Issue link: http://deals.uberflip.com/i/1433150
This Company specializes in the custom manufacture of connecting rods, cases, blocks, heads, and other metal components for OEM applications. It has focused on continual improvement in all areas since its founding, from meeting and exceeding ISO standards, to maintaining a stringent quality control system, to developing an outstanding level of customer service. Since its founding, the Company has expanded from the dedicated production of connecting rods to full-service, single-source machining of multiple custom components. Over the historical period, the Company derived 100% of revenues from contract manufacturing for its customer base. Its top customer markets during 2020 were Refrigeration (37% of sales), Oil & Gas (25%), Fluid Pump (18%), Automotive (12%), Air Compressor (5%), and Aerospace (3%). Company Strengths • Superior Name and Reputation: The Company enjoys a long- standing reputation for high-quality products and offerings meeting the needs of complex projects and supplementing its products with superior customer service. • Strong Team: Many of the Company's key employees and managers have long histories in the industry and provide significant intangible value and advantage. • Strong Customer and Supplier Relationships: The Company has strong customer and supplier relationships due to its industry expertise and excellent customer service. • ISO Certified: The Company is ISO 9001 certified, showcasing its documented policies and procedures and standard of quality. • Equipment Capabilities: The Company uses top-line systems from the most renowned equipment manufacturers to deliver high- quality requirements expected by the industries it serves. • Key Employees Willing to Remain Beyond Transition Period: Key personnel in the Company willing to remain with new management beyond a transition period to help grow the Company. Business Expansion Opportunities • Outstanding Growth Opportunities: There exist several opportunities for the Company to significantly increase revenue and profit, including introducing turning capabilities and increasing sales and marketing efforts in order to pursue new contracts and markets. • Attractive Market Demographics: Demand from heavy machinery manufacturers is expected to increase due to new government infrastructure spending. • Product Line Expansion: The Company has potential to increase its product offerings to create additional revenue streams. • High Barriers of Entry: Entry into the market requires a large initial capital outlay to compete, thus making entry more difficult. • Growth Through Acquisition: Given the Company's established foundation, it could significantly increase revenue and profitability potential through valued-added acquisitions of similar machining companies. Prasad 'Pat' Karcherla, Senior M&A Advisor Tel: (630) 708-2408 Fax: (972) 232-1132 Email: pkarcherla@generational.com | www.Generational.com I www.DealForce.com For more information, please sign the Confidentiality Agreement DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Custom Machining Company Chicagoland Area, US 2021 Est. Revenue $ 750K Highlighted Investment Considerations The Company differentiates itself by providing quality products and a strong asset base, ensuring high-quality control standards are met. Success in the industry is driven by optimum capacity utilization, engineering, design, consistent sources of work, effective quality control, technical competence, and a good reputation. The Company excels in each of these areas and is well-positioned for growth and success. The current principals bring a lifetime of professional experience in the industry and are supported by 5 full-time production employees and 1 quality control employee. Its 18,250-square foot manufacturing and office facility is located in Illinois and is leased from a related party. The facility has been continually improved to improve manufacturing processes. Management indicates that the facility is adequate for business expansion with minimal capital expenditures. Deal # 64245