MergerPlace

Special Machinery Manufacturer

Michigan


  • Asking Price: Not Disclosed
  • Gross Income: $3,060,739
  • Cash Flow: $738,133
  • Real Estate: Not Disclosed
  • Inventory: $222,010
  • FF&E: Not Disclosed
  • Listing ID: #225588
  • Established: 1946
  • Employees: 20

Business Description

***Special Note: In a victory for small business buyers, the recent $900BB stimulus bill directs the SBA to pay the first 6 months of new SBA 7(a) loans approved between February 1 and September 30, 2021 (up to $9,000/month). Our advice: Don’t wait. Find a quality business and get moving quickly. Banks will be busy this year and buyers that wait until July/August will likely lose out.

The Company is a manufacturing company that designs and builds special machinery and industrial automation for a broad range of industries. The Company offers mechanical designs, controls design, programming, fabrication, machining, assembly, electrical, pneumatics, and hydraulics all in one facility.
With over 75+ years in operation, the Company is committed to complete project management and multiple customer touchpoints so that the job is to customer specifications.

The Company offers a diverse range of services from small fixtures and tooling to medium-sized stand-alone custom machines up to large automated systems integrated with robots, presses, ovens, and transfer lines.

The Company’s proficiency in designing and building machinery for a diverse variety of industries has set the Company apart in the Special Machinery Manufacturing industry. The Company’s top industry served varies from year to year, based on the overall economy and what industries are experiencing higher demand than others at a given time. The Company’s versatility has allowed them to remain resilient and profitable even in times of economic turmoil.

Four owners hold equity in the Company. Owner 1 and Owner 2 will be retiring, and Owner 3 seeks to stay on with the Company for 5+ years. Owner 4 is not a part of the Company’s operations.

Owner 1 is the Company’s President. Owner 1 originally worked for a separate entity and was tasked with overtaking the Company. He has been a part of the Company since 1968 when the separate entity acquired the Company. He took full control over the Company’s operations in 1971. In 1985, the present Ownership bought the Company. Owner 1 spends much of his time at his condo in Florida and is looking forward to full retirement after a rewarding career with the Company. Owner 1 describes himself as an advisor to the Company. He is semi-passive in his ownership but is the majority owner of the Company.

Owner 2 is the Controller of the Company. She handles the accounting and financial functions. Her responsibilities within the Company would need to be replaced by the new owner(s). She is looking to be fully transitioned out of the Company so that she too can begin a well-earned retirement. Owner 2 is willing to assist new ownership for a reasonable transition period.

Owner 3 is the Company’s Vice President of Operations. He handles quoting/estimating and customer interaction. He is looking to stay on with the Company for the next 5+ years. He is crucial to the Company’s operations and will be an excellent resource in both aiding new ownership in the transition period and spearheading the Company’s operations moving forward.

Owner 4 is a minority, non-active owner. He has no involvement in the Company and is not a part of the Company’s operations whatsoever. His equity would be phased out by new ownership.

The Company operates out of the original building. The facility has undergone upgrades and renovations over the years. The building is approximately 38,000 square feet, with dock doors and a front office space. The Company’s equipment base includes boring mills, milling machines, grinding machines, lathes, CNC capabilities, and fabricating equipment.

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 Information Memorandum (CIM) 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

Company Information

Year Established: 1946
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 20

Financial Information

Gross Revenue: $3,060,739
Cash Flow: $738,133
Inventory: $222,010
Seller Financing Available: Yes

Property Information

Facilities:

The Company operates out of a 38,000 square foot facility, which has been kept to date through many renovations and additions over the years. In recent years, doorways, garage doors, roofing, and lighting have all been upgraded.

