MICHIGAN CONSTRUCTION SERVICES & AGGREGATES SUPPLIER

MICHIGAN CONSTRUCTION SERVICES & AGGREGATES SUPPLIER

This multi-faceted Company provides a complete range of construction aggregates and trucking services to general contractors, large highway projects, city and county road commission projects and homeowners. Ideally located to serve a booming regional construction market, the Company has seen steady growth. A long track record of dependable service generates significant word-of-mouth and repeat business. An experienced workforce and quality equipment give the Company a competitive advantage. With the owners ready to retire, this business presents an excellent opportunity for a financial buyer to acquire a profitable, growing operation or for a strategic buyer to expand by acquiring a fleet of well maintained equipment and experienced, dependable employees.

GROWTH OPPORTUNITIES

Expand Marketing to Grow Sales – The Company depends primarily on word of mouth to generate new business, with limited advertising. Markets and sales could grow through a comprehensive advertising campaign highlighting the Company’s well-regarded capabilities.

Investment in Facilities – Acquiring and opening new sand and gravel pits along with enhancing the sales yard design will provide opportunity for expanded sales.

INVESTMENT HIGHLIGHTS

Excellent Reputation – A long history of dependable, quality service, along with work on most of the area’s high profile projects, has given the Company a good reputation among area construction managers.

Quality Staff – Company employees have relatively long tenures, providing it an experienced workforce at a time when quality construction staffing is in high demand.

Ideal Location – The Company operates near a major metropolitan area, readily accessible to construction projects in any part of the region via nearby highways.

2018 Revenue:                                   $8,580,000

2018 Adjusted EBITDA:                      $1,730,000

 

MICHIGAN-BASED COMMERCIAL & INDUSTRIAL ROOFING COMPANY

Michigan-Based Commercial & Industrial Roofing Company

This Company has built a strong reputation through over fifty years of quality work over a large region of the state. An expert staff takes pride in installations and pays great attention to detail. The Company has earned a variety of industry accolades, including the Firestone Master Contractor award and the Inner Circle of Quality award. Sales include a mix of 60 percent new roofs and 40 percent reroofing in commercial and industrial settings, averaging about 100 projects a year. The Company’s expertise has built a strong base of customers and contacts among contractors and project managers. Owners are active in the business, but experienced employees continue smooth operations when owners are absent. This purchase opportunity offers a successful business to continue operating as-is or to grow with an investment in sales and staffing.

GROWTH OPPORTUNITIES

Strong and Expanding Product Line –  The Company has expertise in a broad range of roofing products, specializing in single ply roofing and able to deliver the newest concepts in roofing.

Broad Market Potential –  The Company currently does limited marketing, relying primarily on existing relationships with contractors and one long-term salesperson. A growth-oriented owner could expand with marketing to contractors and project managers as well as the general business community.

Facility Space – Land and buildings are not necessarily included in this offering, presenting an opportunity to relocate the business to a buyer’s site or another location to facilitate growth.

INVESTMENT HIGHLIGHTS

Strong Market Identity –  The Company is one of the longest operating roofing providers in its region and has developed a strong reputation for quality work, particularly with local contractors and project managers.

High Quality Staffing – A core of experienced roofing technicians, averaging more than 10 years with the Company, know how to install roofing as well as deal with customers. The Company’s work has earned top-level awards from industry manufacturers.

2018 Revenue:                            $6,500,000

2018 Adjusted EBITDA:             $690,000

MICHIGAN-BASED MECHANICAL CONTRACTOR

MICHIGAN-BASED MECHANICAL CONTRACTOR

This Michigan-based mechanical contractor has grown steadily for more than 25 years to produce an impressive resume of projects for prominent regional industries and health care systems. The Company provides commercial, institutional and industrial HVAC and mechanical systems, refrigeration, temperature controls, plumbing, welding, boiler and burner installations and repair. It specializes in healthcare and industrial process piping applications with design and build capabilities. The Company operates with a staff of dedicated skilled technicians that have the expertise to complete large projects. The Company has high customer loyalty, including having served its largest customers for decades, with some customer locations staffed on site. This purchase offers the opportunity to acquire a thriving, well-regarded mechanical contractor with a large and profitable customer base.

GROWTH OPPORTUNITIES

Improved Marketing – Company sales currently are primarily gained through word of mouth, with little to no marketing. Boosting marketing efforts and increasing the number of project bids offer an opportunity to grow sales.

Expand Services – The Company has the potential to leverage its customer connections and reputation to expand into offering sheet metal services.

Facility Capacity – The Company operates from a central location that offers room to expand operations by about 25 percent.

INVESTMENT HIGHLIGHTS

Highly Qualified – The Company holds a complete array of national and state industry certifications and is qualified to work on a full range of commercial, industrial and institutional projects. It has kept up with changing technology for tools that increase quality and productivity.

Quality Employee Pool – The Company maintains an excellent relationship with the local United Association union and has a staff of dedicated, long-term employees. It provides continuous training for both journeyman and apprentice employees.

2017 Revenue:                                   $7,000,000

2017 Adjusted EBITDA:                      $1,400,000

 

MICHIGAN-BASED VEHICLE SEATING PRODUCT LINE

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

 

WEST MICHIGAN-BASED DIGITAL STUDIO

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

    

AGRICULTURE SERVICES AND PROCESSING COMPANY

AGRICULTURE SERVICES AND PROCESSING COMPANY

This full service agriculture company based in the Midwest is ideally located in a highly productive agricultural region. As a leader in the industry, it has earned a renowned reputation for excellence in quality and service. Proven performance, combined with excellent customer service and solid supplier relationships have fueled the Company’s steady growth.

The Company’s main lines of business are grain and agronomy. Due to its service diversification, the Company is growing and consistently generates strong profits. With total revenues of less than $100 million and a strong EBITDA, the Company is well-positioned for projected high demand.

GROWTH OPPORTUNITIES

Geographic Expansion – The Company currently has the capability to provide a number of services beyond its current market. Developing a broader geographical area may also yield additional sales.

INVESTMENT HIGHLIGHTS

Expertise – Each division of the Company has highly skilled, educated employees. The Company’s agronomists are trained experts in products and services that work best with each soil type. The Company’s grain division procures commodities from a wide geographic region for both rail and truck destinations.

Industry Diversification – Throughout its history, the Company has added products and services as its customers’ requirements have evolved. At the core, the Company’s commitment is to provide new and technically-advanced products and services to an ever-expanding number of customers.

Global Necessity – As the world population continues to grow, food products will correlate to increased global demand. Strong

Customer Relationships – The Company personally knows their customers, and is very familiar with their operations. Repeat business and new growth can be attributed to the solid reputation the Company possesses. Trust is evident in the long term relationships with the Company’s customers and employees.