PLASTIC COMPONENT FINISHING COMPANY
MICHIGAN-BASED AIR FILTRATION EQUIPMENT MANUFACTURER
This industrial equipment manufacturer in the air filtration sector is a well-established Company that has been thoroughly restructured with new manufacturing technology and management practices. The Company develops, manufactures, markets and sells a line of equipment used in nearly every manufacturing setting. The Company’s product line includes proven manufacturing support equipment with strong brand recognition. Current ownership has completed an overhaul of company marketing, added product lines, boosted engineering capability and installed lean manufacturing processes. Management has been restructured with key personnel to allow hands-off operation by ownership, or to allow a new owner to focus on growth and development of significant untapped potential in the Company.
Strong and Expanding Product Line – The Company product line has been expanding, including a patent pending product not yet in production. New product and marketing initiatives are already growing sales.
Broad Market Potential – The Company supplies equipment needed by most manufacturing operations, providing an opportunity to grow market share and to participate in current domestic and international manufacturing growth.
Facility Space – The Company’s current facility, available in the purchase, has room to support manufacturing growth for double current sales.
Extensive Sales Network – The Company has a nationwide distribution through an established sales network to both end-user customers and OEM manufacturers who integrate Company parts in their own products.
Strong Market Identity – The Company sets itself apart from larger, global competitors with quality products and proven designs, competitive pricing and a service-oriented approach to meet individual customer needs.
2017 Revenue: $4,200,000
2017 Adjusted EBITDA: $590,000
3 Year Average Adjusted EBITDA: $675,000
WEST MICHIGAN-BASED CONCRETE SUPPLY COMPANY
This West Michigan concrete supply business sets itself apart with its wide range of concrete and concrete-related products. The Company also provides crushed concrete, sand and stone aggregates. With an emphasis on high quality products, developed through a focus on concrete technology, and high levels of customer service from expert employees, the Company has a long history of growing sales and profitability. With current ownership ready to retire, this purchase offers an excellent opportunity for a new owner to step into a successful operation or for an existing company to grow market area and customer base.
High Product Demand – A very strong market for residential, commercial and agricultural construction in the region provides the opportunity for continued growth in sales of concrete and aggregates.
Room for Expansion – Current Company facilities offer room for significant expansion of sales without major capital outlay. Equipment and facilities are updated and efficient.
Strong Market Presence – The Company offers more products and better service than regional competitors, along with top quality concrete, and has become a one-source, efficient supplier of multiple products to contractors.
Continual Product Improvement – The Company has developed its concrete product through research and development over four decades and continues to evolve its products with the latest technology.
Strong Customer Base – The Company enjoys a very high level of repeat customers, with few sales requiring bids. A high percentage of customers have purchased from this Company for more than a decade.
2018 Revenue: $4,720,000
2018 EBITDA: $690,000
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.
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.
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
MIDWEST-BASED DOCUMENT SOLUTIONS COMPANY
Our client is a leading company in the field of providing document management solutions via document imaging services and secure document storage to a wide range of customers. The company benefits from recurring revenue generated by its long standing, contractual relationships with its clients. A 5-year contract was recently renewed with the company from one of its main customers. The Company brings a high level of expertise and wide array of specialized document solution services.
The Company presents a customer service oriented new owner the chance to continue a tradition of success.
Boost Marketing – The Company has had success with limited marketing but is currently developing strategies to tap the larger market of organizations who need to process ever-increasing amounts of information.
Increased Sales of Digital Services – The Company is well positioned to leverage its expertise to grow sales of digital services.
Expanded Sales Can Provide High-Margin Revenue – The Company has a large, fixed-cost investment in IT and security systems. New sales with minimal incremental costs provide the opportunity for high margin new revenue.
Established Company Limits Competition – New companies in the industry do not have the experience and technology to handle the high volume, breadth of capabilities and specialized services that this Company is positioned to process. The Company has a dedicated and knowledgeable management team, seasoned sales staff and a well-established reputation. Ownership is willing to work with a new owner to establish a transition time frame.
Forecasted 2019 Revenue: $6,500,000
Forecasted 2019 EBITDA: $1,400,000