Successful Specialized Manufacturing Company

Business Overview:

This Successful Specialty Manufacturer was recently spun off from its parent, a large railroad equipment engineering and manufacturing business, but has been an operating division for 24 years. The business engineers and builds a proprietary, dependable, and cost-effective wood milling machine along with a complete set of accessories, including belt conveyors, sorting conveyors, infeed and outfeed systems, step feeders, knife sharpeners, and log handlers to reduce rough timber to highly marketable posts, beams and dowels in multiple sizes. Besides its proprietary product line, the shop also provides Custom Machining and Repair Services for other Montana manufacturers. Its operations have been ISO 9000 certified for the past 10 years.

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Property Features and Assets:

The business is a turn-key manufacturer housed in a modern high-cube facility on 1.93 acres built in 1989. The physical plant includes a 9,240 sq. ft. engineered steel building, fully heated and sprinkled with mezzanine and ground floor office space, loading docks, and a 3,200 sq. ft. Quonset-hut style final-assembly building with a fenced yard and paved parking. The site is located off a major commercial street near an intersection for Interstate Highway I-15. Assets = $1,222,370

Market Competition and Expansion:

Competition is light for the industry primarily because of its niche character and the proprietary nature of the company's products. The business has a very solid path for future growth by expanding the number of installed machines throughout North America. There is untapped potential for add-on growth internationally and more aggressive marketing. An expanded base will drive more demand for maintenance and repair parts which will supercharge the bottom line. Projected Gross Revenue through September exceeds all of last year with over $1MM of firm orders for new machines. 

Reason for Selling:

The owners would like to retire.

Additional Details:

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