MergerPlace

NG Pipeline Products Distribution

Michigan


  • Asking Price: $1,300,000
  • Gross Income: $1,502,259
  • Cash Flow: $400,354
  • Real Estate: Not Disclosed
  • Inventory: $10,000
  • FF&E: Not Disclosed
  • Listing ID: #210089
  • Established: 1994
  • Employees: 2

Business Description

This Company is a manufacturers’ representative and distributor of OEM and non-OEM after-market replacement parts for the natural gas pipeline industry.
With literally tens of thousands of consumers relying on this infrastructure, utilities and pipeline owners need reliable vendors that can be trusted completely to supply quality replacements parts on a short timeframe. For this reason, natural gas stations throughout Michigan and Indiana have been choosing this Company for 25 years to supply them with replacement parts critical for this infrastructure.
The founder and owner of this Company has invested decades in building out a far-reaching network of industry leading manufacturers that supply the parts that keep the lights on and homes warm throughout these two states. Being at the nexus of manufacturers and pipeline companies has proven to be very lucrative. The Company averages an EBTIDA margin of nearly 20% of sales.
Ownership is nearing retirement age and is seeking to transition the business to the next generation of ownership. The office is home-based and therefore no real estate is involved.
Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. You will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found please email info@caldergr.com and request a PDF version.
Once we receive your NDA and answers to some basic questions the Confidential Offering Memorandum (OM) will be sent to you from the project manager.
IF YOU DO NOT RECEIVE A FOLLOW UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email info@caldergr.com for support. Thank you in advance!


Business Details

Primary Business Category: Manufacturing - Miscellaneous Manufacturing
Location: Michigan

Company Information

Year Established: 1994
Home Based: Yes
Franchise: No
Relocatable: Yes
Number of Employees: 2

Financial Information

Asking Price: $1,300,000
Gross Revenue: $1,502,259
Cash Flow: $400,354
Inventory: $10,000
Seller Financing Available: No

Property Information

Facilities:

Home Office

Growth & expansion opportunities:

Growth and Expansion Opportunities: Market Outlook – This Company is well positioned to grow along with the natural gas market. According to EIA’s Annual Energy Outlook 2018, U.S. dry natural gas production will increase through 2050 across a wide variety of alternative assumptions about the future. This supply will be supported by growing demand in an environment of low and stable natural gas prices in both domestic and international markets. Expand Sales Efforts – There are no restrictions on the territory that the Company can serve. Illinois and Ohio may prove to be lucrative markets worth expanding into. Illinois has a major artery of pipelines carrying natural gas from the Gulf of Mexico up into the Northern United States and Canada. New pipelines and pipeline stations are currently being built in Ohio to move shale gas out of New York to the rest of the country. Marketing Strategy – Although the Company does have a limited web presence, it does virtually zero marketing. Investing in internet marketing, brand development, and a customer relationship management system would all be excellent means of growing the Company’s market share.

Competition:

Competition/Market Pros and Cons: Consumable Products – This is a repeat sale business. The Company supplies wearable and moveable parts to the gas pipeline industry, so demand is steady with the occasional spikes from major capital equipment rebuilds. Approved Vendor Security – The Company is an approved vendor to three major natural gas companies in Michigan and Indiana. These companies have strict criteria for selecting vendors and cannot take undue risks relying on upstarts or fly-by-night operations. The Company is integrated into its top customers’ SAP systems and has been working with them for decades. Unique Value Proposition – Customers appreciate the broad selection of products that the Company can provide them with. Instead of working with 10 different vendors, they can save time and money going to this Company for nearly all their consumable parts needs. Limited Overhead –The owner of this Company has run the business out of his home since its inception with nothing more than a home office, garage, work vehicle and a couple of computers.

Reason for selling:

Retirement

Support & Training:

Ownership willing to provide reasonable and customary transition assistance.

Contact Business Seller

This form may be used only to contact the seller of this specific business listing. Please do not use this form for any other purpose.

Business Listed By:

Max Friar

Calder Capital, LLC