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Writer's pictureMid-States Advisors

Active Sell-Side Engagements - April 2023

Below are brief descriptions of some of Mid-States' active sell-side engagements seeking buyers. If you or a qualified buyer you know is interested in any of the attached please reach out to one of Mid-States' representatives today.

Best Regards,

The Mid-States Team


Joseph P. Alam III

Managing Director

(313) 670-5713


Joe Alam Sr.

Senior Advisor

(313) 215-1700


Jim Connor

Managing Director

(248) 935-4037

 

Current Engagements:


Project Condor


The Company is a supplier of chrome-plated zinc die-cast products. They have a reputation for providing customers with superior quality, and outstanding service, at a fair price. The company offers a competitive advantage to its customers with its ability to die cast parts, polish, buff, and chrome plate all out of one facility. The company is largely non-automotive but is built to handle volume. The company has automated operations where available but additional automation would reduce headcount.

While revenues remain under $10MM in the recent past there’s a significant opportunity to return this company to its previous glory, when it regularly achieved revenues north of $30MM/year. The Seller is motivated as he seeks retirement but is willing to stay on in a reduced role. He would like to see a good steward for this business and its employees. Owner-occupied real estate is available as part of the transaction or ownership will retain and lease back to new owners.



Project Badger


The Company is the gold standard in their industry when it comes to quality and service, receiving numerous industry awards. The company designs and builds specialty automation equipment to move material and work in process production parts through manufacturing processes. All designing is done in house using their “library” of intellectual property developed over 40 years of history. The experienced design engineers create cost effective material movement mechanisms to efficiently keep the customer’s processes performing at the target rate of operation. Primary markets services include automotive and household appliance industries.


After down years caused by customers delaying shipping of finished product the company is starting 2023 off very busy and backlog is currently going into 2024. Projected revenues for 2023 are expected to fall just short of $20MM and profitability north of $2MM. There is a significant opportunity for growth by moving the business to a larger facility where the business will be able to work on large OEM applications that typically carry high margins.

The owners are seeking to sell this family owned business as they look toward retirement. They will aid in the transition but have built a strong management to support any acquirer.



Project Cardinal


The Company is a small spring manufacturer focused on design assistance, prototyping and production of springs. Specialties include wire forms, drag springs, coil springs, clips, flat springs and more. They have a diverse customer base across a variety of industries, in the US and globally, with a firm commitment to exceptional service and high- quality products. The Company provides its products to the oil & gas, aerospace, and water regulation industries. Knowledge of materials ranges from exotic high nickel materials to basic steels.


Revenues were depressed by Covid but have been picking up significantly and are now returning to pre-pandemic levels and profitability. Through March 2023 the Company has generated $745k in sales and close to $200k EBITDAR.

There is also a smaller sister company that generates around $1MM of revenue each year and operates around breakeven that could be combined in the Midwest facility and reduce significant duplicative overhead and management costs that would make the business highly profitable. The smaller company provides more precision products that require tight tolerances.

Management is seeking a buyer for the business but would prefer to retain the real estate and lease it back to the buyer.



Project Aerospace


The company is a precision machine shop located in the Southwest. Certified to ISO 9001:2015, ISO 13485 and ASD9100D standards and registered with ITAR, the company used its modern equipment to produce precision parts to tight tolerances. The company boasts a skilled workforce to make it one of the nation’s top precision and 5-axis CNC machining specialists. Capabilities include wire cut EDM, turnkey manufacturing, CMM inspection, and CNC turning. The vast amount of modern equipment allows the company to utilize a wide range of common and specialty materials.

While aerospace remains the largest customer, the Company also works in the defense and oil & gas industries among others.

Bought as a turnaround losing close to $2MM per year right before the pandemic hit, the owner has rightsized the staff and generated new sales from multiple industries leading to a projected profit in 2023. Customers continue to grow with them because of their reliability and vast knowledge.

Seeking an exit to focus on real estate investments, the owner would like to sell the business to a well-capitalized buyer with the financial wherewithal to invest in sales and marketing to grow the business and fully utilize the equipment. The owner would prefer to retain the real estate and lease it back to the buyer.

 

Have an opportunity to discuss? Want to connect?


If you, a client, or someone you know is seeking a sale of their business and is looking for sell side representation please reach out for a conversation. We always enjoy talking to owners and their representatives to walk them through the sale process and provide an expectation for pricing.


Below are the direct phone numbers and emails for a Mid-States team member who can answer your questions:



Joseph P. Alam III at 313-670-5713, JP3@midstatesadvisors.com

Joe Alam at 313-215-1700, JPA@midstatesadvisors.com

Jim Connor, 248-935-4037, JJC@midstatesadvisors.com


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