Structural Metal Products Company for sale; $5.3M revenue, 17% EBITDA

The Company is an established, growing Structural Metal Product Manufacturing company located in the Midwest United States. Founded in 1991, the Company reported $5,374.642 in 2023 revenue, up from $3,193,391 revenue in 2020. This revenue growth implies a CAGR of 19%, which is 21.5x the industry growth rate of -2.5% for Structural Metal Product Manufacturing companies in the U.S. Pro forma adjusted EBITDA for 2023 was $933,643 or 17.3%. This implies a PF EBITDA margin of 3.1x the industry average EBITDA of 4.7%.

The Company is known across the Midwest for the high quality of its work and its commitment to customer satisfaction whether a large job, or small. The Company has been producing structural steel for over 30 years and approaches each customer engagement with a made-to-order mindset, ensuring services are quoted fairly and performed to exacting quality standards. Service areas include negotiated project work, preliminary project costing, design and build project participation, engineering design, custom finishes, and providing accessory items. Products include columns, beams, tube steel, floor and roof decking, joists and girders, steel stairs, X and K bracing, handrails and guardrails, canopy, brick and trellis framing.

The Company performs approximately 38 jobs per year for an average of 24 customers per year. Customer retention is strong and over the past five years, 57% of revenue originated from customers who have ordered jobs from the Company for two or more years. Customers do not sign long-term contracts but many customers award job orders year after year. The Company has attracted and retained this group of customers with its long-standing focus on high-quality design and production, its commitment to customer service, and its reputation for delivering customized solutions, both large and small.

Average employee tenure at the Company is 17 years, and 57% of Company revenue came from repeat customers. Supplier relationships are strong, Management has purchased from its three key vendors for 30 years, meaning the Company benefits from favorable supply and payment terms.

The Company has documented all job processes from contract negotiation, bidding, estimating, project management, delivery and construction using TEKLA EPM software. Management has maintained a robust customer and job database containing details from over 1,140 jobs from the past 30 years, including drawings, specs, raw materials origination, suppliers, subcontractors, locations and project details. The Company enjoys solid brand equity from its 30 years in business.

The Company is headquartered in a 20,000 square foot building which contains a fabrication shop, two-story office space, 24' to 28' clear heights, four drive-in doors and two, 5-ton overhead hoists. The improvements are situated on a 1.87-acre site zoned for light industrial use by the county. All necessary utilities are present, and the property is owner-occupied. The environment is designed to maximize operational efficiency during production, allows for space to take on specialty steel projects, store and maintain equipment and supplies, and manage all sales and front-office duties. The Company also owns and maintains over 75 pieces of machinery, equipment, and vehicles for use in its operations, valued at approximately $735 thousand on a fair market value basis. Current value of the land and facility is appraised at $1.25 million.

This recapitalization presents investors with the ability to participate in:
1. Excellent Brand Equity
2. Growing Customer Relationships with 57% retention
3. Strong Value Proposition to Customers
4. Detailed Database of 1,140 Job and Customer Specs
5. 190 Years of Collective Industry Expertise
6. Substantial Tangible Asset Value in Facilities
7. Attractive Long-Term Business Development Opportunities
8. 30+ Years of Stable Cash Flow and Steady Growth