Niche high-margin specialty construction equipment parts supplier
August 23, 2023
by an investor from University of Southern California - Marshall School of Business in Boston, MA, USA
This East coast company is a major aftermarket suppliers of wear parts and spares for niche construction equipment used by excavators, quarries/mines, demolition, utilities, and infrastructure contractors. The company has shown consistent organic growth and profitability over its 15-year + history.
Their customers include end-user contractors as well as B2B through repair facilities around the country. There is a very high level of repeat customers due to their high-quality parts, service, and knowledgeable employees.
Direct competition is limited, and the industry overall enjoys strong margins###-###-#### has shown 64% overall gross margins to date.
The business is appropriately staffed with office and warehouse/shop employees. The current owner is active in, but not integral to the day-to-day operations of the business and much of his current activity could be delegated/outsourced. This suggests a smooth transition as well as ample opportunity for a new owner-operator to bring the business to the next level.
from University of Southern California in Boston, MA, USA
from Keller Graduate School of Management of DeVry University in Centennial, CO, USA