Extruded Aluminum Products Manufacturer

Business Summary: NEO Business Advisors represents a rapidly growing light manufacturing and engineering business with a line of proprietary deigns for extruded aluminum and fabricated steel products for commercial construction and critical infrastructure applications. The Company has grown rapidly since inception through innovative design, continuous process improvement, forging valuable supplier partnerships, and strategically acquiring customers. The Company has built a strong and diverse customer base on a reputation of innovative products, industry leading quality, excellent customer service, and quick lead times. The top 10 customers account for approximately 80% of revenue with no single customer accounting for more than 20% of revenue over the past three year period although customers may account for more than 20% of review in a single year period as buying cycles typically span more than a one year period. The business owns proprietary designs including aluminum extrusion dies for 10+ structural design styles as well as their own version of the industry leading style that is compatible with all competitor products. The owner is looking for a smooth transition of ownership to a buyer who can bring the resources to scale the business on the foundation they have built.

Financial Overview:

Revenue by Year:

2023 - $7,651,979
2022 - $5,815,660
2021 - $4,195,629

2 Year Weighted Average Revenue - $6,917,451

Adjusted EBITDA by Year:

2023 - $1,138,850 (14.88%)
2022 - $876,653 (15.07%)
2021 - $467,161 (11.13%)

2 Year Weighted Average Adjusted EBITDA - $1,033,971

Furniture, Fixtures, and Equipment (FF&E): FF&E of $384,650 is included in the asking price and consists of all product dies and fixtures, customer conveyor system assembly lines, two air compressors, drill presses, band saws, hand tools, welders, plasma cutters, ironworker, stamping press, five forklifts, flatbed delivery truck, pallet racking, miscellaneous hand, air and battery powered tools and other support equipment along with all office furniture, computer systems, software, and phone systems.

Working Capital: Working Capital of $200,000 is included in the asking price and consists of Inventory of $150,000 along with Accounts Receivable of $775,000 and Accounts Payable of $725,000 with the final sale price to be adjusted up or down for actual amount of Working Capital at time of closing.

Real Estate: Real Estate is leased by the seller for $3,700/month plus utilities and includes a combined 30,000 square foot of warehouse, manufacturing, and office space. The lease terms are extremely favorable, and the original renewable 3-year lease agreement is transferrable.

Growth and Expansion: The owner has identified several key opportunities for growth including but not limited to a strategic acquirer, targeting complimentary market opportunities and industry verticals, adding in-house aluminum and/or plastic extrusion lines, adding a second shift to further capitalize on existing facility and equipment, and adding a rental division of the business. The business offers an extremely well-established foundation a buyer can build on with industry leading product quality and an excellent brand reputation. The business is well situated for a strategic buyer who has the experience, leadership, and resources to scale the business and invest in growth.

Reason for Selling: The owner is looking to sell to a financial or strategic buyer who has the experience and resources to take the business to the next level and scale.

Support & Training: The owner is willing to stay on for a reasonable time after a sale to ensure a smooth transition of the business operations and relationships with mutually agreeable terms and compensation during the transition period.