Growth & expansion opportunities:

(1) Invest in Younger Staff Members: With a large portion of the Company’s staff being older in age, the opportunity exists to invest in newer and younger employees. To attract these younger members, the Company could refine the recruiting process to include heightened online accessibility to employment opportunities. Much of the younger generation seek job opportunities online, and the Company currently does not exhibit a “careers” page on the Company’s website. Creating one could draw increased attention to job openings and attract younger talent. (2) Website and Outbound Marketing Methods: While current ownership has strived to keep the Company’s website current, it has not generated much traffic. There has been difficulty in dialing in the specificity of the website due to the Company serving a wide array of industries. One immediately actionable improvement point would be to investigate the site’s backend development and make improvements to heighten the page’s status on search engines like Google. The Company remains careful with what is displayed on the website because, ultimately, the customers’ machines are proprietary. (3) Strengthen Sales Infrastructure: Current ownership has found that sales representation is the most challenging position to fill at the Company. The Company could strengthen sales by way of incentivizing the sales commission structure to include increased opportunities for financial reward. Further, sales representatives could be provided with greater support and training to more definitively represent the Company. The Company has recently hired a sales representative that they believe is a good fit and could help grow the Company’s top-line going forward. (4) Utilize Excess Capacity: The Company’s facility includes substantial excess space to position workstations, equipment, and storage. Current ownership estimates that the Company currently utilizes only 40% of the facility space available. Ownership estimates that present facility infrastructure could allow for $6M to $10M in revenue before full capacity is met. Expanding sales to meet the Company’s capacity level could realize synergies from the sizable equipment base that the Company owns. Doing so would require no additional capital expenditures from new ownership.

Competition:

Investment Highlights Include: (1) Diversified and Adaptable Service Capabilities: The Company’s diverse capabilities are key to its success and longevity. This diversification has given the Company unique adaptability. In times of economic turmoil, the Company can pivot into serving industries that are experiencing demand. Common industries served by the Company include automotive, pharmaceutical, biomedical, glass, steel, furniture, and food. Industries with significant manufacturing components can utilize the Company’s special machine manufacturing prowess. (2) Reputation of Longevity and Reliability: The Company has been in business since 1946. The Company started as a machine shop and tool builder and developed into a world-class manufacturer of custom machinery and automation. Over its many decades running, the Company has built successful long-term relationships with its customers. The Company is committed to exceeding its customers’ needs in quality products and exceptional service for machines, automation, and system integration. The Company offers hands-on project management to ensure the success of each build. The Company’s longevity in the industry is not only a testament to its customer satisfaction and exceptional quality standards but also to the Company’s ability to adapt to a wide range of circumstances. The Company has remained strong through economic ups and downs, shifting industry trends, and evolutions in technology. Over the decades, the Company has built a well-known reputation and a tightly knit network of customers and vendors. (3) Highly Knowledgeable, Experienced, and Cross-Trained Staff: The Company includes a strong base of skilled staff, many of whom have been with the Company for 10+ years. All staff are cross-trained to meet the Company’s ever-shifting industry demands. The Company provides its staff with all the necessary training, both internal and via outside resources. The Company often takes on young apprentices and trainees who come in with a robust skillset and grow further in their field by learning from the expertise infused throughout the Company. Staff members are encouraged to keep learning. The Company provides support through financial coverage for schooling if staff members desire to obtain supplemental outside training. (4) Niche Services with a Tight-Knit Customer Base and Vendor Base: The Company serves a niche area of multiple industries. This allows the Company to foster a loyal customer base because not only do they provide quality services, but they also provide a robust service offering that faces minimal competition. This proclivity for loyalty and camaraderie is what has defined the Company’s customer and vendor relationships.

Reason for selling:

Owner 1 is the Company’s majority owner and is seeking retirement. Owner 2 is also seeking retirement.

Support & Training:

Ownership is willing to provide reasonable and customary transition assistance. Owners 1 and 2 are willing to assist the new owner(s) in a reasonable transition period. Owner 3 will stay with the Company and be an excellent guide for new ownership over the transition period.

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Business Listed By:

Max Friar

Calder Capital, LLC