INVESTMENT OPPORTUNITY: RAPIDLY GROWING AUTOMOTIVE AFTERMARKET MANUFACTURER Hedges & Company has been retained by a profitable manufacturing company with positive cash flow to find an investor to buy out the original angel investor. This successful startup is in the automotive performance aftermarket and has a strong management team led by a general manager with 14 years of manufacturing experience in this company's segment. This is an excellent opportunity for an individual investor or as a strategic add-on for an existing manufacturer.
2007 sales are projected at $1.2 million, approximately doubling 2006 sales. The company has a blue-chip list of wholesale distributor customers. At the recent SEMA Show in Las Vegas, it signed on another major customer, one of the nation's largest retailers. Current inventory is approximately $500,000 with around four turns a year.
The company is poised for continued, rapid growth in a performance segment that has few emissions regulations. They are currently manufacturing products for the tuner market, focusing primarily on products for Honda, Acura, Lexus, Nissan, Toyota, and Scion vehicles. It has more than 300 part numbers in a well-rounded product line and can profitably exploit small niches with sales volumes of less than 1,000 unit sales per year.
Hedges & Company's products are high quality and the company has a minimum advertised price policy in place to avoid price erosion to protect the brand. The company's catalog and packaging are also high quality and the company's Web site is well-designed and easy to navigate.
The management team includes an experienced R&D manager with fabrication skills and the company can design and introduce new products quickly.
Products are developed to produce horsepower gains using an in-house chassis dyno that also allows monitoring of air/fuel ratios and other engine variables. The management team has strong manufacturing relationships overseas and has been able to lower costs by outsourcing components while maintaining a high quality product line. Profit margins are high.
One of the strengths of the management team is in the strategic relationships that have been developed. The company has a close relationship with a vehicle OEM and will be cross promoting their products with a widely recognized energy drink brand and snowboard brand. For more information, contact Jon Hedges at (330) 474-1650 or [email protected].