Acquisition Opportunity: Profitable Metal Fabrication Business
For Sale:
Our client, an established custom manufacturing company with a 45+ year history, offers a full range of custom design and fabricating capabilities. Workingman Capital has been retained as exclusive sales agent to find a strategic or investment buyer for this profitable operating company with a strong business and order flow. This presents a tremendous opportunity to acquire a highly successful operating business with ready-to-go manufacturing capacity.
People & Premises:
Currently the company employs over 40 persons with 12-40 year tenure in skilled and management positions. Includes in-house sales department supported by welders, polishers and general staff. The Company operates out of a leased 45,000 square foot facility in the Greater Toronto Area, Ontario, Canada. Featured assets include CNC press brakes, CNC benders, welding and quality control.
Customers:
The company enjoys a diverse and loyal customer base including, but not limited to: furniture, fixtures, healthcare and displays. Over the past 4 years, the top 10 customers have represented on average 58% of total sales and have been customers for an average of almost 12 years. The Company is highly regarded for on time delivery of high- quality product, resulting in industry leading customer retention and satisfaction.
Financial:
The business has expanded over the years via organic growth and acquisitions. Four-year financials demonstrate average revenue growth of 35% (23% CAGR). Revenues varied due to Covid and acquisitions however are poised for consistent growth going forward. Last fiscal year’s revenue and adjusted EBITDA exceeded $9,000,000 and $850,000 respectively, with margins of 9.4%. Fiscal 2023 is off to a good start, there is a current production backlog exceeding $650,000 and the forecast for 2023 remains optimistic with additional opportunities in the pipeline.
If you are interested in acquiring a business, please contact our office to discuss.