$2.5MM+ SDE Mission Critical Machining Company

Description:

Highly profitable Midwest machining company that provides mission-critical services to a variety of end markets with a strong foothold in the steel industry for +20 years. The business mainly supports the Steel industry with long time relationships, including the top steel producers. The business is "mission critical" with its clients and has strong repeat business from 150+ long time clients along with substantial backlog

Key Aspects:

- Company expects to generate revenue of $13.0 million and SDE of $2.5 million in 2024
- 60 non-union employees
- Specializes in rush turnaround intervals
- Operates out of a +30,000 square foot facility
- Top 10 customers generate 83% of revenues with largest single customer at 35%
- ~95% of sales are from existing customers
- Very deep relationship with all top customers

Opportunities:

- Buyers have various growth levers at their disposal including:
- Existing customers: saying “yes” to more work
- New customers: onboarding new, high-potential customers
- Bolt-ons: fragmented and highly synergistic industry w/ many owners looking to retire

Shareholder Objectives:

- Owners are seeking a 100% buyout from strategic or financial buyer
- Owners are passive investors and not involved in operations

Investment Highlights:

- Very favorable executive transition plan
- Skilled and loyal employee base
- Customer stickiness and long-dated history
- Limited need for go-forward capital investments
- Very positive external industry and regulatory tailwinds
- Multiple levers for revenue growth
- High barriers to entry
- Fragmented industry prime for roll-up acquisition strategy