Highly Profitable Manufacturer of Precision Chemical Etched and Electroformed Metal PartsListing: #PAE00154
About this Business for sale in East Coast StatesHighly Profitable Manufacturer of Precision Chemical Etched and Electroformed Metal Parts
This respected company, based in the Northeastern US, delivers precision chemical etched and electroformed metal parts that consistently meet the stringent requirements of its clients in the semiconductor, medical equipment and defense industries around the world. It also provides coated glass for photographic applications. Clients provide complex specifications, and the Company provides the parts with industry leading quality control and short lead times. The Company enjoys long-term relationships with its clients, with ninety percent of orders coming from on-going projects. The precise nature of the client specifications leads to high gross profit margins.
Semiconductor parts are created using chemical etching or electroforming, depending on the thickness of the metal and precision required in the client’s design. Metals include Molybdenum, Nickel and Copper, to name a few. In the medical equipment, parts are used in cystoscope and endoscopy products. Tungsten is a typical metal for these applications. Defense applications are confidential. The industries the Company serves continue to enjoy strong growth.
The Company differentiates itself by delivering precision parts with industry-leading quality and lead times. Few companies can build these parts due to their precise nature, so the competitive set is small. The Company has a strong reputation for outstanding quality control.
The tenured staff of ten possesses the technical expertise to deliver on client expectations. The business is currently located in a building far larger than needed for the operation. The buyer has the opportunity to move the business to an existing facility or to a more appropriate facility.
The Company has strong growth potential. Currently, it runs only one shift, and utilizes only a portion of its equipment. As such, a new owner could dramatically increase capacity. Business development efforts could gain market share. The Company currently relies on incoming orders from existing or former clients without new business development efforts.
This Company would be an attractive investment for a company providing these services or related services that wants to grow its customer base or product and service portfolio, a financial buyer looking for a platform or add-on in a highly-specialized and profitable business with limited competition, or an individual or group of individuals that seeks a niche manufacturing business.
*Profit: Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.