This is a highly profitable and locally-owned industrial supply distribution Company for sale located in the Greater Western Michigan region. The Company serves over 100 metalworking companies within a 75-mile radius of its facility. Its longevity and profitability is the result of well-established relationships with local manufacturers and a keen ability to evolve alongside the markets and industries in its geographic region. Superior product lines, knowledgeable customer sales representatives, and the fact that the Company has been a part of the local community for decades, are all reasons that the Company is able to maintain such a significant proportion of the local industrial supply market year after year.
Experiential/Tribal Knowledge – In the distribution industry, there is no substitute for experience. The collective knowledge of the team provides the organization with advantageous knowledge about the companies it serves, the industries it works within and, the competitive landscape. This experiential knowledge informs decisions about what new prospects to target, the specific needs of existing customers, how to quote, and how much and what inventory to carry.
Low Turnover – The average employee tenure is very high and because of the small size of the team, the culture at the Company is very familial. Employees are loyal to each other and proud to be part of a Company that has been a key asset in the community for decades.
Low Customer Concentration – Top ten customers combined generate less than 50% of its revenue.
Highly Autonomous Business – Due to internal systems, well-defined roles, and self-directed employees, the owner is able to do essential tasks in approximately 20 hours per week.
Strategic Acquisition – An industrial supply distribution company with several product lines overlapping those of the Company could instantly gain greater economies of scale and access to a broad swath of manufacturing businesses in the region where this Company is active.
Investment in Automated Tooling Management Technology – For larger customers, the utilization of automated tooling management systems is almost certainly the future. While pursuing this strategy would require capital investment, the ROI could be exceptional.
Lead Generation – Marketing and intensive lead generation efforts have been minimal. While focusing on serving existing customers exceedingly well has been a successful strategy for the Company for many years, growth will require seeking out new customers and markets.
Asking Price Available On Request
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