This industrial electronics product manufacturer specializes in the design, manufacturing and systems integration of mission critical electronic components. The firm excels at custom production runs with punching, forming, milling, powder-coating, baking and other key processes taking place in-house. The business boasts over 50 years of industry goodwill, making it a well-known blue-chip brand name and established supplier for the aerospace & defense, communication, energy, medical, science & research, test & measurement, transportation, artificial intelligence, maritime and other industries that have exacting specifications and tolerances. An estimated 60% of revenues are derived from direct OEM product sales with the balance via their well-established nationwide electronic distributor network.
The 22k square foot facility leases for $22.5k per month on a secure lease until 6/2024 with a 5 year option. All of the company’s furniture, fixtures, equipment, and unparalleled industry goodwill will be included in the sale. An estimated $1.65 ml in inventory will be sold at cost at close in addition to purchase price.
While some competition exists this firm boasts a significant competitive advantage due to their engineering expertise coupled with their vertically integrated shop, which allows them to excel at prototyping. These advantages provide them unparalleled product development prowess and help them to offer their loyal client base shorter production runs and quick-turn around times.
The business can benefit from a full-time working owner with a basic electronics background who is focused on operations and long-term growth. Due to the management structure, staffing may be optimized while sales and marketing initiatives pursued. In fact, because they are incumbent industry specialists they have maintained top line revenues without pro-active sales staff. Rather, their customer service team operates as ‘order takers’ that also assist OEM manufacturers with their design expertise and technical support. Significant opportunity exists to return to traditional ad and marketing campaigns (e.g. trade magazines), hire sales representatives, or create internal efficiencies via process improvement and equipment upgrades. Finally, hiring an additional programmer will enable the firm to pursue the significant job shop available that they have the skill, equipment and capacity to facilitate.
This may be an ideal merger opportunity for a circuit board manufacturer or a turn-key job shop operator / assembler who can capitalize on this firm’s brand name and coveted client base. This may allow them to gain instant industry credibility and cross-promote their existing product lines.