Business Description
Niche Metal Products manufacturing business with High Margins in Middle TN
The Company manufactures high-quality, niche metal products for applications in several end-markets including building products, commercial machinery, commercial automotive, and consumer products. With a 50-year history, the Company has developed a superior reputation as the manufacturer of choice for products with specialized requirements and critical delivery schedules. The Company’s quality program is certified under both the ISO 9001:2015 and AS9100 (Rev. D) standards, allowing them to pursue higher profit margin opportunities. Excess capacity in the current manufacturing program exists, creating an opportunity for a new owner to add scale without significant capital equipment investments. Identified as an essential business, impacts from the Covid-19 pandemic were moderate.
2020 Revenue of $1,221,174 with Adj. Seller Discretionary Cash Flow (“SDCF”) of $296,582, representing a 24% margin. 3-year Average Revenue and SDCF of $1.36mm and $394k, respectively.
Detailed Information
Inventory: Not included in asking price
Real Estate: Leased Building SF: 34,000
Employees: 5+
Facilities: 34,000 sqft of leased space inside an industrial park with additional flex space as required
Competition: High Barriers to Entry / Insulated Market Position: The Company has limited competition as a result of their machinery, tooling and equipment, which is specialized for their particular niche product.
Long-term Customer Relationships: The Company has developed long-term relationships based on a superb reputation for product quality, value-added service offerings and on-time delivery.
Growth & Expansion: Pursue new markets and channels for existing products and services. Enhance the business development effort for existing products and services. Expand product line by utilizing excess capacity in the current manufacturing footprint. Expand and promote the service line of value-added services.
Support & Training: Seller is committed to facilitating an orderly transition to new ownership and will provide support and training for a reasonable period of time
Reason for Selling: Retirement planning