Precision Parts Manufacturer
| Cash Flow: | $943,000 |
| EBITDA: | $668,000 |
| Gross Revenue: | $6,100,000 |
BUSINESS HIGHLIGHTS
This 35+ year old business manufactures customer-designed machined components and parts. The Company specializes in CNC services including vertical milling, horizontal milling, turning, screw machining, and mechanical assemblies. In addition, the Company sells value-added services, ranging from engineering and prototyping to fabrication and welding, which it outsources. The Company targets defense, aerospace, and medical markets, maintaining a database of approximately 50 customers including several industry leading OEMs.
INVESTMENT APPEAL
Extensive Machining Capabilities — Management has invested heavily in equipment to develop a wide range of in-house capabilities. Most machines are equipped with pallets and robotic loading for maximum production, have 6-axis control, and dual spindles. Automation systems used for unmanned machining operations can be further expanded. The newer facility comprises 22,674 square feet and can accommodate higher revenues without major improvements or capital equipment expenditures. The current equipment revenue capacity is $1.2 million per month.
Deep & Prestigious Customer Relationships — The Company has long-lasting ties to customers due to its industry expertise, broad product availability, vendor relationships, and customer-driven solutions. As a result, the Company’s recurring revenue exceeds 95% annually, and the top five customers have been using the Company’s services for an average of 19 years each.
Desirable Certifications — The Company maintains certifications for AS9100, which is required for Aerospace and Defense customers, as well as ISO9001:2015 and ISO13485, which is highly desired by electronics and medical products manufacturers, respectively.
Favorably Positioned for Long-term Growth — A number of factors contribute to the Company’s stability and prospects for future growth. The Company is a longtime supplier to the defense industry, which is recession proof. It has a well established Legacy supply base for material shipment priority during shutdowns. It is well positioned for re-shoring initiatives to bring manufacturing back from China. Lastly, the Company is ideally positioned geographically for a reverse commute for its valued employees.
