Well-Established Mold Manufacturing Business!

If you are seeking a time-tested and strongly profitable manufacturing company in Michigan, do not miss this opportunity. We do not see companies this nice very often!

From its 18,000 sq. ft. facility in Southwest Michigan, this Company designs, builds, and repairs molds for the diecast industry. The manufacturing precision, long-standing customer relationships, and industry-specific knowledge required to do this work eliminates many other tool & die shops in the region from competing with the Company. These barriers to entry enable the Company to charge a premium for its services. Over the past several years, the Company’s gross profit margin has been between 48-53% and a pre-tax income ranging from 25% to 33%. The Company expects 2020 to finish out strong.

Over its three decades of operations, the Company has experienced many different economic environments. Thanks to the low-overhead business model of the Company and its nimble size, it emerged a stronger organization with each test. Buyers interested in this Company will be pleased to find that this tested and proven Company has an extremely knowledgeable team of 12 employees, desirable customers, and a facility and equipment that have been consistently reinvested in.

The company operates from a very well-maintained 18,000 sqft facility that includes 2,000 sqft of office and 2,000 sqft of storage. Major improvements were made in 1991, 1995 and 2014. The real estate, which is also anticipated to be part of the transaction, has an estimated value of approximately $1MM. The seller is willing to entertain a lease at $100,000/year on a triple net basis, provided the lease is for a minimum of 3-5 years.

Current ownership is motivated to sell as a partner desires to retire, although the remaining partner would be willing to stay on for multiple years post-transaction if desired.

Investment Highlights

High Margins and Repeat Business  – Due to the nature of this type of manufacturing, the end-product is costly and so it can support high margins. However, despite the quality of the tool and the considerations that go into its design, after thousands or tens of thousands of cycles, it will need to be repaired, rebuilt, or replaced. So, although the Company typically does low volume work, it can count on consistent demand for high-margin projects.

Consistent Capex Reinvestment – The Company has invested in high-quality equipment. Although the current owners often purchase new equipment for tax considerations, the existing equipment may serve a new owner well with modest investments in equipment for a few years. The equipment will also allow a buyer to provide collateral support for a loan if needed to finance the acquisition with debt. The equipment was appraised in February of 2020 at $1,631,000.

Growth Opportunities

Grow Business with Existing Customers – Over the years, the Company has worked with many businesses throughout the state and beyond. Several of these customers who suffered slowdowns are now on track to perform much better. Reaching out to these previous customers would be a simple and low-risk strategy for growth.

Expand Sales Team and Marketing Efforts – The Company’s owner is the only salesperson, and the Company engages in virtually zero marketing efforts. Quoting jobs for existing customers and managing those relationships provides the Company with more than enough work. However, adding a dedicated salesperson to reach out to new potential customers would be a great way to grow the business and diversify its customer base.

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. Inquire today about this Highly Profitable Mold Manufacturer for sale!

Financial Performance

  • Year End Dec 2019 Revenue

    $2,782,166

  • Year End Dec 2019 SDE

    $1,005,984

  • Equipment Value

    $1,631,000

  • Real Estate Value

    $1,000,000





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Calder Capital, LLC