Profitable West Michigan Tool & Die & Machining Business for Sale

This well-established Company specializes in manufacturing precision tooling, assemblies, fixtures and gages. The Company features a full-service machine shop with CNC and conventional turning, milling, complete grind department (surface, ID/OD and Jig) and wire EDM. The Company has developed a reputation for high-quality work especially when dealing with complex tasks and serves a wide customer base across the US. As the Company has many service offerings, many customers come to the Company to fulfill all tooling and machining needs. Additionally, the Company has built a strong customer base that generates growing recurring revenue.

Ownership has decided it is time to transition the business to new owners with a vision to grow and sustain the business for many more years to come.

 

FINANCIAL SUMMARY

TTM September 2018 Revenue: $1,436,727

TTM September 2018 Cash Flow: $564,986

 

INVESTMENT HIGHLIGHTS

Financial Stability and Flexibility: The Company generates very consistent growing revenues with increasing margins. Also, the Company is very healthy and financially flexible as it does not require debt to fund maintenance.

Recurring Revenue Model: The Company has a large base of repeat customers that provide consistent sales.

Revenue Capacity: The Company has several opportunities to grow revenue and profitability, with minimal investment, through increases in machinery utilization and additional staff.

GROWTH OPPORTUNITIES

Marketing Enhancement: The Company currently engages in little marketing. Implementation of a salesperson or other efforts such as online advertising could greatly increase customers and awareness of the Company.

Job Targeting: Utilizing a targeted marketing campaign to reach out to specific customers who are known to purchase a large quantity of services or high-margin services would likely be very successful. The Company has served its existing client base very successfully and comfortably but has never gone out and attracted more customers.

Job Selection: Management has recently begun to implement this strategy and has seen its benefits, but this strategy can be fine-tuned to choose only high-margin jobs while avoiding low-margin jobs or jobs with potential troublesome snags in order to maximize machine utilization time and profitability.

 

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 growing West Michigan Tool & Die and Machine Shop for sale!

Established West Michigan Machine Shop for Sale!

This opportunity is presently under exclusive letter of intent and cannot therefore be discussed. Please enter your information below to receive notice in the case that this opportunity again becomes available! Thank you!

Located in West Michigan, this 30-year-old machine shop specializes in custom fixture solutions and special materials machining, as well as having large-sized machining capabilities that few competitors can match. A broadly capable operation with 10 diversely skilled employees, the Company also offers a full range of services from machining to welding and final assembly. The business has 10 major pieces of equipment including four CNC machines and an assortment of smaller fixed assets.
The Company is owned by an individual who is not involved in the Company’s day-to-day operations, however is seeking to sell the business due to his increasing involvement in multiple other business ventures.

The real estate is owned by a related entity and is available for sale or lease.

machine-shop-for-sale-zeeland-michigan

The Company has an excellent core team of committed individuals who demonstrate high levels of responsibility, knowledge, and professionalism.

Financial Summary

2017 Revenue: $1,000,000

2017 Cash Flow: $280,000

Appraised Fair Market Value of Machinery & Equipment: $662,650 (2017)

machining-business-for-sale-west-michigan

Machining large components not only requires very large machining centers but skilled operators who can manually control them. Both of these assets serve as barriers to entry to other shops that might consider adding these capabilities.

Investment Highlights

Unique Value Proposition – The Company has two unique capabilities that differentiate it from other machine shops in the area.

Unique Materials Machining – Due to its flammability and processing requirements, few shops have the knowledge and expertise required to machine a variety of the materials that the Company handles. For decades, the Company has maintained the necessary customer relationships and tribal knowledge to effectively machine these unique materials.

Large Components – Machining large components not only requires very large machining centers but skilled operators who can manually control them. Both of these assets serve as barriers to entry to other shops that might consider adding these capabilities.

Functions Autonomously – The Company has an excellent core team of committed individuals who demonstrate high levels of responsibility, knowledge, and professionalism. It is this capable team and the systems and customer-base built over nearly three decades that enable the Company to run autonomously.

 

machine-shop-for-sale-in-holland-michigan

Due to its flammability and processing requirements, few shops have the knowledge and expertise required to machine a variety of the materials that the Company handles.

Growth Opportunities

Involved Ownership –With limited ownership involvement, the Company’s cash flow tends to ebb and flow with the demand generated by its long-time customers. The owner believes that a buyer who is able to be more involved in the daily operations of the Company could greatly improve its financial performance.

Unique Materials Machining – The Company’s ability to machine unique materials is a real differentiator from other machine shops. Emphasizing this capability could be a great way to grow the business. Currently, the Company is doing this type of work for a customer with locations across the country, so it is certainly not bound by geography.

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 have a brief introductory phone call with a broker. Inquire today about this established machine shop for sale in West Michigan!

 

I’m Interested!

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For this opportunity our client is asking for a little background on each buyer before releasing information.  Please briefly answer the three questions below:
 

Established Machine Shop With Proprietary Testing Product – West Michigan!

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. 

 

 
machine shop for sale west michigan

Company has the capability to manually machine, rebuild and grind large components for a specific industry.

Financial Overview

2017 Revenue: $1,200,621

2017 SDE: $284,708

 

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.

 
proprietary product manufacturer for sale west michigan

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.

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 us at info@caldergr.com 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!

Calder Capital, LLC

Click to Call: 616-965-2771

Toll Free: 844-452-4445