This well-known manufacturer of heavy machinery produces a specialized piece of equipment that dominates its class in the market, excelling in both performance and ruggedness. The heavy machinery is distributed to customers across North America in the agriculture, lumber, junkyard, landscaping, construction, and oil and gas sectors through an authorized dealer network.
The company has a purchase order for every piece of equipment it can produce in the next two years with its current production capacity – a backlog totaling over $55M in revenue. This strong foundation allows new ownership to be comfortable aggressively pursuing growth opportunities to increase capacity, revenue, and margins.
The company positions itself as a premium option over its competitors, commanding a higher price point that customers are willing to pay because of their exceptional capabilities, top-notch quality, remarkable durability, stringent safety standards, easy maintenance, and ongoing innovations. While the major players in the heavy equipment manufacturing industry produce a diversified portfolio of heavy equipment, the company can distinguish itself by focusing on one specialized category.
The company employs a group of five key managers who oversee their respective departments and operate relatively independently. The ownership team is involved in big-picture decisions; however, the management team is fully capable of thinking independently and carrying the company into the future without the current ownership involved. The ownership team’s primary duties in the business involve legal, human resources, and marketing, which could be replaced by hiring one HR manager and one marketing specialist. The ownership team is looking to exit the business to retire after a reasonable and customary transition period.