MergerPlace

Highly Profitable Mold Manufacturer

Michigan (Berrien)


  • Asking Price: Not Disclosed
  • Gross Income: $2,651,000
  • Cash Flow: $903,381
  • Real Estate: $1,000,000
  • Inventory: $314,279
  • FF&E: $1,500,000
  • Listing ID: #210870
  • Established: 1982
  • Employees: 12

Business Description

If you are seeking a time-tested and strongly profitable manufacturing company in Michigan, do not miss this opportunity. We do not see companies this nice very often!
From its 18,000 sq. ft. facility in Southwest Michigan, this Company designs, builds, and repairs molds for the diecast industry. The manufacturing precision, long-standing customer relationships, and industry specific knowledge required to do this work eliminates many other tool & die shops in the region from competing with the Company. These barriers to entry enable the Company to charge a premium for its services. Over the past several years, the Company has averaged a Gross Profit Margin of nearly 50% of sales and a Net Income Margin of over 20% of sales.
Over its three decades of operations, the Company has experienced many different economic environments. Thanks to the low-overhead business model of the Company and its nimble size, it emerged a stronger organization with each test. Buyers interested in this Company will be pleased to find that this tested and proven Company has an extremely knowledgeable team, desirable customers, and a facility and equipment that have been consistently reinvested in.
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: Berrien

Company Information

Year Established: 1982
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 12

Financial Information

Gross Revenue: $2,651,000
Cash Flow: $903,381
EBITDA: $734,160
FF&E: $1,500,000
Inventory: $314,279
Real Estate: $1,000,000
Seller Financing Available: Yes

Property Information

Facilities:

The company operates from a very well-maintained 18,000 sq. ft. facility that includes 2,000 sq. ft. of office and 2,000 sq. ft. of storage. Major improvements were made in 1991, 1995 and 2014.

Growth & expansion opportunities:

Grow Business with Existing Customers Over the years, the Company has worked with many businesses throughout the state and beyond. Several of these customers suffered slowdowns are now on track to perform much better. Reaching out to these previous customers would be a simple and low-risk strategy for growth. Expand Sales Team and Marketing Efforts The Company’s owner is the only sales person and the Company engages in virtually zero marketing efforts. Quoting jobs for existing customers and managing those relationships provides the Company with more than enough work. However, adding a dedicated salesperson to reach out to new potential customers would be a great way to grow the business and diversify its customer base.

Competition:

High Profits and Repeat Business Due to the nature of this type of manufacturing, the end product is very expensive and so it can support high-margins. However, despite the quality of the tool and the considerations that goes into its design, after thousands or tens of thousands of cycles, it will need to be repaired, rebuilt or replaced. So, although the Company typically does low volume work, it can count on a consistent demand for high-margin projects. Consistent CAPEX Reinvestment The Company consistently reinvests in its facility and equipment. This reinvestment sets the Company up well for future growth, and will also serve as good collateral, should the Company’s next owner decide to finance the acquisition with debt. The real estate, which is anticipated to also be part of the transaction, has an estimated value of over $1MM. Total equipment value is estimated at $1.5MM.

Reason for selling:

Retirement

Support & Training:

Ownership willing to stay on for multiple years post-transaction if desired.

Contact Business Seller

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Business Listed By:

Max Friar

Calder Capital, LLC