High-Margin CNC Machining, Milling & Broaching Shop

This Company is a medium-to-high volume CNC machine shop with strong ties to the growing and lucrative full-size truck manufacturing market (60% of volume). As a skilled machining company, the Business has managed numerous projects in every area of CNC turning, CNC milling, heavy-duty machining, and broaching. High-quality products, on-time delivery, and under budget execution are enforced from the top-down throughout the truck and oil & gas manufacturing industries. The Company offers plenty of resources (including its longstanding relationships amongst customers, suppliers, and years of industry experience) to provide outstanding quality, effective project management, and on-time delivery to its customers. This commitment has earned them much respect. This respect has translated into loyalty from customers, suppliers, and employees.  

Additionally, the Company prides itself on managing entire product launches from conception, quote, fixture design and build, gage design, launch, Product Part and Approval Process (PPAP), and production. For example, this ability allowed the Company to develop proprietary processes for its two largest customers which effectively bind these customers to it.  

Innovative processes, the ability to pivot, and commitment to quality have put the Company ahead of the competition. The Company has implemented creative engineering techniques to keep overhead low. With Long-Term Agreements (LTAs) and proprietary processes for two major customers, the Company is positioned well emerging from COVID.  

The Owners (husband-49% and wife-51%) founded the Company in 2002 and built a strong foundation that operates today. They have spent many years in the Business and are ready to move on to devote time to family. Additionally, one of the Owners is looking to invest more time into another business venture. The Owners are flexible to help the new owner(s) in the transition process.   

Buyers will be required to have a minimum of $600,000, solid credit, and preferably industry experience to qualify for SBA 7a financing.  

Additional Information

2019 EBITDA:  $867,270 

2019 Inventory: $167,498 

Real Estate: Owned – The Company owns the facility. The real estate is available for sale or lease as part of the transaction. 

Rent: The Company currently does not pay rent each year/month for the facility. 

Total Building Size: 40,000 sq. ft. 

Seller Financing Available: Yes 

Seller Note: Limited Seller-Financing Available for Qualified Buyers. 

 Number of Employees: 13 (4 full-time/9 hourly)  

Year Established: 2002 

Facilities: The Company owns the 40,000 sq. ft. facility.  

Support/Training: Both Owners are willing to assist the new owner(s) in a reasonable transition period. They are happy to help and make sure the transition is successful. 

Reasons for Selling: The current Owners have spent many years working within the Business. They are looking to reduce their time commitment to focus on spending time with family.  

Investment Highlights

Stable and Cross-Trained Workforce: Multi-skilled, experienced, creative, and ingenious accurately describe the Company’s workforce. With multiple individuals able to fulfill many different roles, the Company is much more flexible than the competition.   

Exceptional Quality System: The Company has clear quality objectives that keep it focused on executing strict quality goals. This prioritization of quality alongside regimented equipment calibration and standardized training procedures ensure quality execution remains high.  

Tailored and Quick Customer Responsiveness: The Company’s versatile and cross-functional staff has a proven track record of answering customer questions quickly and effectively. As a result, customers are incredibly responsive in return when working alongside the Company. 

New/Updated Equipment Base: Shortly after the Company’s founding, the Owners began investing in new equipment to improve its capabilities. Most of the equipment owned by the Company is from 2011 or newer. 

Long-Term Contracts with Top Customers: With many lucrative long-term contracts amongst industry leaders, proprietary processes, and a favorable outlook for these long-term contracts, the Company is positioned well looking forward. 

Growth Opportunities

Develop a Sales Force: The Company has not invested many resources into sales. By implementing Search Engine Optimization (SEO) or Google AdWords, improving the Company’s website, or hiring dedicated salespeople, the Company could see a massive improvement in sales 

Leverage Customer and Supplier Relationships: Favorable long-term relationships with the Company’s top two suppliers could provide the Company with a unique opportunity to pursue sales pushes with these companies. With quoted projects able to start soon with potential and current customers, the Company is confident in the increasing potential to drive more sales through these channels.  

Diversify Customer Base: While the Company has developed its niche in the automotive, commercial, and oil & gas industries, there is massive potential to bring this expertise to a more diverse set of customers. For example, the Company could form a partnership with a metal casting company to provide highly customized casting for durable goods across the aerospace, mining, and construction industries.  

Utilize Excess Capacity: The Company’s automotive equipment has 25% to 30% excess capacity and the oil & gas equipment has 35% to 40% excess capacity. Fully utilizing the Company’s advanced equipment base to fulfill this excess capacity could realize large revenue increases.  

 

The BEST way to receive confidential information about this opportunity is to fill out the form below.

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 few questions related to their background and interests. Enquire today about this High-Margin CNC Machining, Milling, and Broaching Shop for sale!

Financial Performance

  • Year End Dec 2019 Revenue

    $2,926,959

  • Year End Dec 2019 Adjusted EBITDA

    $1,094,947

  • Equipment Value

    $2,461,689

  • Real Estate Value

    $500,000





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