Very Profitable Manufacturer of CNC Machining

The company is a contract manufacturer of CNC services for a wide array of custom components.

In business for more than 20 years, the company operates out of its own 20,000+ sq ft facility and has invested over $6M in equipment in past few years, including recently completed upgrades totaling $1.4M.

The company services customers in luxury vehicle sector of automotive, healthcare equipment, analytical sciences, test & measurement equipment among other verticals.

In-house services include CNC lathes, CNC turning center, and other secondary operations. Other finishing services, including passivation, anodizing and plating are performed through an established network of certified partners. Current capabilities include numerous other high value added services.

Company is AS9100 and ISO9001 registered.

The opportunity is to acquire a 100% equity interest in a manufacturer with a strong reputation for quality workmanship and customer service.

The company believes its internal culture differentiates it from competitors through training and staff development, while promoting an environment of collaboration and customer service. Average FTE tenure is 6.5 years.

Having founded the company over 20 years ago, the owner wishes to retire and pursue other interests.

Company services customers throughout North America.

The owner will offer transitional support as required by the transaction.

Attractive Financials: Company achieved 15% YoY top-line growth and 35%+ gross margins ?18-?19.

Average Three-Year Adjusted EBITDA: $1,461,912

Strong COVID-19 Recovery: Backlog and purchase order trends indicate revenues returning to $5M+ for 2021 and margins consistent with ?18 and ?19.

Diverse Customer Base: The company serves a diverse group of industries, including medical, aerospace, and oil & gas. Additionally, its largest sector served is automotive, a sector with an enormous growth trajectory.

Capital Upgrades: Leveraging $1.4M in recent equipment purchases, the company can support doubled revenue growth with existing capital stock.

Strong Team: Company supports 30+ employees who receive initial and ongoing training and support. The company nurtures new talent through apprenticeship /intern programs.

Sales & Marketing: Company has a successful Sales/Marketing that garners new business through various online campaigns, direct sales, Key Account management, trade shows, word of mouth.

Leadership: Owner has developed a strong management team across all departments; team will remain in place post-sale.

Growth Opportunties:

Existing Customers: A number of customers generate less than 5% of overall revenue. It?s believed that with targeted sales efforts, these relationships can be further developed.

Night Shift: The company currently does not staff a night shift beyond a skeleton crew. Doing so would yield immediate results in terms of capacity utilization, faster order completions and cash velocity.

Capacity Utilization: The company is currently operating at less than 60% capacity overall. An increase in utilization would significantly yield incremental margin.

ISO 13485: Registration would facilitate growth in the medical-devices industry.

Assembly Capabilities: Company currently partners with others for much of its assembly needs. Bringing more in-house would speed order completion, lower costs and expand margins.