Semi-Absentee Rubber OEM Firm
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 |
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.