*COVID-19 Impact: Prior to COVID, the Company consistently produced strong positive cash flows, with SDE in excess of $600K+ in each of the years 2017-2019. The Company is now in a situation where, despite strong quoting activity, new mold builds have stalled because customers are very slow to approve launches.
Despite suppliers offering credit terms and on-time deliveries, and an open and transparent relationship with his bank, the owner is legitimately concerned about the Company’s medium-term ability to meet its loan payment obligations and thus has a sense of urgency to sell all or part of the Company to a buyer with capital and relationships to maintain continuity for the many skilled and loyal employees, and long-term customers.*
This Company is an industry-leading builder of close tolerance molds. As a skilled mold company, the Business specializes in every area of insert molds, two material molds, and test specimen molds. High-value products, quality, responsibility, and efficiency are enforced from the top-down throughout the medical, plastic R&D, furniture, consumer goods, and automotive industries. The Company offers plenty of competitive attributes (including its strong customer relationships, niche expertise, and high-quality products) to provide efficiency, value, and quality core to this Company’s mission. This commitment has allowed the Company to tackle any project on any budget, with extremely precise specifications.
Additionally, the Company has built a reputation for value. The Company places value on mutually beneficial relationships with its customers, and because of this, they have crafted a reputation as a fair, consistent Business.
The Company has implemented rigorous engineering techniques to assist customers from part design to molding parameters. Additionally, utilizing the latest technology, the Company can accelerate time to market.
Technology and manufacturing are yet another cornerstone of this Company. The Company not only believes in utilizing technology to speed time to market but also to maximize customer value. By using world-class lean manufacturing principles, the Company is better able to manage quality and cost in every process.
Regimented preventive maintenance programs keep equipment in excellent condition, ensuring no project is slowed down due to equipment malfunctions.
The Company was established in 1986, and the current owner gained 100% ownership through a stock sale in 1998. Since that time, the owner has built a strong foundation that operates today. The owner is willing to help the new owner(s) in the transition process.
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67,348 square feet of total facility space comprising warehouse, production, and office space.
Growth Opportunities Include: (1) Advertise Niche Expertise: Over the past 40 years, the Company has developed a significant competitive advantage specializing in a niche expertise. This Company is one of two in the world to build a very specialized type of mold. With the other manufacturer being overseas, there is a massive opportunity to aggressively capture the U.S. market. (2) Diversify End Markets: While the Company has a diverse customer base, opportunities exist outside of the current customer base. For example, the food and beverage industry is one of the top industries utilizing custom mold injection. Companies often use molds to produce beverage caps, processing equipment components, beverage filtering components, and food or beverage containers. (3) Add a Salesforce and Marketing Strategy: Currently, the Company relies on two project managers to acquire new customers. The owner believes with the addition of a dedicated salesperson, the Company will be positioned to gain market share and win new customers. (4) Invest in New Equipment: With established leadership in place for the daily operations of this Company, a new owner could mainly focus on strategic capital expenditures to grow the Business. The addition of new equipment and more advanced technology has the potential to double The Company’s revenue.
Investment Highlights Include: (1) High-Quality Products: The Company’s product quality is unsurpassed. Skilled engineers and craftsmen with years of experience guarantee product quality at each step of the process, from part design to molding parameters. When a mold hits a customer’s production floor, it has been thoroughly tested and is ready for production-level applications. (2) Niche Expertise: Two-shot molding is a developing technology in the United States; however, this technique has been popular in Europe for years. This Company is one of a handful of U.S. companies that have expertise in this high-precision technology. (3) Strong Customer Relationships: The Company maximizes value to customers by implementing efficient processes and eliminating non-value-add steps. This has allowed the Company to develop strong relationships with customers.
The current owner has spent many years working within the Business and is looking to reduce his time commitment. Additionally, he is feeling financial pressure due to a slower than expected recovery.
Ownership is willing to stay on for a brief transition period and would like to ensure that the employees are comfortable with new ownership, and there is no loss of staff.