Default Company
Sell Side Listing

Industrial Parts Distributor of International Capital Equipment

Industry Focus Aerospace/Defence, Automotive, Building Materials, Construction, Industrials, Manufacturing
Region United States
Size - Revenue $4,000,000
Size - EBITDA $1,125,000

Company Overview

  • Started in 2000, the company’s core business is providing parts and servicing for European built capital equipment focused in the woodworking industry as well as plastics, rubber, automotive, aerospace and other various manufacturing industries; most of these relationships are exclusive in nature.
  • They continue to expand their customer base through additional product lines as well as their strong reputation of service and quality.
  • Their customers are in the United States, Canada and Mexico with a strong concentration in the Southeast.

Transaction Overview

  • Lean business model allows for expansion of product offerings from current suppliers.
  • Efficient procurement process allowing for timely delivery to customer base.
  • Additional sales force to directly increase revenues given existing manufacturing relationships.
  • Opportunity to migrate business model to annual service contracts creating stable monthly revenue stream.

Investment Highlights

  • Operates in a 5,000 square foot facility with 8 years of 10 year lease remaining in the Southeast.
  • Company can be rolled up with a larger distribution company and location can be sub leased if needed.
  • The company has a consistent spare parts revenue stream that makes up 80% of sales. The remaining 20% comes from sale and installation of used equipment, preventive maintenance and repair services at manufacturing sites.
  • The customer base is well diversified with over 200 active customers.
  • The company is able to purchase parts directly from the overseas manufacturers at a very competitive price relative to their competitors allowing for stronger margins.
  • Inventory levels are kept at a minimum level given their ability to place orders directly with manufacturers.
  • 4 person staff (2 of which are full time contractors and 2 full time employees).

Projected Revenues and EBITDA

  • 2016 Revenue: $4.0mm; EBITDA: $1.125 mm
  • 2017 Revenue: $4.6 mm; EBITDA: $1.400mm
  • 2018 Revenue: $5.0mm; EBITDA $1.500mm

Copyright © 2018 Divestopedia Inc. - -