The Company is an installer of factory facility infrastructure, including conveyor systems (power & free, EMS, friction drive, roller, etc.), ASRS/rack systems, and equipment-support structural steel. The Company primarily serves clients in the automotive, distribution, and manufacturing industries. The Company is well-known for its high-quality work, attention to detail, and experienced team, and has built itself a sterling reputation.
Key Aspects
- The Company grew revenue and adjusted EBITDA at compound annual growth rates (CAGRs) of 34.5% and 101.0%, respectively, from 2023 to the trailing twelve months (TTM) ending April 30, 2024.
- The Company has developed a strong relationship and strategic partnership with one of the world's leading material handling OEMs which has generated strong recurring revenue for the Company.
- The Company has built a strong pipeline, with approximately $6.4 million in backlog projects from one of its largest clients.
- The Company operates as an asset light business which allows for flexibility in the type and size of the projects the Company pursues while simultaneously increasing the geographic scope of the Company.
Opportunities
- Penetrate new industry segments to expand the client base and diversify revenue streams through increased service offerings and continued equipment innovation.
- Implement new marketing strategies and increase social media presence to reach clients in new territories.
- Further pursue the use of long-term contracts to increase recurring revenue and expand client retention strategies.
- Incorporate artificial intelligence and automation into current systems to further improve efficiency and processes.
Headquartered
• Midwest, United States
Current Markets
• The Company serves clients in the automotive, manufacturing, distribution, industrial, and construction industries across the United States.
Real Estate
• The Company operates out of a 1,900 sq. ft. facility leased from an unrelated third party. Management notes that the lease for the facility is assumable post-sale.
Shareholder Objectives
• The Company is owned by four owners who are seeking to financially de-risk and pursue other unrelated opportunities. Two of the owners are active in the management of the Company, one owner is minimally involved, and one owner is inactive. All four owners are in agreement of the sale of the Company and are open to a variety of deal structures.
