Business Summary:
The March Group, LLC currently represents a well-established distributor of coupling stock used in the manufacture of couplings for the oil and gas industry, as well as seamless tubing used for other machined parts. The Company faces virtually no competition in the niche it serves: a focus on an under-served industry segment – clients unable to wait for manufacturer delivery of stock, or those that can not afford to buy in bulk –has enabled it to excel using a fairly simple business model. Competitive strength is the delivery of orders with very short lead times and in less than truck load quantities – allowing higher profit margins than a traditional distributorship. Sales for 2007 topped $5,032,000, which represents a 26% increase over results for the same 12–month period in 2006 and a Compound Annual Growth Rate of over 100% for the years between 2004 and 2007. 2007 EBITDA of $606,000 represents a profit margin of 12.06%, which is the minimum level projected through 2011. Consistently serves 20 to 24 accounts, and the Company recently started supplying to a Southeast Asian market. Carries approximately $1,000,000 in inventory at any given time. Significant opportunities for growth include product line diversification, supported by current clients, and the expansion of sales and marketing efforts. Relocatable opportunity.
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