Established in the late 1990s, this consistently profitable and stable Company offers a broad array of machining services to its customers. Additionally, the Company sells its own patented testing products. These products represent a significant growth opportunity as these are the only such products on the market. This Company is the most recent iteration of a machine shop that has been in continuous operation for decades. It has weathered numerous regional economic downturns, deep national recessions, and the transformation of entire manufacturing industries and processes. Ownership has been successful putting in place the people and systems to allow them to largely remove themselves from the Company’s day-to-day operations and monitor its performance remotely.
The real estate is owned by the corporation and available for sale. It consists of a 22,000 square foot facility well-located between two metropolitan areas.
There are a total of 6 employees not including the two owners. The owners are retired and live out of state. They check in with the business from time-to-time, however do not participate in the day-to-day operations.
Financial Overview
2017 Revenue: $1,200,621
2017 SDE: $284,708
Company has the capability to manually machine, rebuild and grind large components for a specific industry.
Company has the capability to manually machine, rebuild and grind large components for a specific industry.Investment Highlights
Core Niche – Company has the capability to manually machine, rebuild and grind large components for a specific industry. This is a competitive advantage that is maintained not only by the large equipment required to do such work but by highly skilled machine operators who have logged hundreds of hours doing this unique work that is impossible to automate.
Limited Competition – During the last recession, many two and three-man machine shops in the area went under, allowing the Company to grow its market share.
- The Company manufactures and distributes its own proprietary testing meter. Huge opportunity for growth! (Note: stock photo. Not actual testing meter.)
Growth Opportunities
Patented Testing Products – Existing customers of the Company’s testing products include 3M, DuPont and many other smaller manufacturers. The patent on this product is good for another 15 years and all sales thus far have been generated by word-of-mouth. It is estimated that a strategy to more actively market and sell these products could triple sales, which currently stands at about $300,000 per year.
Sales/Marketing – Company does not engage in any sales or marketing efforts. This reflects the owners’ conservative approach to growth and the limitations of their skill sets. While it has certainly not prevented the Company from being highly successful, more rapid growth will require a more aggressive strategy for developing business and acquiring new customers.
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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 us at [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few brief questions. Inquire today about this established West Michigan machining shop for sale!
