MergerPlace

Machine Shop with Proprietary Product

Michigan (Allegan)


  • Asking Price: $1,800,000
  • Gross Income: $1,410,830
  • Cash Flow: $360,210
  • Real Estate: $400,000
  • Inventory: Not Disclosed
  • FF&E: Not Disclosed
  • Listing ID: #214666
  • Established: 1949
  • Employees: 7

Business Description

The profitable and well-established machine shop offers milling, turning, fabrication, welding and roll grinding services to customers in the surrounding region and beyond. Additionally, the Company sells its own patented roll hardness testing meters primarily to large paper manufacturers. The product is widely regarded as the top-of-the-line industry solution, and certain customers use it exclusively to test their own products, prior to shipping. These products represent a significant growth opportunity as word of their existence has only traveled via word-of-mouth.

In business for nearly 70 years, the Company has weathered numerous regional economic downturns, the transformation of entire manufacturing industries and processes, and is clearly here to stay. The Company’s longevity has been achieved by focusing intensely on the needs of the customer and maintaining a high level of professionalism.

Ownership has put in place a seasoned General Manager and systems to remove themselves from the Company’s day-to-day operations and monitor performance remotely. Both owners reside out of state and one owner visits the Business only a few times per year.

The Company’s customer base is well-diversified, with long-term relationship customers.

Ownership would like to sell to transition to retirement. The real estate is available for sale as part of the transaction and is included in the asking price.

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 - Machinery
Location: Michigan
County: Allegan

Company Information

Year Established: 1949
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 7

Financial Information

Asking Price: $1,800,000
Gross Revenue: $1,410,830
Cash Flow: $360,210
Real Estate: $400,000
Seller Financing Available: Yes

Property Information

Facilities:

The Company’s facilities are in good condition and have passed all environmental inspections. 60% of the buildings’ roof was recently replaced. Equipment is well-maintained by machinists and regularly calibrated to maintain tolerance requirements.

Growth & expansion opportunities:

1) Actively Market and Promote Patented Product – Although the Company’s proprietary, patented roll hardness tester is the only one on the market, sales have been generated entirely by word-of-mouth. Actively marketing these products are a huge growth opportunity. 2) Further Diversification of Customers – The Company could enter parallel niches and continue to branch out its end markets. 3) Sales/Marketing – Overall, the Company does not engage in any sales or marketing efforts, which reflects the owners’ conservative approach to growth. Ample opportunity remains for a growth-focused owner.

Competition:

Investment Highlights Include: 1) Consistent Revenue and Profitability - Unlike many machine shops its size, the Company has generated extremely consistent sales and high levels of profitability with owners’ discretionary earnings averaging 25% of revenue. Many factors contribute to the Company’s predictable and strong financial performance, including, its core niche, long-term customer relationships and limited competition. 2) Multiple Revenue Streams – The Company’s revenue well balanced between paper manufacturers, non-paper customers and the sale of its proprietary roll hardness testers. 3) Not Owner Dependent – Ownership is not involved in the day-to-day operations, and in fact, visits only a few times per year. Ownership has the systems in place to allow the machine shop side of the business to function smoothly with minimal monitoring by the owner. Ownership oversees the hardness testing meter side of the Business; but could inform new ownership with minimal training and the operation could be run from any location. The workforce is extremely capable and committed, and many have been with the Company for considerable time.

Reason for selling:

Retirement.

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