UNDER LOI - Canadian Searcher Seeking US Partner for Wood Products Manufacturer deal in Midwest

searcher profile

July 11, 2024

by a searcher in Burlington, ON, Canada

I have a business that I have under LOI that I face some logistically challenges on and looking to potentially bring in a partner acting as day to day operator (Equity available). The main challenge I face is I am based out of Canada where as this business is in the Mid West USA.

The business is a multi decade wood products manufacturer based out of the Midwest USA. They sell to global brands. Their product is a component they use in their product manufacturing (Component Part).

Deal structure:
Purchase Price: 1.6M USD (includes ~3m in raw material - 1m in machinery - and normalized working capital)
50% Seller Note (junior to bank debt)
50% Financing/Equity
SBA can be used if US Citizen is willing to partner
Owners looking to retire and sell to an individual with a passion for the industry, who will take care of the employees and continue to do right by their suppliers and customers- The main owner is willing to train for extended period of time. Additional family member willing to remain in the business if required as operations manager (plant manager)

Revenue: $10,000,000 to 11,000,000 USD (5 year average)
Adjusted EBITDA - $600,000 to $750,000 steady for 5+ years.
Currently operating with a 900K backlog (Trending for record year)
All sales are B2B - selling to global powerhouses in their respective industries

- Operating on 2 shifts - ability to add a 3rd shift is possible (sellers looking to retire they prefer to run as is).

Ideal Partner:
- Someone with history in the building material preferably in wood products industries
- 40 or younger (preferred not required)
- Located in or willing to relocate to MidWest USA.
- Long term vision - business can be a platform business rather than 5 year buy and sell plan.
- Operating/Management experience preferred (again not required)
- General other qualities - analytical, solution focused, people management etc etc.

About Me: (brief)
I have extensive experience in the wood products industry, specifically working with one of their customers products for nearly a decade. Im 32 years old with experience running sales teams north of 100m in annual revenue, building sales teams and creating new sales channels/markets. Located in Canada.

If this sounds like an opportunity you would be interested in please comment on this post and I will reach out to you directly. Due to legalities I will not be providing the companies name or exact industry unless you are someone that I wish to continue discussions further.


******EDIT/UPDATE: In order to provide clarity, this business is under LOI by I and I am looking to see if there is potential interest in having another equity partner/operator to join!


I will respond directly to those that fit the criteria*****

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commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
I am currently under LOI with a buyer for a larger business where 80% of the raw material is wood. The buyer also owns another business that makes construction industry products using primarily wood.
Happy to advance the proposal.
Few questions: Whay is seller willing to sell "significantly" below asset value? Is this positive cash flow business?
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Reply by a searcher
from Oregon State University in Eugene, OR, USA
Would love to learn more. - I represent a family office with a tenured history in the timber/wood products industries. Please email me @ redacted
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