This opportunity is a niche light manufacturing business for sale that offers B2B services to the automotive and education industries. The Company performs approximately 98% of its work in-house and outsources a small percentage of its work for specialty finishing processes. The Company’s customers predominately lie within the automotive and education industries and have been customers since the origination of the Business. The Company is ISO 9001:2015 certified and over the prior three years, the Company has implemented numerous new systems and production processes in order to increase operational efficiency and reduce waste byproducts.
The Company was founded over 30 years ago and was purchased by the current owner in 2019. The owner has transitioned into a passive role by hiring a Vice President of Operations to absorb their previous duties. This could allow for a seamless transition, as new ownership could remain passive in the Business. The current owner wishes to disconnect from the Business soon due to familial reasons; however, is willing to remain on board for a reasonable transitory period to train new ownership.
The Company’s current facility is leased from an unrelated, third-party landlord. The Business expanded into this facility within the last 10 years and has a definitive lease agreement extending through 2029. Located near the Company’s current facility is an additional facility available for lease from the Company’s current landlord, which presents an opportunity for expansion should new ownership desire to do so.
Number of Employees: 31
Year Established: 1989
Facility: The Company’s current facility includes approximately 54,000 square feet of production space, where all operations related to the customers’ services are performed. The Company has been located within the current facility since 2014 when the previous space was outgrown. The facility is leased from an unrelated third-party landlord, and there is a lease agreement extending through 2029. Located adjacently from the Company’s current facilities is additional square footage available for lease from the same landlord, should new ownership desire to pursue further expansion.
The Company has exclusive use of one dock door and shared usage of a second for the convenience of shipping and receiving. Attached is office space furnished for the Company’s leadership team and the comfort of executives visiting from customers. The facility has undergone recent improvements, such as a partial replacement of the roof housing of the production space in 2020. This was installed at the expense of the landlord.
Support/Training: Ownership is primarily passive, having hired a Vice President of Operations in 2021 to lead the day-to-day operations of the Company and effectively replace the owner. However, the owner is willing to serve as an active consultant throughout the transition process if new ownership desires.
Reasons for Selling: The current owner wishes to divest the Business quickly for personal reasons. Presently, the owner has focused their attention upon family matters that are taking up a considerable amount of time.
(1) Constant Innovator: This niche manufacturer for sale is differentiated from competitors by consistently implementing new, developing technologies within its industry. The implementation of high-efficiency production and application systems, coupled with a waste reduction program, has earned the Company numerous awards in recognition of the Company’s abilities and processes.
(2) Exceptional Quality Management: The Company has earned and upholds the international quality management standards outlined within the ISO 9001:2015 certification. This certification provides additional advantages for the Company, as many customers require projects to be completed by an ISO-certified vendor. In addition, the Company prioritizes exceeding every customer’s expectations, which has been demonstrated by earning the ISO 9001:2015 certification.
(3) Commitment to Excellence: Within the Company’s production processes, numerous touchpoints have been incorporated to grant the Company and customers greater insight into orders and production. These technological systems grant the Company transparent access to real-time data to aid decision-making while providing instantaneous updates to customers.
(4) Sustainable Competitive Advantages: Current ownership has diligently worked to increase operational efficiency through internal processes, in order to create sustainable advantages. In addition, the Company’s services are primarily utilized by customers within the automotive and education industries. Therefore, the Business’ Michigan-based location grants a substantial geographical advantage when it comes to serving automotive customers. The Company is able to complete these customers’ projects in less time with reduced transportation costs.
(1) Implement 3rd Production Shift: Presently, the Business operates on two production shifts, leaving idle capacity within the Company’s current machinery, equipment, and facility. Ownership estimates that the Company is currently only utilizing approximately 50% of the Company’s production capabilities, leaving significant potential for top-line revenue growth without requiring any significant capital expenditures.
(2) Expansion of Service Offerings: There are opportunities for the Company to provide adjacent services to the ones it already provides. Introducing related service offerings such as these could create potential for the Business to upsell current customers and better fulfill their needs.
(3) Increased Sales and Marketing Efforts: The Business’ revenue is driven by long-standing relationships with customers. The Company has a very limited marketing budget, as current ownership has primarily placed their attention on cementing and maintaining the Company’s outstanding relationships. Therefore, expanding the Business’ sales team and allocating resources toward increased marketing efforts could provide opportunities for the Company to attract new customers and craft new industry relationships.
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