Business Summary:
The March Group currently represents a niche manufacturer of a line of farming implements, which boasts close to a 40 percent market share. 2008 sales and EBITDA of nearly $2.4 million and $182,000, respectively, which represents an EBITDA margin of 7.8 percent. EBITDA has steadily increased over the past several years, stemming from changes in operating expenses, capital purchases and increased sales, a trend that is expected to continue into the future. Requiring approximately 80 labor hours per unit to manufacture, the Company’s products are widely recognized as the longest-lasting and highest quality in the market, with an average lifespan exceeding 10 years. Current order backlog will keep production operating at full capacity through June 2009. Sales are generated through three channels: dealers who sell to end-users (75 percent), direct to end-users (15 percent), and distributors who sell to dealers (10 percent). Sales efforts have historically been led by one in-house salesperson, with a core of three local dealers accounting for 50 percent of sales - leaving significant room for market expansion. Recently hired manufacturer’s representative is expected to generate increased sales across the southern Midwest. Average production is up to 160 from an historical average of 130, with a continued rise projected over the pro-forma period. Organized as a subchapter “S” corporation.
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