Looking for a mechanical engineering / metal construction company with 15 - 50 employees in Southern Germany.

Location

Southern Germany

General Information

Industry

Industry

Type of Company

Multiple options:

• Electrical Industry
• Mechanical Engineering
• Metal Industry
• Packaging Industry
• Plastics and Rubber
• Transformation
• Defense and Shipbuilding Industry

Legal Entity

• Sole Proprietorship
• Partnership
• Corporation
• UG
• GmbH
• Public Limited Company
• Cooperative
• KGaA
• AG & CO KG
• None
• Foreign Legal Entity

Type of Transaction

Shares

Business Life Cycle

• Start-up Phase
• Young Company
• Established for 5 years or more

Employees

• 10 - 50

Type of Buyer

Strategic Acquisition

Financial Information

• Revenue last fiscal year: € 1,000,000 - > 5,000,000
• Price expectation: € 0 - > 5,000,000
• Earnings before Taxes: € 0 - > 5,000,000

Company History / Background

Sought Companies:

• Industry: Mechanical Engineering, Metal Construction, Manufacturing Industry, Logistics
• Key Figures: Revenue 1.5 – 20 million, min. 10% EBIT (Earnings Before Tax, adjusted)
• Region: preferably Southern Germany
• Middle management level preferred

Company Activities

My two co-founders and I bring the necessary technical background as former engineers at Daimler and Porsche. In addition, we have successfully built our own business over the past three years: our real estate trading company. This company now employs 18 people, achieved a revenue of about € 4.5 million in 2023, and generated an EBIT margin of approximately 10% – despite the challenges posed by rising interest rates, which have significantly affected many competitors.

Our success strategy is based on innovative marketing methods: We attract our customers and employees organically through Instagram as well as through our podcast, which ranks among the top 5% of video podcasts on Spotify.

Unique Selling Propositions

Our mission is to lead medium-sized mechanical engineering companies like yours into a successful future. We understand the typical challenges of the industry such as skilled labor shortages, marketing, and digitalization/AI, and have made it our goal to actively solve these issues as part of a business succession. This allows these companies to continue focusing on their technical strengths and remain competitive.

Other Details of the Purchase Price Structure

Average EBIT of the last 3 years as a multiplier of 4 – 6x as the purchase price, plus cash balance minus liabilities. Seller loan 15 – 35% over 3 – 8 years, interest-bearing. For financing discussions, we are happy to collaborate with the company’s house bank or utilize our bank contacts and private investors. A subordinated seller loan is required for both financing and to motivate the seller for a smooth handover of the company.

Consulting contract as an additional purchase price component over x years. The seller's involvement is only estimated at 6 – 9 months and, if both parties deem it sensible, possibly even beyond that.

A higher purchase price is conceivable as an earnout as a sales commission.