Heavy Duty Conveyor Manufacturing Business
NEO Business Advisors represents a great opportunity to acquire a manufacturing business that designs, engineers, and manufactures custom, heavy duty conveyors with an excellent reputation for quality and a 60+ year history serving global industrial customers in a wide variety of end markets.
The foundation is laid for a buyer to focus on profitability and growth with most of the heavy lifting in an operational improvement and turnaround process completed. The owner has made significant investments and improvements in the business, operations, facilities and most importantly employees. Operating throughout COVID-19 and supply chain issues in 2021, the business turned the corner to profitability in Q4 2021. The company is strong financially with no debt. Stable management is in place running day-to-day operations. Owner is semi-absentee and focuses on recruiting, marketing, continuous improvement, and strategic planning.
COVID-19 Impact Statement: The business operated as an Essential Business throughout COVID-19. *Sales decreased in 2020 and 2021. Bookings and quote volume were strong in second half of 2021 returning to pre-COVID levels.
Bookings by Year:
2021 Bookings $ 3,105,437
2020 Bookings $ 2,126,396
2019 Bookings $ 3,046,182
2018 Bookings $ 2,908,840
Revenue by Year:
2021 Revenue $ 2,184,270*
2020 Revenue $ 2,373,006*
2019 Revenue $ 2,682,179
2018 Revenue $ 2,692,179
Seller’s Discretionary Earnings (SDE) by Year:
2021 SDE $ (93,324)
2020 SDE $ 19,203
2019 SDE $ 146,044
2018 SDE $ 86,732**
4 Year Weighted Average SDE $ 148,412
Weighted Average is (10% 2021, 10% 2020, 40% 2019, 40% 2018)
**2018 Normalized EBITDA is from Date of Acquisition 8/24/2018
Furniture, Fixtures, and Equipment (FF&E):
FF&E is included in the asking price and includes stamping presses, press brake, semi-automatic welders, manual welders, manual machines, flattener, sanders, grinders, work benches, tables, paint booth, paint equipment, tooling, forklift, six overhead cranes, office workstations, computers, conference tables, file cabinets, CAD software, printers, phone systems, and copier.
Inventory and WIP:
Inventory and WIP are included in the asking price to be adjusted up or down for actual amount at time of closing. Inventory and WIP includes raw material (sheet, angle, beam, bar, etc.), commercial components for conveyor assemblies and spare part orders (motors, bearings, rollers, idlers, belting, fasteners, etc.) and all work-in-process.
$727,581 - Included in asking price
$1,500,000 - Owned, Not Included in Asking Price
40,000 (37,000 Manufacturing with 3,000 Office)
25 (24 FT / 1 PT)
Furniture, Fixtures, & Equipment (FF&E):
$145,000 - Included in asking price
Real Estate is owned by the Seller and for sale with the business. Estimated value is $1,500,000 not included in the Asking Price. The building is approximately 40,000 SF with 37,000 SF of manufacturing space, mezzanine, and 3,000 SF of renovated office space. True manufacturing building with six overhead cranes and four overhead/dock doors with ample room for expansion on over five acres of land with convenient highway access and excellent location for access to skilled employees.
Growth & Expansion:
The business is an excellent strategic acquisition opportunity for someone already in the industry offering a strong workforce with 25 experienced employees and a management team in place. *Q4 2021 turned the corner to profitability working through production and pricing issues in 2020 and early 2021. Strong backlog with pricing reflecting current costs and customization. A buyer will benefit from the increased pricing, process improvements and higher margins as they grow the business. Opportunities for growth include developing a strategic marketing plan and hiring additional sales/marketing personnel. The owner took steps in this direction by engaging a manufacturing rep firm in 2021. The facility is currently underutilized and has the capacity for more volume. The business currently runs one shift. Additional shifts would increase production capacity. The property can accommodate a facility expansion before outgrowing the real estate.
Negotiable for a Qualified Buyer
Support & Training:
The owner is willing to include a reasonable transition period to facilitate a smooth transition.
Reason for Selling:
Seeking a sale to a company or individual with production capacity and/or experience to profitably scale sales.
Contact the Seller
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