Available for Acquisition [EXECUTIVE SUMMARY – 1247]

Precision Machining & Assembly Contract Manufacturing 

1. 75% of the revenue is repeating: The Company mostly produces the same parts for the same customers, year after year.
2. 31% adjusted EBITDA margins for 2022 and 2023: In 2024 it reached 45% margin with $5.095M adjusted EBITDA.
3. Exposure to a Stable Market: The Company derives most of its sales from medical instrument manufacturing sector that is not prone to economic turbulence. Since 2024 it has been diversifying to Semiconductor OEM market and Defense industries which the owner projects to reach over 22% of sales by 2026.
4. Backlog of $19.46 MM of Purchase Orders and Contracts through 2026.
5. Customer loyalty: The Company’s biggest customer recently consolidated its work down from 31 shops to just five, resulting in increased work for the Company.
6. Growth Potential: Opportunity for further growth and revenue generation as its main customer was acquired by an internationally known company with an international market for the customer’s products. This, and the shop consolidation, has resulted in rapid sales growth for the Company.
7. Retirement Sale: The owner has decided to retire, making this a rare chance to acquire a well-established and highly profitable company. However, the top management team of two could stay in place for up to 3 years to keep the company running if the new owner decides to keep them after the sale.
8. Employee turnover has been very low, with over 30 long-term full-time employees, many of them trained in-house. The shop has an excellent complement of Japanese made top-of-the-line milling machines and turning lathes consistently maintained in excellent working condition.
9. There was a quarter long dip in sales during the Summer of 2024. The medical device customer changed from building to inventory and began building to order. This meant working down inventories of product and rescheduling existing orders for later deliveries. That impacted sales for Summer 2024, with the production returning to normal starting in October, and Q4 of 2024 showing $3.4M in sales.