Business Summary:
The founder/owner of this very successful 16 year old manufacturing concern has built three distinct profit centers. The first two (manual powder coating and parts sub-assemblies) are somewhat typical manufacturing operations. The third profit center is what distinguishes this business from any I have ever seen: it has a state of the art, high speed, highly automated, very profitable, and “green” powder coat line.
Operating out of an attractive, spotless, 10,000 square foot ten year old facility designed and built for this business, the company is located on a ten acre parcel in a successful industrial park in mid Michigan just minutes off a major highway. Everything used in the powder coat line, from the oil washed off the customers’ parts on arrival to the paints used in the coating process, is recycled. At the end of the coating process (which generates no hazardous waste) only clear water remains which is eventually flushed down the city sewer system.
The high speed, automated powder coat line runs as many as 1350 parts per hour with just three employees. The other profit centers in this one shift (four-10 hour days per week) operation are manned by 5-10 additional employees depending on the workload. The business boasts a well trained, loyal, quality conscious, non-union work force with several employees having been with the company virtually since its inception.
The seller, now at retirement age, is offering the business for $1.385 million which is 3.75x the consistent annual cash flow approaching $370,000. The business sale will include both the inventory and the accounts receivable, the later averaging a remarkably low 15 days. In addition, for qualified buyers, the seller will carry a meaningful seller note. Finally, the real estate (building + 10 acres) may be purchased separately for the appraised price of $750,000.
The seller will work with the buyer both to insure maintaining the profitable automated powder coat line and to introduce him to both existing and prospective customers, the later group having made numerous requests (which were turned down by the seller) to run various parts.
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