40-Year Precision Hydraulic Tool Manufacturer – Asset-Backed Turnaround Opportunity
This is a rare opportunity to acquire a long-standing, highly specialized manufacturer serving industrial OEMs in a narrow, defensible niche. For over four decades, the company has produced tight-tolerance, made-to-print hydraulic cutting tools relied upon by OEMs and distributors where precision, repeatability, and documented quality are mission-critical.
The business historically generated $1.2M–$1.4M in annual revenue and built a respected reputation within its segment. Following a period of leadership disruption and reduced commercial focus, sales declined significantly over the past several years. The company is currently operating at a loss due to underutilized capacity and fixed overhead exceeding current revenue levels.
Importantly, the decline was not driven by quality failures, product obsolescence, or structural market contraction. The company’s products remain application-critical, customer switching costs remain meaningful, and the core capabilities remain intact. The revenue contraction reflects reduced sales activity and limited customer follow-up during a prolonged leadership gap—not deterioration of the underlying business.

Operationally, this is not a distressed or broken enterprise. The facility is clean, organized, and well maintained, with no major repairs required. Equipment is production-ready, properly maintained, and capable of supporting higher throughput without significant capital expenditure. Manufacturing workflows, quoting processes, and inspection procedures are in place and functional.
The workforce is experienced and stable, with most employees being long-tenured and deeply familiar with the product line and customer requirements. The culture is steady and production-oriented, and the team continues to deliver quality work despite reduced volume. Institutional knowledge remains embedded within the organization, providing continuity and a strong foundation for disciplined growth under new leadership.
The asking price has been structured conservatively and is supported primarily by tangible assets rather than projected earnings. Finished inventory has been marked down to approximately one-third of book value, and work-in-process has been discounted to roughly 10% of cost to reflect completion requirements. Machinery and equipment are included at recent appraised values. Over 1,200 historical customer accounts and contact records are also included, along with the documented processes and production infrastructure required to scale.
The business is currently operating at roughly 35% of practical capacity, meaning substantial incremental revenue can be supported without major capital investment. Fixed costs are already in place, and improved utilization can meaningfully enhance operating performance under focused leadership.
Additionally, the business maintains documented production processes, customer drawings, quality control records, and established vendor relationships. Production workflows, quoting structures, and inspection protocols are already in place, reducing onboarding risk for a new owner. The transition period will include operational walkthroughs and knowledge transfer to ensure continuity.
This opportunity is best suited for a strategic acquirer, hands-on operator, or manufacturing platform buyer who understands disciplined sales execution and capacity utilization. The foundation exists. What is required is committed leadership and commercial accountability to unlock its full potential.
Proof of funds and buyer qualification required prior to release of confidential information.
Confidential details available upon execution of NDA.