It has been a great 25 (+) year run for the two founders/owners of this successful mid-Michigan steel fabricating business; however, it is now time to transition their business to only the second owners in the company’s history.
Located in an attractive late model building (owned by the sellers and included in the sale) built expressly for the business, the 35,000 square foot facility resides on a 10 acre campus in a desirable community just minutes from a major interstate exchange.
With a skilled, non-union work force, the company has a number of profit centers including (a) design and build using 3-D technology; (b) steel fabrication; (c) metal forming; (d) welding; (e) machining; (f) heavy equipment repairs; and (g) special products for industry, to name several. The management team has proved itself to be very capable, successfully managing the business during an extended absence of one of the owners. The 35 full-time employees are augmented with temporary workers on an as needed basis.
The past three years, the business has averaged $4,500,000 in revenues with an average $1,000,000 SDE (the historical, normalized cash flow available to pay an owner/operator and service debt). This company is rich in fixed assets with an estimated $2,000,000 (value in place) of equipment included in the sale. Also included in the $5,950,000 listing price is a six figure inventory and the company’s $2,000,000 of real estate. An asset sale is contemplated with the sellers retaining cash and A/R while retiring all liabilities including the mortgage on the real estate.
The business has a diverse customer base with limited sales to the automotive industry. The attractive customer list does not have any customer concentration. Strong growth opportunities would seem to be plentiful given (a) the business operates only a single shift; (b) the vast array of equipment allows for a myriad of manufacturing opportunities; and (c) new business activity is currently limited to a combination of word-of-mouth and a single captive salesman.
The sellers have been very successful, and as such are willing to consider for strong buyers a generous seller note on the business and/or a meaningful land contract on the real estate. Additionally, the sellers are willing to adjust their post-close tenure to accommodate the transition needs of the successful buyer.
For more information about this exciting and profitable opportunity please contact Joel Hekler at firstname.lastname@example.org or reach him on 517-719-6401