This opportunity is presently under exclusive LOI and therefore cannot be discussed. Please enter your information below and we will contact you should the opportunity become available in the future.
This is a highly profitable and locally-owned industrial supply distribution Company for sale located in the Greater Western Michigan region. The Company serves over 100 metalworking companies within a 75-mile radius of its facility. Its longevity and profitability is the result of well-established relationships with local manufacturers and a keen ability to evolve alongside the markets and industries in its geographic region. Superior product lines, knowledgeable customer sales representatives, and the fact that the Company has been a part of the local community for decades, are all reasons that the Company is able to maintain such a significant proportion of the local industrial supply market year after year.
The President of the company is seeking to slow down and transition to other ventures. A well-seasoned sales / service team is in place.
- The Company carries a wide array of carefully chosen premier industrial supply brands.
Financial Summary
2015 Revenue: $7,886,671
2015 ODE: $767,202
2016 performance is in-line with 2015.
- Superior product lines, knowledgeable customer sales representatives, and the fact that the Company has been a part of the local community for decades, are all reasons that the Company is able to maintain such a significant proportion of the local industrial supply market year after year.
Investment Highlights
Experiential/Tribal Knowledge – In the distribution industry, there is no substitute for experience. The collective knowledge of the team provides the organization with advantageous knowledge about the companies it serves, the industries it works within and, the competitive landscape. This experiential knowledge informs decisions about what new prospects to target, the specific needs of existing customers, how to quote, and how much and what inventory to carry.
Low Turnover – The average employee tenure is very high and because of the small size of the team, the culture at the Company is very familial. Employees are loyal to each other and proud to be part of a Company that has been a key asset in the community for decades.
Low Customer Concentration – Top ten customers combined generate less than 50% of its revenue.
Highly Autonomous Business – Due to internal systems, well-defined roles, and self-directed employees, the owner is able to do essential tasks in approximately 20 hours per week.
- Due to internal systems, well-defined roles, and self-directed employees, the owner is able to do essential tasks in approximately 20 hours per week.
Growth Opportunities
Strategic Acquisition – An industrial supply distribution company with several product lines overlapping those of the Company could instantly gain greater economies of scale and access to a broad swath of manufacturing businesses in the region where this Company is active.
Investment in Automated Tooling Management Technology – For larger customers, the utilization of automated tooling management systems is almost certainly the future. While pursuing this strategy would require capital investment, the ROI could be exceptional.
Lead Generation – Marketing and intensive lead generation efforts have been minimal. While focusing on serving existing customers exceedingly well has been a successful strategy for the Company for many years, growth will require seeking out new customers and markets.
The BEST way to receive confidential information about this opportunity is to fill out the form below.
Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact Pankaj Rajadhyaksha pankaj@caldergr.com or 616-302-0302 with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and have a brief introductory phone call with a broker. Inquire today about this profitable industrial supplies distribution company for sale!
