An area my business acquisition is focusing on are machine shops who produce the same part over and over again. These shops typically specialize in CNC and/or screw machining for oil and gas, automotive, medical, aerospace, and other industrial end markets.
Below is a###-###-#### ft view of value drivers I am looking at for an up to $5 million EBITDA business.
A strategic partner who has deep expertise and resources in this space will further strengthen my certainty to close the transaction.
- Produce the same part over and over again ... don't want onesies twosies
- 50% or more revenues from non-regulated parts that can be produced abroad
- Oil and gas end market a plus (this is industry where my strategic partner built and sold his parts manufacturing business)
- Less cyclical " recession proof " end markets a plus
- Owner looking to retire a plus
$1-2m EBITDA is also fine so long as we can implement our business plan to maximize production capacity in North America while establishing an additional source of production abroad in Vietnam.
Comment or DM if there is a business in your pipeline or network that can be a fit and I will be happy to explain in more detail.
Many thanks,
Jordan
You'll need to be thoughtful about your outsourcing proposition. At some point, customer may not see your value and go direct, as you are changing models from producer to broker / distributor.