This Company manufactures precision production tools & equipment for major Aerospace and Electronics Manufacturering Companies. Their excellent quality products focus on design, construction, and assembly of electronic components and circuit board assemblies. They are also top producing exclusive distributors of foreign produced robotic soldering manufacturing equipment.
They have customers and agents(reps) across the globe that sell to 17 different countries and some of the most prominent corporations in the world like NASA, Lockheed Martin, Northrop Grumman, Boeing, GE, Raytheon, Honeywell, Motorolla , and the list goes on. This business has more than 300 Active customers. Their customers end-use industries include: Military Satellites, Defense Electronics, Automotive, NASA Satellites, International Aerospace, OEM’s, and Computers & Electronic Products.
Their business model consists of four main revenue streams.
1) Production of equipment used to manufacture electronic components and printed circuit boards.
2) Domestic distributor for foreign equipment manufacturers seeking access to the U.S. market
3) Performing insourced fabrication services for companies not looking to purchase the equipment.
4) Providing equipment repairs and parts in support of tools that were purchased from them.
Products include Tooling Hardware, Presses ( Servomechanism & Compressed Air), PCB Racks, and PCB Fixtures, Robotic Soldering, Hot Bar Soldering and Depaneling Equipment.
Down Payment: $3,900,000
Total Sales: $4,700,000
Accounts Receivable: $335,000
FFE: $1,350,000 (Included in Price)
Lender Pre-Qualified?: Yes
Terms and Conditions?:
This Company is a C-Corporation. In an effort to dodge double taxation and drastically reduce their tax liability, we are seeking a Stock Purchase transaction.
Reason For Sale:
This Company is led by two stockholders. The president and majority stockholder wishes to sell his entire stake in the company for retirement. The vice president and minority stockholder wants to retain his 15% equity stake in the company post close and wishes to remain with the company for many years to come.
Training & Support:
Full training and support. The exiting owner has agreed to remain with the company for a one year transition period after the sale and will potentially agree to remain as a paid consultant.
Year Established: 1972
Days & Hours of Operation: Mon-Fri 8-4
Owner Hours Per Week: 40
Managers: 3 Managers (Sales, Production, and HR)
Lease Option: 10 Years
Monthly Rent: 15,500
Type of Location: Commercial Stand Alone Manufacturing Facility
Square Footage: 21000
This Companys competitive advantage lies within their knowledge, reputation, expertise, and experience. Their customers have established major confidence in them thus earning them an excellent reputation in the electronics industry and with other manufacturers. Their “Blue-Chip” customer base is evidence of this. They pride themselves on a high level of responsiveness in concert with competitive pricing- as an added reason why they have grown at rates much faster than the competition. They also have key competitive tactics within their particular product lines. Competition is minimal; Very few have the production capabilities comparable to this company.
UNLIMITED! A significant number of their products currently address only a fraction of their respective addressable markets. A new owner is capable of increasing revenues substantially globally marketing current and new product lines and moving the company in the future to a larger facility. They have established excellent distribution channels creating an opportunity to represent additional manufacturers. They are currently an exclusive distributor for North America for a major Asian Company that has UNLIMITED potential in the U.S. , Mexico, and Canada.The Aerospace and Aviation Sector as a whole has consistently acheived YOY growth for decades and is the Most active sector for M&A due to huge runway for growth.