Custom Panel Distributor of Electrical AC/DC Drive Systems

Mid West

Custom Panel Distributor of Electrical AC/DC Drive Systems

Asking Price:N/A

Cash Flow:N/A

Gross Revenue:$2,500,000

EBITDA:$294,000

FF&E:N/A

Inventory:N/A

Established:2002

Custom Panel Distributor of Electrical AC/DC Drive Systems

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Business Description

This Company is a custom panel distributor that custom packages, integrates, and engineers AC variable frequency drives (VFD), DC variable speed drives (VSD), and AC drive controllers. The Company's drive systems integrate top of the line manufacturers, like ABB, Emerson (Control Techniques & Saftronics / Fincor), Siemens and WEG. This Company derives a competitive advantage by being a leader in the custom distribution industry, specifically in, AC and DC drives. Also included, this Company has a related Company which produces custom AC and DC drive systems to a Nuclear Quality Assurance 1 level facility. The majority of the Company's customers are concentrated within the automotive and oil exploration industries and contract with the Company to provide new custom panels or servicing existing equipment. The Company has approximately 900 customers in its data base and generates a 91% rate of repeat business due to the Company’s dedication to service and providing a superior product.

Detailed Information

Employees:
5
Facilities:
The Company currently leases one 10,000 square foot office and assembly facility
Competition:
Expected upgrades in infrastructure are anticipated to stimulate demand for industry products over the five years to 2020. Additionally, new construction activity and growth in the manufacturing sector will further increase demand for industry products. Over the same period, exports are expected to rise at an annualized rate of 4.6%, further bolstering revenueThe Company serves a variety of different customers in various industries, including large OEMs in the food industry and oil and gas exploration companies. Customers contract with the Company to provide new custom panels or servicing existing equipment. On average, the Company’s equipment will last in excess of 10 years as long as routine maintenance is performed. As such, orders will come in every few years which cause its top customers to fluctuate every year. The Company has approximately 1,000 customers in its data base and generates approximately a 90% rate of repeat business due to the Company’s dedication to service and providing a superior product.
Growth & Expansion:
In the five years to 2020, the electrical equipment industry is forecast to grow at an annualized rate of 3.3% to $206.7 billion, Moreover, increased electric power consumption will further drive demand for electrical equipment products, boosting industry growth. Along with revenue growth, profit is expected to rise as a result of increased efficiencies and productivity through acquisitions and advanced inventory control software. The industry is highly fragmented, with the four largest firms in the industry accounting for about 9.5% of industry revenue in 2013. The Company has several long-term established relationships; the Company is able to offer equipment with up-to-date technology which allows it to differentiate itself from competitors who are using older, less reliable equipment
Support & Training:
yes, through transition period

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Frederick Zweifel

Business Listed By:
Frederick Zweifel

Generational Equity, LLC

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Sponsoring Broker:
Lisa Lippe

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