This 60+ year established West Michigan-based Company sells, installs, maintains and calibrates equipment for niche industrial systems. The Company’s direct sales and service personnel serve virtually every industry from food and pharmaceutical to discrete manufacturing, agriculture, and distribution. Major customers include Amazon, Dematic, and Honeywell International. The Company is closely allied with the primary manufacturer it represents, which provides the Company with a well-regarded brand/product, an exclusive sales territory, and an impressive array of marketing strategies. While the majority of the Company’s revenue is derived from direct product sales, service and maintenance work generates recurring revenue and represents a significant opportunity for future growth.
One of the owners is nearing retirement age and seeks to transition. The other owner is interested in remaining with the company in a sales capacity for multiple years, if mutually desired post-transaction.
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One headquarters and service facility and one satellite office.
Focus on Service – For many years, the Company’s strategy has been to focus on sales almost singularly, leaving the service department far from reaching its potential. This does not have to be the case going forward. The current owners believe that they lack the passion and skillset to remake and motivate the service department. But, with the right leadership, the service department could not only be a significant profit center for the business, but an engine for driving future sales with existing customers. Implement Sales and Marketing Strategy – The owners have been so busy with managing the day-to-day operations of the business that developing and implementing sales and marketing strategies has been virtually impossible. Positive Trends – The future of warehouses, distribution facilities, and factories is greater automation and additional demand for real-time data collection. The Company, with its expertise, is well-positioned to help its customers meet this future.
Selling the Ideal Product – From a business perspective, the particular industrial equipment sold and serviced is a compelling product. There are several reasons why this is the case: 1. The universal need for this equipment in industrial and commercial processes 2. High value items, high margins – The Company’s gross profit is on average 32% of sales. 3. Recurring revenue – The equipment must be routinely calibrated, repaired and serviced. Top Salesman – The Company’s top salesman is interested in staying on post-transaction for the next couple of years and potentially longer.
Ownership willing to provide reasonable and customary transition assistance.