MergerPlace

Niche Drivetrain OEM Manufacturer

Michigan (Genesee)


  • Asking Price: Not Disclosed
  • Gross Income: $6,945,482
  • Cash Flow: $711,570
  • Real Estate: Not Disclosed
  • Inventory: $1,262,085
  • FF&E: $3,116,550
  • Listing ID: #210313
  • Established: 2006
  • Employees: 40

Business Description

Established over a decade ago in Genesee County, Michigan, this Company is a respected and profitable supplier of service and low-volume production parts to the Automotive, Off-highway Vehicle, and Heavy-duty Vehicle industries. Although the Company has experience manufacturing and assembling a wide array of parts and components, its manufacturing niche is drivetrain and drivetrain related components. As a result of being highly adaptive and responsive to customer demands, the Company has evolved over time to master many manufacturing capabilities including machining, robotic welding, rubber injection molding, fabrication and assembly.
GM, Chrysler, Dana, and Eaton Corporation are all long-time customers of the Company and speak highly of the Company’s commitment to excellence. Individuals or investment groups interested in this opportunity will also be pleased to find that the Company has seasoned leadership and a production team that has proven many times its ability to work together to overcome complex and difficult challenges.
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 - Primary Metal
Location: Michigan
County: Genesee

Company Information

Year Established: 2006
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 40

Financial Information

Gross Revenue: $6,945,482
Cash Flow: $711,570
EBITDA: $555,070
FF&E: $3,116,550
Inventory: $1,262,085
Seller Financing Available: Yes

Property Information

Facilities:

The company operates out of two facilities, a 20,000 sqft facility built in 1980 in good condition. The facility has 1 loading dock, 12-ft ceilings, a fire suppression system and 600 amp power. The 2nd facility is 40,000 sqft, in excellent condition and built in 2000, has 20-ft ceilings, a fire suppression system, 4 loading docks and 1600 amp service.

Growth & expansion opportunities:

Growth Opportunities Include: Expand into Defense and Aerospace Industries – Over the past year the Company has implemented NIST 800-171 Cybersecurity Certification. The Company is now eligible to bid on work for the Defense Industry while many existing suppliers are getting dropped from the approved vendor lists due to their inaction on implementing NIST. This is attractive in that it would continue to diversify the Company’s customer-base away from automotive and into an industry that is relatively immune to the overall business cycle of the larger economy. Expand into Oil and Gas Industry – Companies that were overly reliant on the Oil & Gas Industry suffered greatly during the collapse in prices in 2014. Three large machining companies in the Company’s radius of business went out of business in the past couple of years because of this phenomenon. Now that the Oil & Gas market has recovered and new domestic production records are being set, it is reasonable to assume that there is an opportunity for the Company to step into the vacuum created by the collapse of these other companies. Build Sales Team – The Company’s owner is also the point person for all sales efforts at the Company. As he is also responsible for the leadership and general oversight of the Company, this leaves little time for him to develop new business. Building a dedicated sales team would be tremendously beneficial. The Company has had some success in the past working with sales reps, but is still searching for the best option to grow sales.

Competition:

Investment Highlights Include: Competitive Advantage – The Company has a very broad set of capabilities, which means that it has very few direct competitors. Typically, small manufacturers in this industry focus on either machining, welding or prototyping. The Company differs from most as they can provide complete assemblies and not just one operation. Because the Company is proficient in all of these types of manufacturing, it is able to manufacture service parts as well as assist customers with everything from developing a prototype to getting it into the early stages of production. Great Customer Relationships – One of the most valuable assets that the Company has acquired is its outstanding reputation among its customers. Not only has the Company received accolades and awards for its performance as a supplier, but new business is frequently generated via customer referrals. The Company has never lost a customer. Heavy Reinvestment in Equipment – An equipment appraisal completed in July of 2018 estimates a fair market value for equipment to be over $3MM with minimal debt. The Company has refrained from using debt to make capital expenditures.

Reason for selling:

In his late 50s, the owners is interested in a buyer as a transition partner.

Support & Training:

Ownership willing to provide reasonable and customary transition assistance.

Contact Business Seller

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Business Listed By:

Max Friar

Calder Capital, LLC