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Established over a decade ago, this West Michigan company holds proprietary rights for a specific brand of machines. The company sells OEM parts and engineered parts orders for existing honing machines, die cast machines and planers. The company also builds and repairs custom machines for various applications.
During 2015, the company took on large jobs which had cost overruns resulting in the erosion of the company’s capital base. The majority owner of the company is not able to recapitalize the company through the leveraging of personal assets due to his health and age. As such, ownership is pursuing the sale of the entire company, but is open to a partial sale as well.
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Real Property Included
The parcel is improved with a 1-story steel building with approximately 24,000 SF. It was built c.1989, in standard industrial design. There is a gabled metal roof. The building is divided into two equal portions, an East section and a West. Each half has three overhead doors on its northern facade, 2 at truck-height and served by a truck-well, and one at grade. Each also has a personnel door serving a modest office section with airlock/entrances, restrooms, one private office, and one general office each. They are capable of serving two separate industrial users, or, with the simple opening of a door in the offices and one in the plant, a single entity. The facility is a steel-frame, steel-clad industrial building, approximately 200’ x 120, with approximately 18’ in eave height. The entire building’s exterior is sided with metal. In the north-central part of the building there is approximately 4,000 sq. ft. office section, divided into two roughly equal units, with each section having at least 1 private office and general office area. Each has suspended ceilings, dry-walled walls and commercial grade carpet and vinyl flooring. A plywood mezzanine over the office area is suitable for light storage only. There are three restrooms located next to the office. The remainder of the building is dedicated to industrial use. Its interior has exposed steel framing, and is insulated and heated with gas-fired, ceiling-mounted heaters and has recently installed energy efficient lighting throughout. The floor is a concrete slab. The building has an effective age of 20 years because of its’ apparent light wear and newer style of construction. Each half has two truck-height loading dock doors for sending and receiving, as well as one larger door at grade. The loading dock doors are 8x8’ doors with bumpers. The loading docks are served by a sloping truck-well (uncovered) for ease of servicing the building, one at each end of the north fac¸ade. The office areas are heated and cooled with forced air heating and cooling units. The building has been used for light industrial use or warehousing use. The building is improved for light industrial use, but has some flexibility in use. It can be expected to service this use well into the future, without major modification.
Bearing Raceway Hone Manufacturing – Currently, no one manufactures bearing raceway honing machines in the US. The buyer could be the only manufacturer of this US-made product and carve a niche for themselves. Bring Machining In-House – Presently, the Company outsources machining services. A strategic buyer with in-house capabilities for engineering (controls and mechanical) and machining could easily add the company’s capabilities to their own while reducing production costs and adding a brand name to their portfolio. Expand Service Offerings and Parts Sales – A new owner could diversify into other fields such as specialty machines or job honing. In addition, there are more opportunities to generate parts sales through more effective location of legacy machines throughout the world. One of the present owners has mapped out sales territories and a strategy and maintains interest in becoming a salesperson for the buyer.
Proprietary Designs – The Company has approximately 2 million prints of honing machine brands, die cast machine brands, and planer brands, and is the only supplier of replacement parts for the machines. A well-capitalized buyer can grow the business significantly through more effective sales and marketing. Real Estate – The Company is open to selling the real estate to someone that does not want to buy the business. The seller may be willing to lease back the property for a period of time. The real estate consists of a 24,000-square foot light industrial building on just under 2 acres of land. Surrounded by solid industrial companies, the location is also close to 196. Attractive SBA 504 financing may be assumed by an owner-occupied company with permission from the SBA. Management Transition – The company management is flexible in terms of transition time and is willing to stay on for an extended period in an employee capacity.
Large cost overruns in 2015 have eroded the company's capital base.
Both owners and the Company’s key employees are highly motivated and committed to seeing the business thrive. Owner #1 is open to staying with the company in an employee capacity for another couple of years. Owner #2 would be open to staying on for an even longer transition period. Owner #1 works full-time. His most valuable tasks include engineering and archiving. His least valuable task is processing payroll. Owner #2 works full-time. His most valuable tasks include inside sales, outside sales, and accounting. His least valuable task is working in the shop.
Available for qualified buyers
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