Semi-Absentee Rubber OEM Firm

New Jersey
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Asking Price:$1,400,000
Gross Revenue:$3,284,162
Real Estate:$2,800,000
Cash Flow:$557,946
EBITDA:$429,319
Established Year:1959
BUSINESS DESCRIPTION

This highly regarded Original Equipment Manufacturer (OEM) company manufactures high quality rubber, silicone and urethane molded products.

They are a preferred supplier to a Fortune 500 company. Their manufacturing process utilizes proprietary formulations, which are specific to customer requirements, and have proven to be superior to competitor products.

Some industries served include elevator manufacturing, automotive, construction and aerospace. Most customers have been working with the firm for four decades or more. Customer retention is supported by high barriers to switching, which include complex reporting, onboarding costs and potential business disruption.

The standard level of working capital required in the business is $200K.

The owner is semi-absentee at this point in time. He is only in the office two days a week for half days, reviewing production with his foreman. Remotely, he logs into the system and reviews orders and production logs. He does still handle some client facing activities. The GM acts as a conduit to the foreman on-site. Currently the financials are done remotely.


DETAILED INFORMATION
Location
New Jersey
Inventory
Not Included in asking price
Real Estate
Owned
Building SF
12,500
Growth & Expansion
Growth opportunities include implementing a sales/business development function in order to obtain new business. The company has never had a BD team, which would drive top line growth. There is also no website or social media presence.
Support & Training
The seller expects a 3-month transition period.
Reason for Selling
Retirement
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Matt
Lyna
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Matt Lyna