Provider of Plating and Electro-Plating Services in Western Michigan

Grand Rapids, MI (Kent County)

Provider of Plating and Electro-Plating Services in Western Michigan
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Asking Price: N/A

Cash Flow: N/A

Gross Revenue: $4,600,000

EBITDA: $1,800,000

FF&E: N/A

Inventory: N/A

Real Estate: N/A

Established: 1972

Provider of Plating and Electro-Plating Services in Western Michigan

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Business Description

This Company, operating for over 45 years, is well-known for its expertise in end-user needs, especially in the US automotive market. The Company offers a wide variety of plating options with size capabilities ranging from parts smaller than a pea to maximum dimensions of 17” x 48” x 100”. The Company processes approximately 13.5 million units per year with prices ranging from $.07 to $2.94 per unit. Average daily sales DOUBLED from $8,130 in 2013 to $16,326 in 2018.

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Detailed Information

Real Estate:
Owned
Building SF:
N/A
Employees:
35
Facilities:
The Company leases and operates out of a 30,000-square foot facility that is separately owned by owner. The Company does not maintain any additional leases, as this facility is more than sufficient to accommodate all operations and future growth.
Competition:
The company successfully competes by offering quality finished goods and competitive pricing. Other aspects of the Company’s value proposition include high levels of technical service provided to customers, fast turnaround times, and a wider variety of plating and customization options than its largest competitors. Although barriers to entry vary among industry segments, one constant can be found in strong localized competition, especially within the Great Lakes region. For prospective entrants, these highly competitive conditions may be in issue. However, the company’s 45-year history and customer base of large downstream clients successfully enables the Company to mitigate any threat from new or competing operations.
Growth & Expansion:
Further Penetration of Existing Markets: Although Company has a strong industry presence, there exists an exciting opportunity to further penetrate the Company’s existing markets. This strategy is primarily based on the recent market demand for Company’s zinc nickel plating services. In addition to the long-term trend of auto makers choosing to re-shore manufacturing back to the US, related downstream industries such as steel framing and other metal manufacturers, are forecasting record growth in future years as well. Due to the nature of the plating business, very minimal capital expenditures are required to facilitate growth. Management has included $40,000 in annual capital expenditures in the financial projections, more than sufficient to accommodate this effort. Creation of Sales Force: Although Company has enjoyed consistent increases in revenue and profitability over the historical period, creating a formal sales and marketing program could assist in taking the Company to the next level. Over its 40-year history, Company has never utilized an internal or external sales force. Management acknowledges that establishing a sales force could be beneficial in leveraging Company’s proven capabilities and superior name in the marketplace. By focusing on the development of a Company sales network, new ownership could efficiently and effectively grow revenue with minimal capital investment.
Reason for Selling:
Owners believe the company is positioned for continued growth with more capital
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Acquisition Synergy Group

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Acquisition Synergy Group

Acquisition Synergy Group

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