After-Market Auto & Power-Sports Parts Manufacturing and CNC Machining

CNC Machining Expertise

Branded and white-label products; Located in LA and Ventura Counties

The Company was founded in 2012 to acquire and grow niche manufacturing businesses in Southern California. The first acquisition was a healthy founder run business with unique metal fabrication capabilities. The company later acquired a CNC machining business with strategic upsides. With locations in Los Angeles and Ventura counties, the combined businesses have serviced long term customers in the automotive aftermarket, defense, and general contract manufacturing spaces throughout the U.S.

The company recently launched a new product that will serve an exclusive contract with a key government vendor. The Company has invested in its team and infrastructure to prepare for the significant growth from this near-term opportunity as well as the organic growth coming from its high-margin, branded D2C business and strong, recurring contract manufacturing business. The company could be relocated, added to an existing business, or remain where it is and continue to grow profitably.

Key Investment Highlights...
1. High-End Niche Capabilities (Differentiated, end-to-end design, development, and production capabilities for high-end products in desirable, niche markets)
2. Branded Proprietary Products (In-house development and manufacturing of high-margin, branded and proprietary products)
3. Long Standing Client Relationships with Repeating Revenue (Long-term relationships with industry leaders offers strong revenue visibility and reoccurring sales)
4. Contracted Growth Opportunities (Near-term completion of an exclusive contract to supply proprietary, patented security product to a government vendor)
5. Compelling Financial Profile (High degree of operating leverage due to investments in infrastructure offer expanded margins and meaningful capacity for growth)
6. Strong Leadership and Seasoned Employee Base (Decades of experience in CNC manufacturing and R&D to create differentiated, long-tail products)

Key Stats...
1. 2024E Revenue: >$5 million
2. Annual Revenue Growth: 15%
3. Gross Margin: 32%
4. EBITDA Margin: ~20%

Facilities…
1. 15,000 sqft purpose-built manufacturing facility in Los Angeles, roughly 1 hour outside of downtown. Expansion opportunities by way of open lots in the adjacent property. The facility is owned by the original founder, with 2-year lease options through 2028. Includes the right to sub-lease.
2. 3,700 sqft machine shop in Ventura County. New facility built in 2021 with room to expand, purpose built for machine shop and technical assembly activities. The facility can be available for purchase separate from the business.

Growth…
1. New Contract Manufacturing Products: Exclusive contract for the company to provide a patent-pending, high-margin pet product to a global security contractor.
2. New Proprietary, Branded Products: Strong in-house R&D expertise with outstanding track record for innovation and speed-to-market.
3. Adjacent, High-Growth Markets: High-end manufacturing capabilities in high-demand in UTV, off-roading, overlanding markets.
4. Increase Capacity Utilization: Organic growth with existing customers by capturing more of their wallet share.
5. Expand Direct-to-Consumer Marketing: Drive continued high-margin D2C sales with the current 800% return on ad spend.
6. Strategic Acquisitions: Horizontal and vertical acquisition opportunities to increase capabilities and expand margins further.

Sale Process…
The owners are proud of the business, especially the reputation they have built for quality and consistency in the power-sports and aftermarket automotive parts market. They have installed experienced operating managers at each location and are now focused on the next chapter including retirement and focus on other investments.

The result is an opportunity to buy a successful, growing, self-sustaining business with a long list of repeat, loyal customers, a deep bench of seasoned employees, and new products in development that are poised to drive significant revenue and margin expansion.