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Stainless Steel Fabrication for Foodservice
A western North Carolina stainless fabricator building and installing custom food-grade equipment for national restaurant chains it has served for decades.
Business Highlights
- Direct corporate relationships with several national restaurant chains, spanning decades
- An operations manager has independently run the business for several years
- NSF-certified fabrication for food-grade stainless steel equipment
- Fully equipped shop: waterjet, CNC, two shears, two press brakes and full fabrication capability
- A state-approved apprenticeship programme with a local college subsidises half of trainee wages
Considerations / Questions to Ask
- How concentrated is revenue among the national chain accounts, and are those master agreements or purchase orders?
- The operations manager effectively runs the business. What are their terms, and are they staying?
- Chains cycle through multi-year equipment refreshes. Where is the business in that cycle?
- What is the age and condition of the waterjet and CNC equipment, and what capital spend is due?
- Is the building owned or leased, and on what terms?
Opportunities
- The apprenticeship programme halves the cost of training welders, which is the binding constraint in fabrication
- An operator already in place means a buyer can be an owner rather than a welder
- Decades-old chain relationships are extremely hard for a competitor to displace
- NSF certification and field installation capability open adjacent foodservice customers beyond the current chains