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

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

MICHIGAN LAMINATED WOOD PRODUCTS MANUFACTURER

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                        2014             2015            2016              2017             2018             2019

Sales                  $3,059,328  $3,276,733  $3,200,848  $2,949,225  $2,718,871  $2,127,774

Adjusted EBITDA $523,731     $526,922     $543,343     $359,895     $136,350    ($10,872)

An appraisal as of December 2019 gives fair market value of machinery and equipment of $722,400