This Company is an innovative water treatment solutions company that designs, builds, assembles, and installs water treatment systems for industrial plants across the United States and overseas. These systems prepare water for use in manufacturing and treat water before discharge or recycling. For over 35 years, the Company has installed water treatment solutions across various industries, including automotive, aerospace, electronics, appliances, structural aluminum, and metal tubing manufacturing.
The Company was founded in 1984 by the current Owner. Its service offering is comprised of three main functions—engineering water treatment solutions, assembly, and installing those systems.
Whether it is continuous-flow, batch-treatment, pre-treatment, or post-treatment, the Company’s water treatment systems are designed using the highest-quality components and state-of-the-art engineering. These solutions are expandable, durable, and built to exceed compliance requirements. In addition, the Company provides on-site training, so the customer’s workforce is knowledgeable about day-to-day procedures. Overall, this results in reduced labor expenses and more reliable treatment systems.
The Founder has put 35+ years into building the Company from the ground up, and he is ready to slow down on business-related travel and retire. While he works 45 to 50 hours per week for the Company, he has noted that the new owner(s) could work a total of 30 hours per week in an active role and maintain current business performance.
Buyers will be required to have a minimum of $500,000, solid credit, and preferably industry experience to qualify for SBA 7a financing.
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The Company leases a 26,000 square foot facility from an unrelated third party.
Growth Opportunities Include: (1) Implement a Greater Salesforce and Marketing Strategy: The Company is seeing a significant uptick in activity due to its main competitor being acquired. Due to this demand increase, there are plenty of opportunities to increase sales by adding salespeople to the team, improving the website, and heavily marketing to current and new potential customers. Adding a salesforce could allow the Company to acquire new customers proactively. (2) Shift Towards Domestic Manufacturing: Due to the COVID pandemic, many manufactures are reshoring. This will benefit the Company by reducing the cost of deliveries, creating shorter lead times, accelerating the sales process, and enabling more agile forecast responses. (3) Change in Competitive Industry Landscape: A chemical supplier recently acquired the Company’s largest competitor. The Owner feels that the acquisition and integration of their largest competitor has opened some opportunities for smaller, more flexible companies like the Company. Additionally, in the Owner’s experience, when a competitor has been acquired or consolidated, they tend to slow down and chase the largest projects, which has resulted in substantial opportunities for the Company over the last three months. (4) Robust Pipeline Activity: The Company currently features healthy pipeline activity and actionable sales growth avenues. The Owner was and is confident that the Company could accomplish outstanding sales for 2020 and 2021 after being shut down for two months due to COVID-19. The Company has an outstanding $1.4M current backlog carrying into the 1st quarter of 2021. The Company also has a commitment (not signed) for a $1.7M project from a customer that is projected to start in May 2021. The Owner is projecting 2021 to be a solid year with $4M in revenue.
Investment Highlights Include: (1) Financial Strength and Growth: The Company has produced an impressive top and bottom-line performance by executing stable operational efficiencies—robust systems, skilled personnel, and a diverse customer base. The Company almost doubled its revenue from 2019 to 2020 while operating at a substantial gross profit margin of 51.1% in 2020. (2) Experienced Team with Low Turnover: The Company’s key employees have over 115 years of combined experience working at the Company. Four of the key employees have been with the Company for more than a decade each. This combined experience proves that the team has the proper skill sets and understanding of what it takes to succeed in the Company’s business structure moving forward without a need to be trained by new ownership. With a small yet experienced team, new ownership should know that every team member has a purpose and a different skill set that coincides with the operations that have led to the Company’s success. (3) The Ability to Cater to Specific Customer Needs: The Company customizes its assembly to meet its customers’ specific needs in their industrial facility. The Company does all design, fabrication, and installation in-house with only an eight-person team. High-quality work and the ability to cater to specific customer needs have led to the Company’s success and have provided the Company the luxury of relying on a referral-based lead system.
The Owner has put 37 years into building the Company from the bottom up, and he wants to slow down on business-related travel and retire.
Ownership is willing to provide reasonable and customary transition assistance for up to 2 years.