Entrepreneurial Opportunity 2021-04: Project Tower

Read full press release here (10/4/2021): “Company selling industrial division.”

Basic Information

  • Type of Opportunity: Purchase a powder coating business
  • Opportunity ID: TSEO 2021-04, Project Tower.
  • Posting Date: December 6, 2021.
  • Closing Date: February 7, 2022.

Description of Opportunity

  • A growing local Seneca County manufacturer is wanting to sell a successful industrial service business (powder coating) they purchased in 2011. At the time, they bought that business to bring that function in-house, and they now have that capability.
  • What they don’t want or need to do is to continue to service the other external customers this business currently has in a 60-mile radius.
  • The powder coating business has averaged annual sales of $335,000 over the last five years with a profit margin averaging 28%.
  • Selling the business will also allow the local manufacturer to devote the current 7,000 to 10,000 square feet it currently occupies to core manufacturing, which will also be the space required to operate the business.
  • There are currently five employees running this, but those employees will stay with the current employer and be folded into other operations, so new employees will have to be recruited.

Terms

  • Asking Price: $300,000. Equipment included. Inventory not related to the seller included.
  • Timing: as soon as possible.
  • Ongoing Support: The manufacturer will provide support and serve as a resource to help the purchaser learn the business. When they purchased it in 2011, they did not have background in powder coating and were able to successfully navigate the business.

How To Explore the Opportunity

  • Step 1: Pre-Qualification. Contact David Zak, President & CEO of TSEP, at zak@tiffinseneca.org or by phone at 419.912.1150 to discuss your interest in the opportunity.
  • Step 2: Further Discussion. After pre-qualification by TSEP, your name and contact information will be passed along to the business owner, who will initiate further discussion if interested.
  • Step 3: Due Diligence. After connecting with the pre-qualified entrepreneurs and businesses of their choosing, the manufacturer will either select one and begin discussions, and the due diligence process will begin for both the seller and purchaser.
  • Step 4: Deal. If due diligence goes well, then the parties will move forward with the deal according to agreed-upon terms.