Excellent Opportunity for a Machine Shop Owner to Bring Machining In-House and Add a Proprietary Brand Name!
Established over a decade ago, this West Michigan company holds proprietary rights for a specific brand of machines. The company sells OEM parts and engineered parts orders for existing honing machines, die cast machines and planers. The company also builds and repairs custom machines for various applications.
During 2015, the company took on large jobs which had cost overruns resulting in the erosion of the company’s capital base. The majority owner of the company is not able to recapitalize the company through the leveraging of personal assets due to his health and age. As such, ownership is pursuing the sale of the entire company, but is open to a partial sale as well.
The Company employs seven skilled workers including the two shareholders.
- Presently, the Company outsources machining services. A strategic buyer with in-house capabilities for engineering (controls and mechanical) and machining could easily add the company’s capabilities to their own while reducing production costs and adding a brand name to their portfolio.
Financial Summary
December 2016:
Sales: $1,342,318
EBITDA: $532,785
Sellers Discretionary Earnings: $641,954
- The Company is the only supplier of replacement parts for a specific long-established brand of machines.
Investment Highlights
Proprietary Designs – The Company has approximately 2 million prints of honing machine brands, die cast machine brands, and planer brands, and is the only supplier of replacement parts for the machines. A well-capitalized buyer can grow the business significantly through more effective sales and marketing.
Real Estate – The Company is open to selling the real estate to someone that does not want to buy the business. The seller may be willing to lease back the property for a period of time. The real estate consists of a 24,000-square foot light industrial building on just under 2 acres of land. Surrounded by solid industrial companies, the location is also close to 196. Attractive SBA 504 financing may be assumed by an owner-occupied company with permission from the SBA.
Management Transition – The company management is flexible in terms of transition time and is willing to stay on for an extended period in an employee capacity.
- Prior to the cost overruns of 2015, the Company was profitable. A better-capitalized buyer could dramatically grow the Company based its proprietary asset base and brand.
Growth Opportunities
Bearing Raceway Hone Manufacturing – Currently, no one manufactures bearing raceway honing machines in the US. The buyer could be the only manufacturer of this US-made product and carve a niche for themselves.
Bring Machining In-House – Presently, the Company outsources machining services. A strategic buyer with in-house capabilities for engineering (controls and mechanical) and machining could easily add the company’s capabilities to their own while reducing production costs and adding a brand name to their portfolio.
Expand Service Offerings and Parts Sales – A new owner could diversify into other fields such as specialty machines or job honing. In addition, there are more opportunities to generate parts sales through more effective location of legacy machines throughout the world. One of the present owners has mapped out sales territories and a strategy and maintains interest in becoming a salesperson for the buyer.
- The company sells OEM parts and engineered parts orders for existing honing machines, die cast machines and planers.
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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 info@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a questions related to their background and interests. Inquire today about this distressed proprietary manufacturer for sale in Michigan!
