Highly Profitable Mold Manufacturer for Sale!

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, the 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 has averaged a Gross Profit Margin of nearly 50% of sales and a Net Margin of over 20% of sales.

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, 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. 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.

Financial Summary

2018E Revenue: $2,651,000

2018E EBITDA: $734,160

2018E SDE: $903,381

This well established Company drives consistently strong margins!

Estimated Equipment Value: $1,500,000

Estimated Real Estate Value: $1,000,000

Investment Highlights

High Margins and Repeat Business  –Due to the nature of this type of manufacturing, the end product is very expensive and so it can support high-margins. However, despite the quality of the tool and the considerations that goes 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 a consistent demand for high-margin projects.

Consistent Capex Reinvestment– The Company consistently reinvests in its facility and equipment. This reinvestment sets the Company up well for future growth, and will also serve as good collateral, should the Company’s next owner decide to finance the acquisition with debt. The real estate, which is anticipated to also be part of the transaction, has an estimated value of over $1MM. Total equipment value is estimated at $1.5MM.

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 suffered slowdowns but 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 sales person 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!

Calder Capital, LLC

Click to Call: 616-965-2771

Toll Free: 844-452-4445