriented approach has led to a high level of repeat and referral business. The vast majority of Company work is with repeat customers.

2016 Revenue: $10,900,000

2016 Adjusted EBITDA: $1,500,000

MICHIGAN-BASED MATERIAL HANDLING EQUIPMENT MANUFACTURER

by | Mar 19, 2018 | Completed, Manufacturing

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