Established Laser Cutting Manufacturer for Sale!

The Company is a market leader in the Greater Western Michigan region for 5-axis laser cutting and welding services. Laser welding and cutting significantly decreases the time and manpower required to produce many complex parts and delivers extremely high levels of precision, while remaining cost efficient. Most frequently, the Company’s customers are seeking these services for automotive, aerospace parts manufacturing, and processing of hydro-formed, roll-formed, tubular and stamped parts requiring holes, cut-outs and out perimeter trimming, whether it be for prototyping or large production requirements.

Additionally, the Company offers sheet metal fabrication services. The Company is NADCAP and ISO9001 certified and already has a management team in place.

In the owner’s words: “The core competency of the Company in this industry and technology has always been its ability to process 5-Axis products accurately and consistently with minimal start up time and at a competitive price. We work closely with our customers to solve some very challenging problems for many difficult parts. Our fabrication services are becoming ever more specialized in creating delicate and cosmetically appealing products, such as scratch free stainless panels.”

Historically, the Company has performed well and consistently generated strong cash flows. A series of unfortunate events, including the sudden death of a key employee, caused the Company to stumble a bit in 2018. The Company is already well along the process of returning to historical profitability and stability in 2019. Demand for services remains high, and both the laser cutting & welding and metal fabrication departments have potential for growth. Due to the Company’s work within the aerospace and defense industries, the Company operates and is managed with a level of sophistication and excellence that is rarely found in a business of this size.

The Company operates out of 28,000+ sq. ft. leased facility and serves many industries!

The Company obtained a Certified Machinery & Equipment Appraisal in July 2018. The total fair market installed value of the equipment is $669,000.

The main stakeholder in the Company wishes to sell to focus on other business interests. The other minority owner works as the general manager and would like to provide expertise and stay in a management role for the next 8 – 10 years. 

Financial Summary

2019 Projected Revenue: $3,828,000+

2019 Projected EBITDA: $366,000+

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Investment Highlights

Committed Leadership  – The Company’s General Manager maintains a minority ownership stake in the Company. His leadership abilities, customer relationships, and industry knowledge are all considerable assets to the Company and its next owner, assuming they would wish for him to stay on post-transaction. Ideally, he would like to stay in a management role for the next 8-10 years. Additionally, the company has a full-time Controller with 27 years of experience.

Core Competency in a Critical Technology – The precision levels and edge quality achieved with laser cutting machines are better than traditional cutting methods, as the laser beam does not wear during the laser cutting process. Laser cutting technology also enables the Company to cut complex shapes without the need for tooling and at a similar or faster speed than other cutting methods. The result is that the Company can save its customers time and money.

Certifications – The Company is both NADCAP Accredited and ISO 9001:2015 Certified. NADCAP is an aerospace and defense industry accreditation that is process specific and considered even more stringent and difficult to obtain than IS09001. In addition to improving the Company’s reliability and quality, NADCAP accreditation is a powerful sales and marketing tool and opens the Company up to additional markets.

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Growth Opportunities

Lean Manufacturing – The Company has been optimized for manufacturing quality and reliability. While the Company works toward efficiency, the Company could benefit from a new owner with lean manufacturing knowledge and experience, or with the resources available to invest in process and plant optimization. This would serve to boost capacity and please customers by reducing lead times. Another option would be hiring a continuous improvement expert.

Insource Additional Capabilities – Many of the jobs that the Company takes on require further machining and finishing after the Company has done its cutting, welding, and/or sheet metal fabrication. Investing in the expansion of manufacturing capabilities of the Company may be an excellent means of unlocking new revenue streams and boosting profitability. Based on the work the Company quotes on and outsources, the following would all be investments worth considering:

  • CNC Machining and Tapping
  • Upgrade from C02 Laser to Fiber Laser
  • Turret Presses
  • Resistance Welder
  • Spot Welder
  • Powder Coating Station
  • Second Press Brake
  • Waterjet

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 Multi-Axis Laser Cutting Manufacturer for sale!

Profitable & Diversified Metal Fabricating and Machining Company For Sale (Under LOI)

This Company is under exclusive LOI and therefore unable to be discussed. Please fill out the form below and we will contact you if it again becomes available. Thank you!

Established in West Michigan over a decade ago, this Company assists businesses throughout the region in the development and manufacturing of fabricated metal solutions, machined parts, and assemblies. The sellers, who typically work thirty to thirty-five hours per week, refer to the Company as a “Money Making Machine” and rightfully so. However, instead of simply pulling money out of the business, they have re-invested in equipment and expansion to help ensure the Company’s long-term success.

While the Company specializes in sheet metal fabrication, its wide array of internal equipment and capabilities enable it to solve numerous and complex manufacturing challenges for its large and ever-growing customer base. These customers include manufacturers in the furniture, industrial technologies, lighting, and OEM industries.

This is a very profitable and stable business, with diversified and long-standing customers and loyal, reliable employees. Both characteristics are the direct result of the Company’s unwavering commitment to ethical behavior and excellence.

The sellers have reached retirement age, but are open to staying on with the Company post-transaction to assist with the transfer of knowledge and relationships.

Financial Overview

2017 Revenue: $1,500,553

2017 Cash Flow: $543,637

 

This is a very profitable and stable business, with diversified and long-standing customers and loyal, reliable employees.

Investment Highlights

Substantial and Strategic Reinvestment
Since 2010, the Company has invested nearly $1M in an expansion, equipment purchases, and upgrades. The Company is perfectly positioned for continued growth and success with minimal investment.

Total Customer Solution is a Competitive Advantage
The company sets itself apart from the competition by offering a suite of customer solutions, from design through finished products/assemblies. Additionally, the Company offers design/engineering support and its manufacturing capabilities include sheet metal and machining, which few competitors in the area offer to the extent that the Company does.

Broad, Diverse, and Loyal Customer-base
The Company’s customer base is comprised of over 300+ customers from diverse industries. Its top four customers (which comprise 65% of total revenue) have all been doing business with the Company for at least 10 years.

Proven Sales Reps
Although sales reps are rare among small manufacturers in West Michigan, the Company has nurtured several loyal reps that consistently send high-margin work to the Company. Two of these sales reps are from outside of the West Michigan region, adding geographic diversity to the Company’s customer-base.

Since 2010, the Company has invested nearly $1M in an expansion, equipment purchases, and upgrades. The Company is perfectly positioned for continued growth and success with no/minimal investment.

Growth Opportunities

Invest in Turret Press
Acquiring a turret press (low-cost metal punching instead of laser cutting) would help the Company go after some “cost sensitive” customers. The facility could be expanded to accommodate such a piece of equipment.

Pursue Additional Complex Work
Go after more business that involves not only sheet metal fab but also machined parts to be assembled/welded. This business is very profitable because not many fabricators in the area can do it in a timely manner with a sufficient level of quality.

Custom One-off Projects
Local furniture companies outsource their work for trade show booths and prototype development. With the addition of the right person, this could become a nice opportunity/niche for growth.

 

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 confirm with the owner and then 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 profitable metal fabricating and machining company!

Calder Capital, LLC

Click to Call: 616-965-2771

Toll Free: 844-452-4445