Highly Profitable Mold Manufacturer for Sale

Not Disclosed, MI
Berrien County

Asking Price: Annual Revenue:
Not Disclosed $2,782,166

Manufacturing: Metal Products

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RE: Highly Profitable Mold Manufacturer for Sale Broker: Max Friar
Owner Financing is Available!
Limited Seller-Financing Available for Qualified Buyers.

Quick Facts

Asking Price: Not Disclosed
Annual Revenue: $2,782,166
Net Profit: Not Disclosed
Cash Flow: $1,005,984
Total Debt: Not Disclosed
FF&E: $1,631,000
Real Estate: $1,000,000
Year Established: 1982
Employees: 12
BBN Listing #: 190445079
Broker Reference #: 050

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Business Overview:

If you are seeking a time-tested and strongly profitable manufacturing company in Michigan, do not miss this opportunity. We do not see companies this nice very often!

From its 18,000 square feet facility in Southwest Michigan, this Company designs, builds, and repairs molds for the diecast industry. The manufacturing precision, long-standing customer relationships, and industry specific knowledge required to do this work eliminates many other tool & die shops in the region from competing with the Company. These barriers to entry enable the Company to charge a premium for its services. Over the past several years, the Company has averaged a Gross Profit Margin of nearly 50% of sales and a Net Income Margin of over 20% of sales. The Company expects 2020 to finish out strong.

Over its three decades of operations, the Company has experienced many different economic environments. Thanks to the low-overhead business model of the Company and its nimble size, it emerged a stronger organization with each test. Buyers interested in this Company will be pleased to find that this tested and proven Company has an extremely knowledgeable team, desirable customers, and a facility and equipment that have been consistently reinvested in.

Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. You will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found please email us and request a PDF version.

Once we receive your NDA and answers to some basic questions the Confidential Offering Memorandum (OM) will be sent to you from the project manager.

IF YOU DO NOT RECEIVE A FOLLOW UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email us for support. Thank you in advance!

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Property Features and Assets:

The Company operates from a very well-maintained 18,000 sq. ft. facility that includes 2,000 sq. ft. of office and 2,000 sq. ft. of storage. Significant improvements were made in 1991, 1995 and 2014. The real estate, which is also anticipated to be part of the transaction, has an estimated value of approximately $1MM. The seller is willing to entertain a lease at $100,000/year on a triple net basis, provided the lease is for a minimum of 3-5 years.

Market Competition and Expansion:

High Profits and Repeat Business; Due to the nature of this type of manufacturing, the end product is very expensive and so it can support high-margins. However, despite the quality of the tool and the considerations that goes into its design, after thousands or tens of thousands of cycles, it will need to be repaired, rebuilt or replaced. So, although the Company typically does low volume work, it can count on a consistent demand for high-margin projects. Well Maintained Equipment & Real Estate; The Company has invested in high-quality equipment. Although the current owners often purchase new equipment for tax considerations, the existing equipment may serve a new owner well with modest investments in equipment for a few years. The equipment will also allow a buyer to provide collateral support for a loan if needed to finance the acquisition with debt. The equipment was appraised in February of 2020 at $1,631,000. Growth and Expansion Pros and Cons: Grow Business with Existing Customers; Over the years, the Company has worked with many businesses throughout the state and beyond. Several of these customers suffered slowdowns are now on track to perform much better. Reaching out to these previous customers would be a simple and low-risk strategy for growth. Expand Sales Team and Marketing Efforts; The Company’s owner is the only sales person and the Company engages in virtually zero marketing efforts. Quoting jobs for existing customers and managing those relationships provides the Company with more than enough work. However, adding a dedicated salesperson to reach out to new potential customers would be a great way to grow the business and diversify its customer base.

Reason for Selling:

Partner desires to retire.

Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

Relevant Links:

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