This business opportunity is a marketer and distributor of specialty fasteners and fastening supplies to contractors specializing in industrial, commercial, and institutional construction. Established in 1978, the Company has remained under the sole ownership and operation of the Founder, who worked for another large fastener supplier for eight years before starting the Company.
For its 40+ years in operation, the Company has remained loyal to its mission statement of putting the customer first above all else. This approach has earned the Company respect in the construction industry in Southeast Michigan, which has enabled the Company to supply fasteners to contractors involved with high-profile building projects in the area.
The Company operates out of a 4,000 square foot facility, which is owned by the Founder and his spouse and leased to the Company through a real estate holding company. The Owner is willing to be flexible with either the sale or lease of the Company’s facility.
Having been the sole operator of the Company since its founding, the Owner is seeking to sell the Company to retire. This would make an excellent opportunity for an individual owner-operator to live their dream of business ownership, or for a strategic buyer seeking to tap into the SE Michigan marketplace and 40+ years of solid customer relationships.
2020 Inventory: $376,895
Real Estate: Owned by the Company Owner and leased to the Company through a real estate holding company. The Owner is flexible on selling or leasing the facility to a new owner.
2020 Rent: $26,580
Total Building Size: 4,000 square feet
Seller Financing Available: Yes
Seller Note: Limited Seller-Financing Available for Qualified Buyers.
Number of Employees: 3 full-time (including Owner) / 2 part-time
Year Established: 1978
Facilities: 4,000 square foot facility owned through a separate real estate holding company.
Support/Training: Ownership is willing to provide reasonable and customary transition assistance.
Reasons for Selling: The Owner would like to retire.
(1) Strong and Consistent Financials: As a designated essential business during the pandemic, the Company boasted peak financial performance in 2019 and 2020. The Business has produced impressive top-and bottom-line performance by executing stable operational efficiencies: robust systems, skilled personnel, and a diverse customer base. The Company has steadily grown over the past decade while maintaining consistent margins. In addition, the Company has no long-term debt and minimal short-term debt, resulting in high liquidity within the Company.
(2) ERP System: The Company operates using a perpetual inventory system that creates reports showing the Owner and staff the items that need to be ordered from which vendors to keep the Company’s shelves stocked. This Enterprise Resource Planning software also keeps track of the general ledger, payroll, accounts payable, accounts receivable, and inventory, making operations more efficient and lucrative.
(3) Physical Southeast Michigan Location: The Company benefits from a Southeast Michigan location with prime access to large industrial, commercial, and institutional construction projects. Breaking into this region can be difficult for new companies and even existing companies that do not yet have a physical office or business presence in the area. A physical location in the Southeast region of Michigan presents an investor the opportunity to connect with eminent prospective customers.
(4) Well-Known Projects: The Company has worked with some of the most reputable contractors and projects in the Southeast Michigan area and has fostered these relationships since the founding of the Company in 1978. The Company’s distribution of fasteners and other fastening supplies has helped construct many facilities and manufacturing processes in the area.
(1) Online Presence and E-Commerce Exposure: The Company currently lacks an online presence, and while it has a functional website, the site needs updates, particularly to its Search Engine Optimization and other best practices. While the Company has excellent organic growth, a more optimized and robust online presence could enable the Company to attract more traffic and increase its outreach. This will result in a greater top-line with little investment necessary.
(2) Grow the Salesforce: The Company generally runs on its long-standing relationships and reputation. There are plenty of opportunities to increase sales by expanding the Company’s strategies with the objective of procuring new customers and recapturing customers for return. Hiring additional sales personnel could help widen the customer funnel, allowing more business to be captured. The benefits of additional sales personnel could boost performance rapidly while outweighing the cost.
(3) Expansion into New Markets: The Company has a well-established reputation with a network of recognizable customers that are loyal to the Company. However, the Company has limited exposure regionally and primarily operates in the Southeast Michigan area. Expanding into new markets could help minimize risk and expose the Company to prospective business that can increase the Company’s revenue. The Owner believes expanding into markets that the Company is not well exposed to yet is vital – this includes but is not limited to the machinery installation and steel erecting markets.
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