Very Profitable Niche Specialty Manufacturer

We are pleased to introduce you to a strong cash flowing light manufacturing business opportunity strategically positioned in a highly specialized niche market. This business combines art with science and sells both goods and services, with many clients utilizing both. This is a B2B operation which allows for predictability, organizational structure, and accounting straightforwardness. There are close to 10,000 potential clients for these goods and services in the US alone. The competitive landscape is quite small due to (a) the high cost of entry, (b) the expertise required by employed craftspeople, and (c) the tactical alignment of people, process, and product creating opportunities with highly desirable clients.

This business produces a product rated the highest in the industry by producers and end users alike. The computers, trained staff, proprietary technology, and equipment (cost in the high six figures) used to produce the product solidifies a loyal client base and creates a huge barrier to entry for potential competitors. The staff has decades of experience and tenure. Many of the clients, which are primarily US based have been loyal customers for a decade or more. Additionally, the business boasts equipment redundancy avoiding possible downtime while enabling the business to expand production throughput.

The staff is highly trained in multiple software programs and well versed in the company’s procedures. The service level is unmatched in the industry, with many clients receiving one or two day turnarounds. The entire process is controlled by internal and external sets of KPI’s with quality checks throughout the process. Successful client audits have been passed and logged. The equipment preventative maintenance is adhered to and is under service contracts through equipment manufacturers and/or expert third party contractors.

The company boasts a client list of “who’s who” spanning across many end user segments. The nearly 10,000 square foot leased facility is squeaky clean and configured to optimize the production process with allowances built in for expansion and/or reconfigurations. The company’s integrated approach to building the business has been rewarded financially with an impressive three-year average SDE (seller’s discretionary earnings – the annual cash flow of the business available to pay an owner-operator and service debt) of $775,000. Revenues during the same 2021-2022-2023 three-year period averaged $2.25 million.

The $3,095,000 list price of the business is based on a 4.0x multiple of SDE: 4.0 x $775,000 = $3.1 million. The seller envisions an asset sale in which the cash and A/R are retained while all liabilities (current and long-term) are retired. The buyer receives all fixed assets, all inventory, and of course the goodwill of the business. For a qualified buyer, the seller contemplates carrying a generous six figure seller note.

To learn more about this outstanding, niche manufacturing business opportunity, please contact Mike Greengard ([email protected]) or at 616-450-0707. Many details to follow after submitting an NDA. Included will be owner(s) reason for selling, current market, CRM possibilities, potential expansions, corporate tax returns, detailed internal financial statements, etc.