Online Distribution & Custom Manufacturing – Infrastructure/Mining Equipment
Excellent strategic opportunity to acquire a company specializing in CNC custom manufacturing and both Internet and direct product resale/distribution catering to both the Infrastructure Construction Industry and the Precious Metals Mining Industry. Infrastructure construction areas include but are not limited to road, bridge, dam, soil stabilization, and residential and municipal construction projects.
Highlights:
• Over 30 years in Business
• In-House Custom CNC Machine Tooling & Manufacturing Solutions
• In-House Manufacturing of Company’s Own Product Line
• A/K/A the Industry’s “Go To Supplier”
• Large Internet Presence 50% of Gross Sales attributed to Online Sales
• Significant Online Sales Distribution from Numerous Direct Domains
• Significant Amazon Sales Channel
• Diverse Customer Base both in U.S. and Internationally
• Numerous Competitive Advantages
• Operating in an Industry Poised for Growth
• Facility has Capacity for Much Higher Production/Manufacturing
• Seasoned Staff in Place, not dependent upon Owner
Growth & Expansion Opportunities: The heavy construction industry continues to grow with preparing and repairing our roads, bridges, and infrastructure across the United States with governmental support for multi-million and multi-billion dollar commitments allocated to these types of projects. The precious metals mining industry provides long-term stability since mining companies typically engage in 10-40 year commitments.
Most of the Company’s marketing comes from its 30+ year legacy, reputation, and Internet marketing. The Company also does some advertising in trade journals. However, the Seller believes additional growth could occur by the simple addition of a salesperson. In regard to facility use and manufacturing capacity, the Company estimates that it can increase sales up to $17,000,000, before any additional facilities are needed.
Additionally, the Company continues to grow and expand its business and customer base with great success in online sales distribution and e-commerce. There are currently over 24,000 SKUs. The Company has numerous websites and sells directly through domains as well as on Amazon. Although the Company currently has an excellent online presence and can be easily be found through Internet keyword searches, both online marketing and search engine optimization can be great increased, resulting in even higher Internet sales volume.
Competition: The Company has minimal direct competition and the Seller is aware of only one other major competitor that is similar in size and service. The Company’s competitive edge is their expertise in providing custom solutions, ability to retain customers, and capture an active Internet sales customer base through their online presence, diverse product line, and fulfillment of delivery.
In-house manufacturing capabilities give the Company a competitive edge compared to other distributors. Frequently customers will seek out this Company in the search for a special tool or solution, which subsequently leads to acquisition of the customer’s distributed product business. Often the Company becomes their customer’s exclusive supplier.
Having its own product line provides the Company with the advantage that they can manufacture their products and replenish stock rather than fill machine time at a discounted rate. This subsequently provides the Company with an additional competitive edge when purchasing, since the supplier’s price can always be compared to the cost to make the item in-house.
Facilities, Equipment, and Capacity
The Company operates in a 15,100 square foot metal building on 1 acre of land. Around 1,300 square feet is used for office space with the remainder for manufacturing and inventory. The Company estimates that it can increase sales up to $17,000,000, before any additional facilities are needed.
Additionally, the Company has 11 CNC machines, including Mazak and Haas. Estimated fair market value of their equipment is approximately $1,200,000. The Company currently operates only one shift for manufacturing and customer order fulfillment, but the Company could add two more shifts for additional manufacturing and customer order fulfillment.
Reasons for Selling: Capitalization of value of the business
Owner Retention: Assuming agreement is reached with the buyer, the owner is willing to stay with the company as needed.
Note: Terms: Asset Sale, Seller Retains Cash, Account Receivables, and will satisfy all Liabilities. Seller firm on price and terms. Seller is not providing financing or earnouts.
Important: Seller is concerned with highest level of confidentiality. Our Seller requires that our firm send each prospective buyer’s name to them for approval prior to sending any further information. Our Seller also requires our firm to have all prospective buyers send a statement of financial qualification prior to send sending any information on this opportunity. Please begin by completing the NDA at the following link which can be copy/pasted into your browser (instead of using the standard NDA on this website):
https://app.hellosign.com/s/GjUc166L