Asking Price: $895,000

Gross Revenue: $1,727,314

Cash Flow: $231,280

Inventory: $58,250 (Not Included in Asking Price)

FF&E: $22,345 (Included in Asking Price)

Seller Financing: Seller will consider holding some paper (10% or?) depending on Buyer strength

Broker Observations:
41 pg Offering Memorandum available w/NDA. Call 262-369-0787 or email Kris@broadbridgeinc.com. Company’s information appears to be quite complete, accurate & timely. Getting data for Valuation & OM was a pleasure. In our experience companies with good information: financial, engineering, & customer-related tend to be well run & profitable like this one. Strong information base is a big plus to Buyer. Seller relates to customers from respectful strength. He’s confident in Company’s product & service yet fully recognizes business is about the customer. Result appears to be mutual respect & win-win relationships. As Buyer you’ll walk into this positive situation we don’t see all that often. Company has a collegial culture among the workers. We know from experience this is strong benefit in fab industry where technical fab challenges & applied engineering thinking solidify customer relationships & enable asking strong but fair pricing. Production equipment base is good & a competitive advantage. 180 active customer base is long-term, wide & loyal with diversity in industries served. We think exploring industry segments, identifying a few to “go after”, then actively selling is Buyer’s success recipe & with little chance of failure. Seller never had personal bent toward selling & Company grew at a rate which satisfied him. Active selling to new customers would nicely round out this Company & result in significant growth for new owner. By selling we mean executing fundamentals, basic blocking & tackling of good business-to-business selling & long-term relationship building. This should be done under “watch it” of carefully maintaining positives discussed previously. Conclusion: we see this as a well-run Company, above average in rounded management & operation subject to comments on selling. We’re pleased to present the Company & believe it can be grown significantly. Sincerely, Kris

Growth:
Company’s value proposition: high quality fab, timely delivery, & high-touch customer service at fair price. Has good reputation solving tough technical fab challenges. Seller 1) gets strong pricing & margins in return for customer focus & quality performance. 2) Finds stable customers where company-to-company loyal relationship can be had. 3) Stays away from big corp’s who don’t have win-win/attitudes. 4) Looks for strong signs of fiscal responsibility in new customer-prospects. With preceding profile this Company will continue growing.

Year Established: 1986

Employees: 12 full time -

Facilities: Company has one of most extensive lists of structural fab & steel rolling equipment in Fox Valley. Is in good working order w/no deferred maintenance. The Company leases a shop with supporting office: total 17,252 sq ft. on 2.5 acres. 3 cranes: 3, 5, & 10 ton. A complete equipment list & & building description & photos are in the Offering Memorandum. Building is leased triple net - $5,500/mo w/4 yrs. 10 mo. remaining. Building owner will sell building to Business Buyer. Broadbridge has listing. Ask Kris Kavelaris, Broker for Price & details.

Market Outlook and Competition: Company’s market is structural & specialty steel fab w/added niches in paper mills, wastewater plants & ornate. Market region is customers HQ’d or w/presence in Fox Valley WI. Products are typically high dollar value shipped throughout US. Company appears to have most extensive/heaviest angle rolling equipment in Valley. Competition is significant; some good/some not. Has 5-6 primary structural steel competitors, 1-2 in wastewater. Balance is general fab shops not focused on structural &as result lack experience &equipment for heavy fab. While no business is recession-proof, the Company has benefitted from being in the Fox Valley which as a region tends to have milder fluctuations in business activity in economic cycles than the nation on a macro level. Its business trends obviously are related to the construction trades but here, again, public sector infrastructure spending tends to have a moderating effect on the degree of fluctuation.

Management Training and Support: Seller wants Buyer success in continuing profitable operations. Seller suggests work 1) Full time 3-4 weeks post-sale/closing as part of sale price 2) 10-20 hours/week for 6-8 added weeks at to-be-determined hrly or other rate 3) Be open to part-time or sub-contract employment if somewhat flexible on a long-term basis at to-be-determined rate.

Reason For Selling: The Seller simply wishes to retire. He’s had a long and financially rewarding and personally enjoyable run with the Company over the past 20 years. He’s fortunate to have family and hobby and other personal interests, and he wants to begin the adventure of that next stage of life.