Does anyone have experience with Industrial Maintenance companies?

searcher profile

July 30, 2024

by a searcher from IESE Business School in Madrid, España

Hello Searchfunder Community,

I hope this message finds you well. We have recently come across an exciting opportunity to acquire an industrial machinery maintenance and industrial structures construction company based in Spain, and I am reaching out to this esteemed community to gather insights and advice from those with experience in this sector.

About the Opportunity:

Location: Spain Industry: Industrial maintenance and construction of industrial structures (basically anything an industrial player could ask for... e.g. mechanized silos, steel buildings, piping, electrical facilities, etc.) Size: +10M€ revenues with 10-15% EBITDA margins and +150 employees Curiosity: The company has never done commercial outreach, all projects and maintenance contracts have come through Word of Mouth.

We are keen to connect with industry experts, searchers, and investors who have experience with:

- Acquiring and operating industrial maintenance companies.

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commentor profile
Reply by a searcher
from George Mason University in McLean, VA, USA
The industrial and commercial construction industry is very invested in the compartmentalized construction, also known as modular construction and prefab. Most people think of mobile homes when they think of modular, but really we are talking about for example 12 foot sections of steel raised cable tray wrapped around 16 generators that support the cabling interconnecting the generators to the switchgear and provide backup power to a 60 MW data center that houses all of the servers that allow you to upload tik-toks (Oracle).

All of that steel gets prefabricated at a third party vendor and delivered with all the nuts and bolts similar to an Ikea desk. It is a large and complex industry with not enough players. Reputation in projects is important in this industry, as well as networking.

Industrial maintenance is also very good for recurring revenue, as heavy duty sites need constant inspections and adjustment. In the US there are OSHA requirements for inspections and testing of components. Sometimes sites have in-house painters, welders, engineers and others for maintenance, but there is always a need for third parties when the lift gets to large for an in-house crew. I have no idea about the industry in Spain, my point of reference is Northern Virginia and the mid-atlantic in general.
commentor profile
Reply by a searcher
from The University of North Carolina at Chapel Hill in Atlanta, GA, USA
Not as an operator or an investor, but I have a lot of experience advising on M&A transactions in the industrial services and manufacturing sector. I have advised both large corporate clients and founder-backed businesses. Happy to connect, if that background is helpful to you.
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