Custom Dry-Bulk Solids Equipment Manufacturer, Utah, Since 1956

$612K

SDE

5.1x

Multiple

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Full Editorial Writeup

This is a custom design and engineered equipment manufacturer serving the dry-bulk solids handling industry, founded in 1956 by two partners who saw an opening for reliable, high-quality equipment in a niche industrial market. Nearly seven decades of continuous operation is the headline here. Businesses that survive that long in industrial manufacturing tend to have deep customer relationships, institutional know-how, and a reputation that is very hard for a new entrant to replicate.

The company designs and builds engineered products and solutions for moving, storing, and processing dry-bulk solids, the kind of gear used across food processing, chemicals, agriculture, mining, cement, and other heavy-industry end markets. Custom-engineered equipment is a specification-driven, relationship-heavy business where buyers care more about reliability and support than lowest price, which supports pricing power and repeat/replacement-parts revenue.

At a $3.1M asking price against $612,298 in cash flow, the deal is priced at roughly 5.06x. That is a full multiple for a small industrial manufacturer, and it puts the burden of proof on earnings quality, customer concentration, and how much of the cash flow is genuinely transferable versus tied to the current owner's technical and sales relationships.

Why we like it

Nearly 70 years in business is the single most important fact in this listing. Longevity like this signals durable demand, a defensible reputation, and repeat customers who spec this company's equipment into their plants, all of which lower the odds of a demand cliff post-close.
Custom-engineered dry-bulk equipment is a sticky, specification-driven niche. Once a customer designs your gear into their process line, switching costs are high and replacement parts plus service create recurring, higher-margin revenue that a buyer can lean into.
The $612k cash flow on a small industrial base implies healthy margins for a shop this size. If that number is clean owner earnings, it gives a new operator real room to service acquisition debt and still reinvest in capacity.
This is a boring, unsexy, hard-to-replicate business. No one is spinning up a rival dry-bulk equipment brand with 68 years of installed base and reference customers overnight, which is exactly the kind of moat that compounds quietly for a patient owner.

How to improve it

Build a formal aftermarket and spare-parts program in the first 90 days. Installed equipment from decades of shipments is a captive service annuity, and most legacy manufacturers under-monetize parts, wear items, and preventive maintenance contracts.
Systematize the sales and quoting process so it does not live in the owner's head. Document specs, pricing logic, and past project files so a new sales engineer can quote jobs without the founder's tribal knowledge, which also de-risks the transition.
Segment the customer base and re-engage dormant accounts. Sixty-eight years of shipping equipment means hundreds of plants that have bought before; a structured outreach campaign to buyers due for upgrades or replacements can lift revenue with zero new customer acquisition.
Review lead times and shop throughput for bottlenecks. Custom manufacturers often lose margin to inefficient scheduling and rework, so mapping the shop floor and standardizing common sub-assemblies can expand capacity without new capital.
Raise prices deliberately on custom work and service. Long-tenured manufacturers frequently under-price relative to the value and reliability they deliver, and a disciplined 5 to 10 percent adjustment on quotes can drop straight to the bottom line.
Invest in a modern web presence and inbound lead capture. A 1956-era business likely gets most work through word of mouth, so a technical site with product pages, spec sheets, and quote forms can open a low-cost channel to new industrial buyers.

Diligence notes

Get actual revenue and a full P&L. The listing discloses $612k cash flow but no revenue, so you cannot assess gross margin, the mix of new equipment versus parts and service, or whether that cash flow figure is normalized or seller-adjusted.
Dig hard on customer concentration. Custom industrial shops often ride on a handful of large accounts, and if the top two or three customers drive most of the revenue, the 5x multiple is far too rich for the risk.
Assess owner dependency and key-person risk. Verify whether the founder or current owner personally handles engineering design, quoting, and key customer relationships, and confirm a real transition and training commitment before closing, since none is disclosed.
Evaluate the workforce and skilled labor situation. Legacy manufacturers frequently depend on aging welders, machinists, and engineers; understand who is retiring soon, what documented processes exist, and how replaceable the technical staff is.
Inspect the end-market exposure of the dry-bulk customer base. Mining, cement, and commodity-processing demand is cyclical, so map which industries drive revenue and stress-test the backlog and quote pipeline against a downturn in those verticals.

Source

Originally listed on BizBuySell. View original listing →