Profitable Quality Control & Engineering Provider For Sale

Business description

Industry leader providing Inspection, Quality Engineering, Training & Consulting services that address manufacturing quality issues, to automotive industry manufacturers and suppliers throughout North America.

Established for over 20 years with repeat blue chip customers include GM, Toyota, Chrysler, Hyundai and Honda.

2008 Forecast:
Revenue $33M, earned approximately equally between Canada/US
EBITDA $1.78M with strong margins

Property information

Real Estate:

Lease

Other information

Expansion potential:

Growth Opportunities
They began diversifying their customer base in 2005 to include offshore OEMs manufacturing in North America and continue to do so. Their efforts have been successful, with Toyota and new Tier 1 suppliers becoming customers within the last 12 months. Growing and developing the existing relationships with OEMs can be leveraged to obtain further business with them and their suppliers. Opportunity also exists to apply the company’s quality control expertise to industries beyond the automotive sector. In addition, a significant tax saving opportunity can be realized from the company’s tax loss carryforward.

Competition / Market:

The quality-control inspection market is highly fragmented, with many small to mid-sized competitors, and two major competitors. Management estimates the market to be approximately $400 plus million. Despite the challenges in the automobile manufacturing industry, the never ending quest for quality by all OEMs and suppliers has resulted in steady growth of the quality inspection market.

Reasons for selling:

Parent has decided to divest itself of all non-core businesses.