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Business Valuation
Listing Details
Profitable Niche Manufacturing Company
Wisconsin
- Ad ID: 041510MI
- Category: Mfg. - Fabricated Metal Products
- Category: Mfg. - Industrial & Comm. Machinery
Financials
- Asking: $5.5 Million
- Gross Income: $3.5 Million
- Cash Flow: $1.1 Million
- Included in the Asking Price: Real Estate: $1.25 Million (included)
- Included in the Asking Price: Inventory: $300,000 (included)
- Included in the Asking Price: Furniture, Fixtures & Equipment: $500,000 (included)
Summary Description
This is an Established and Profitable Niche Manufacturing Company which designs, manufactures, and distributes a product line of high-quality, after- market replacement components for widely-utilized machines that are used in various industries including the agricultural, excavation, landscaping, and construction industries. The company is a vertically integrated manufacturer with 95% of the products sold being designed, engineered, and manufactured in-house. The products are vital after- market components for machines built by OEM's that are too large to be concerned with producing these replacement parts for customers. Furthermore, this Company has a long history of strong financial performance stemming from its reputation for delivering its high quality after-market components to end-users substantially faster than its competitors. Products are primarily sold through an established distribution network of approximately 1,000 dealers located in the Midwest, with these dealers being serviced by the Company's well-trained outside sales force.
This is a phenomenal opportunity with a solid foundation to build on that has only been restrained by the current owner's aversion to risk and growth. The Company's operations feature experienced employees with superior knowledge of the product line and all the equipment utilized in production. The Company also features a seasoned sales staff with well- established dealer relationships. There is ample capacity to substantially expand production or to produce another product line without material capital investment. Considering the current operational efficiencies, large capacity to handle growth, experienced sales force, growing industry and untapped new geographical markets available to bolster sales, this Company is ready to be taken to the next level.
General Information
- Year Established: 1999
- Employees: 22
- Facilities: Business is currently situated in three industrial buildings with an aggregate of 38,000+ Sq. Ft. built on 12+ Acres of total land. Both properties are close in proximity to each other and are located in communities close to metropolitan areas. All office equipment, furniture and fixtures, fabrication equipment, job trucks, and selected motor vehicles are included in the sale of the business. All equipment is suitable for the business.
Market Outlook
- Competition: There are five major competitors in this industry, though the majority of competition continues to come from the OEM's manufacturing the machinery. Of the five competitors, two are located in the Midwest, though both of these competitors have recently been struggling for various reasons, thus allowing for the Company to increase its market share within its geographical market area and maintain profitability even in this current economy.
- Growth and Expansion: Company is the industry leader in Wisc., and it continues to gain market share in Illinois, Minn., and Iowa. Furthermore, there is opportunity for expansion into new geographic markets utilizing national sales reps and expanding the current geographical markets served. Members of the outside sales force are capable of training new sales people to work in these new markets. Because of the quality of the manufactured products and growing demand for the product line, there are substantial growth opportunities for the right Acquirer.
About the Sale
- Financing: Potentially Available for Qualified Buyers.
- Support/Training: Ownership is willing to transition out of the business in a manner to help ensure that the acquirer retains the current distribution network and the company's reputation for high-quality work.
- Reason Selling: Retirement to Warmer Climate.
Contact Information
Rajiv Singh
Trico Ventures, Inc.
Phone: 630-799-8288
Fax: 866-548-5512
Email: rajiv@tricoventures.com