$4.7MM Annual SalesPowder Coating iStock 1133234762
$300K EBITDA 

The Midwestern based S-Corp business is a tier-3 supplier to OEMs and provides a wide range of mechanical finishing and powder coating for precision metal manufacturers. The business also provides consulting and sales for new and used mechanical finishing equipment and consumable supplies.

Facilities: Over 80,000 square feet under roof with 3,000 square feet of parking. Leased to related party, $15K/month. Recently appraised at $1.9MM. Facility outfitted for five paint systems as well as mechanical finishing job shop.

Equipment:  The business maintains all the equipment ($3.5MM+ replacement value) to run 5 paint systems & metal finishing job shop for up to 3 shifts. Business is currently running 1 shift, and was running 2 shifts until early 2020. 

The business uses Global Shop ERP to manage estimating, inventory, work flow, job costing, book-keeping, and accounting. One system can paint up to 2000 pound pieces as large as 20 x4x6’ in size and up to 6’ per minute. Recently added an $800K state of the art quick color change automated precision powder coating booth. 

Staff & Marketing:  The business employs over 45 full and part-time employees.  
Operations manager, quality manager, office manager, shipping supervisor, estimating specialist and outside sales executive all in place. In addition the business employs over two-dozen painting techs, half-dozen mechanical finishers as well as maintenance and shipping and receiving staffers.   The average staff tenure at the business is 12 years.

Opportunity: 

2017 = $3.85MM 
2018 = $4.47MM 
2019 = $4.74MM
2019 Sales by Category: 
Powder Painting = 73% 
Mechanical Finishing = 13%
Equipment Sales & Media = 14% 
 
Excellent platform business, or add-on opportunity. Business wishes to also sell or lease the property to the new owner. 
Current forecast with new equipment is to grow to $5.5M in annual sales by 2023. 
Will finance up to 20% for qualified buyer. 
 

Capabilities:

  • NAICS: 3479, 3399
  • ISO Certified: 9001:2015 (2018)
  • Abrasive Blasting 
  • Parts Washing 
  • Powder Coat Painting  
  • Shot Peening
  • Specialty Packaging
  • Ultrasonic Cleaning 
  • Vibratory Finishing
  • Warehousing & Logistics
 Asking Price:   $850,000
2019 Sales:   $4,740,000
2019 EBITDA: $300,000
Inventory:  $150,000 
FF&E:  $3,500,000 
Property Not Incl in Asking Price:  $1,980,000 

 

Customers & Markets:

  • Agriculture
  • Appliances
  • Automotive
  • Building Materials
  • Casting Manufacturers
  • Construction
  • Medical
  • Military
  • Recycling
  • Textile
  • Transportation
  • Over 600 unique customers.
  • Over 300 Tier 1 OEM specs tested & approved. 
Training & Support: Leadership includes General Manager who wishes to stay on with new owner as well as Senior VP of Sales available for continued employment and owner/founder available for consulting.
Reason for Selling: Retiring

Upon receipt of this completed and digitally executed NDA below, we will follow up by phone and/or e-mail to qualify providing the complete offering memorandum and schedule a time to discuss the opportunity further.  Information available now to qualified buyers: 

  • Business History
  • Sales by Division Annually 2017-2019 
  • Historical Sales, COGS, Gross Margins, EBITDA & SDE Analysis 2017-2019 
  • Income Statements 2017-2019 
  • Sales by Rep by Medium 
  • Profit by Sales Rep 
  • Sales by Month by Sales Rep 
  • Gross Profit by Division
  • Location Information
  • Property Photos  
  • Property Appraisal 
  • Capabilities Descriptions
  • Customer Concentration 
  • Product Photos 
  • Equipment Photos 
  • New Automatic Paint System Video 
  • Staffing & Compensation Matrix 
  • Marketing 
  • Seller Profiles
  • Seller Terms 

Direct link to the NDA, here.