This 60+ year established West Michigan-based Company sells, installs, maintains and calibrates equipment for niche industrial systems. The Company’s direct sales and service personnel serve virtually every industry from food and pharmaceutical to discrete manufacturing, agriculture, and distribution. Major customers include Amazon, Dematic, and Honeywell International.
The Company is closely allied with the primary manufacturer it represents, which provides the Company with a well-regarded brand/product, an exclusive sales territory, and an impressive array of marketing strategies. While the majority of the Company’s revenue is derived from direct product sales, service and maintenance work generates recurring revenue and represents a significant opportunity for future growth.
The Company operates out of 16,000+ sq. ft. facility and serves almost every industry!
One of the owners is nearing retirement age and seeks to transition. The other owner is interested in remaining with the company in a sales capacity for multiple years, if mutually desired post-transaction.
2018 Revenue: $11,076,000+
2018 EBITDA: $1,573,000+
Selling the Ideal Product – From a business perspective, the particular industrial equipment sold and serviced is a compelling product. There are several reasons why this is the case:
- The ubiquity of this equipment in industrial and commercial processes
- High value items, high margins – The Company’s gross profit is on average 32% of sales.
- Recurring revenue – The equipment must be routinely calibrated, repaired and serviced.
Top Salesman Retention – The Company’s top salesman is interested in staying on post-transaction for the next couple of years and potentially longer.
Focus on Service – For many years, the Company’s strategy has been to focus on sales almost singularly, leaving the service department far from reaching its potential. This does not have to be the case going forward. The current owners believe that they lack the passion and skillset to remake and motivate the service department. But, with the right leadership, the service department could not only be a significant profit center for the business, but an engine for driving future sales with existing customers.
Implement Sales & Marketing Strategy – The owners have been so busy with managing the day-to-day operations of the business that developing and implementing sales and marketing strategies has been virtually impossible. Improving advertising and developing comprehensive sales strategies could quickly generate more sales.
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