This opportunity is a vertically integrated certified metal fabricator in Indiana that largely does product-based contract manufacturing but also does bid on enclosure manufacturing jobs. The Company offers an array of fabricating services to develop unique internal processes that satisfy each customer’s individual needs. The customer base consists of long-term relationships formed through manufacturing agreements with many companies across a broad spectrum of industries. With its current sophistication and diversity of equipment, the Company has an estimated revenue capacity of $20.0M.
The Company was founded nearly 50 years ago and remains family-owned. The current owners desire to sell the Business because they believe a new owner with tenacity and enthusiasm could benefit more from it. There are currently two owners and their son within the Business. One of the owners and the son are involved on a full-time basis, while the other owner is in a passive role. The active owner’s role encompasses leading the management team by offering guidance and support, developing Company’s strategy, and overseeing financial activities. The owners’ son is involved in guiding the management team, operational coordination, and sales pricing.
Both owners and their son are willing to remain employed by the Business for a period of time post-transaction under the right conditions and compensation.
The Company’s facility is owned by an unrelated Business entity and is leased to the Company.
June 30, 2022 TTM Revenue: $7,621,874
June 30, 2022 TTM Cash Flow: $335,171 (SDE)
June 30, 2022 Inventory: $898,707
May 2022 Appraised Equipment Value: $3,429,900
Number of Employees: Core group of approximately 46 employees (12 salaried) (including the owners and their son).
Facilities: The Company operates out of facilities totaling 130,000 square feet. 125,000 square feet are dedicated to the Company’s manufacturing operations, while the remaining 5,000 square feet is office space. The land is approximately 10 acres. The Company’s premises are owned by an unrelated entity.
Support/Training: Ownership is willing to provide reasonable and customary assistance during the transition period. Current ownership is open to remaining employed by the Company for a period of time post-sale of the Business. A replacement for one of the two owners is needed. There also needs to be a replacement for their son.
Reasons for Selling: Ownership believes a new leader with tenacity, enthusiasm, and ambition is the best direction for the Company.
(1) Current Automation: The Company has heavily invested in automating the fabrication process. To offer its customer the advantages of precision, quality, consistency, and cost reduction, the Company has sought after the latest automated laser load/unload, bending, and welding systems. Each system can be used to develop unique internal processes that help the Company serve its customers in the most efficient way possible.
(2) High Quality and Safety Standards: The Company possesses ISO 9001:2015 and other vital industry-specific certifications. Being certified means the Company has an assumed reputation of quality and precision by customers. Having these certifications unlocks a host of large industrial customers who require vendors to be certified in certain areas. The certifications are essential for metal fabricators to ensure the utmost quality and safety management, especially for enclosures.
(1) Investment in Further Automation: Further investment in automation can prove useful to the Company by addressing labor issues affecting the industry and greater economy. Additionally, automation can handle the more dangerous, dirty, and dull functions of the metal fabrication process. Doing so could enhance worker safety, increase efficiency, and reduce fatigue. Likewise, newer industrial robots equipped with sensors and software allow for tracking work-related data, enabling management to make more effective decisions.
(2) Add a Second Shift: To retain labor workers, the Company currently works a 4-day, 40-hour workweek with no forced overtime. Consequently, employees have been reluctant to participate in overtime. This opens a possibility of a 3-day workweek with a second shift of employees. This is advantageous because the Company may continue production without incurring the additional variable cost of overtime. Furthermore, the Business may address bottlenecked or underutilized areas.
(3) Target Customers Through Tradeshows: As it currently stands, the Company attends no trade shows. Attending trade shows can benefit a company by increasing brand awareness, forging new business relationships, analyzing competitors, and further educating employees about the industry and new technologies. Additionally, the Company can target new leads with its outsourced marketing methods.
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