MIDWEST-BASED INDUSTRIAL DESIGN & AUTOMATION SYSTEM INTEGRATOR

by | Feb 27, 2021 | Completed, Manufacturing

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

 

Non-Disclosure Agreement

MIDWEST MANUFACTURING MACHINERY DESIGNER/BUILDER (2199)

by | Feb 19, 2021 | Completed, Manufacturing

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 

 

Non-Disclosure Agreement

MIDWEST-BASED SPECIALTY PIPING COMPANY (NVC2195)

by | Feb 9, 2021 | Completed, Manufacturing

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:         $6,100,000
3-Year Average EBITDA:           $990,000
TTM Revenue:                             $7,450,000
TTM EBITDA:                               $1,400,000                       

Non-Disclosure Agreement

MICHIGAN-BASED SPECIAL TOOLING AND PATTERN FABRICATOR

by | Oct 5, 2020 | Completed, Manufacturing

MICHIGAN-BASED SPECIAL TOOLING AND PATTERN FABRICATOR

This is a well-equipped special tooling and pattern fabrication operation with an excellent track record of serving industrial OEM and tier-two manufacturing clients with quality and innovation. With extensive facilities, best-in-class equipment and a highly trained workforce, the Company ranks at the top of its industry. It is recognized by customers and competitors as an innovator. Its cost-effective alternatives to traditional methods of manufacturing have driven down customer cost and turnaround time. The Company has served for decades a national market comprised of a small number of well-known brand names. High performing products coupled with excellent customer service have resulted in outstanding customer loyalty along with reliable revenue volume and margins. The owner is looking to retire and has a strong team in place. He is interested and able to assist in the transition to a financial or strategic buyer.

GROWTH OPPORTUNITIES

History of Innovation – The Company has a record of innovation, introducing new methods of manufacture that reduce cost and time to market while preserving and improving quality.

Opportunity to Add Customers and Markets – Customer retention and expansion has occurred without a sales department. New customer development could propel growth in existing and new markets.

Lights-Out CNC Manufacturing – The business already operates some CNC machining without direct operator supervision. A manufacturing strategy could be developed to leverage current equipment and facility infrastructure further without increasing direct variable labor cost.

INVESTMENT HIGHLIGHTS

Trusted Brand and Reputation – The Company enjoys an impeccable reputation with a loyal and diverse customer base. A buyer focused on customer service can see a solid stream of recurring business.

Prepared for Transition – The owner has been preparing for transition by delegating responsibilities and growing the capabilities of team members, continuing a tradition of developing employee skills. This included hiring a General Manager in 2016.

Property Options – The facility is owned by a separate related entity with opportunity for lease or sale.

3 Year Average Revenue: $3,000,000
3 Year Average EBITDA:   $400,000

Non-Disclosure Agreement

MICHIGAN LAMINATED WOOD PRODUCTS MANUFACTURER

by | Aug 25, 2020 | Completed, Manufacturing

Michigan Laminated Wood Products Manufacturer

This long-established Michigan company specializes in CNC machining of composite wood, plastics and nonferrous metals to produce high-quality decorative seamless 3D laminate products for a wide variety of applications including hospitality, furniture, store fixtures, medical, auto and architectural components. Its skilled and
experienced staff turns creative, cutting-edge designs into exceptionally beautiful and functional products. The Company has the expertise and equipment to produce components in a wide variety of designs in virtually any size. It provides its customers total fulfillment, including machining, laminating, assembling, packaging and shipping. Quality control is well-established, with prior ISO certification and complete part traceability of orders. 

GROWTH OPPORTUNITIES

Kick-starting sales – The Company currently is operating well under capacity as its marketing relies primarily on their reputation and current clients. Creating a sales operation to more actively pursue new business and leverage the Company’s sought-after capabilities could produce high rewards.

New products in the pipeline – The Company currently has new proposed projects under way with current and prospective customers

INVESTMENT HIGHLIGHTS

Uncommon expertise – This company has rare capabilities within its industry, and little competition for its more advanced services. Potential competitors are discouraged by the complexity of mastering the processes and techniques, some of which are proprietary to the Company.

Experienced staff – Solid and long-tenured management team, most having a decade or decades with the Company.

Established customer base – Customers include some of the bigger names in their industries. Most are repeat customers and have been with the Company five years or longer. Very seldom is there a one-time customer or order.

Year                                  2018              2019            2020            2021             2022

Sales                           $2,720,000  $2,130,000  $1,160,000  $2,230,000  $2,200,200

Adjusted EBITDA       $140,000     ($10,000)    ($30,000)    $210,000     $220,000

An appraisal as of December 2019 gives fair market value of machinery and equipment of $772,400

Non-Disclosure Agreement