$1.7M Manufacturing Company Acquisition in Wixom MI: Charles M. Barr Delivers SBA Financing for Metro Detroit Industrial Expansion
LVRG Business Funding Closes Complex Manufacturing Acquisition in Oakland County's Industrial Corridor
Strategic Manufacturing Acquisition Transforms Wixom Business Landscape
Charles M. Barr and LVRG Business Funding announce the successful closing of a $1.7 million SBA 7(a) acquisition loan for the purchase of Precision Components Manufacturing in Wixom, Michigan. This strategic acquisition represents a significant milestone in Metro Detroit's manufacturing sector and demonstrates continued confidence in Southeast Michigan's industrial capabilities.
Located in Oakland County's thriving industrial corridor, this 18-year-old precision machining company has been a cornerstone supplier to Michigan's automotive and aerospace industries. The acquisition strengthens Metro Detroit's manufacturing base while positioning the acquiring company for expanded operations throughout Southeast Michigan.
About Precision Components Manufacturing - A Wixom Success Story
Established in 2006, Precision Components Manufacturing has built its reputation as a premier supplier of precision-machined components to tier-one automotive suppliers throughout Metro Detroit. Operating from their 25,000 square foot facility in Wixom's industrial district, the company specializes in:
Core Manufacturing Capabilities:
CNC precision machining for automotive applications
Aerospace component manufacturing and finishing
Custom tooling and fixture design
Quality control and inspection services
Just-in-time delivery to Metro Detroit manufacturers
Market Position: The company serves major automotive manufacturers and suppliers throughout Southeast Michigan, including operations in Detroit, Warren, Sterling Heights, Troy, Auburn Hills, and Pontiac. Their customer base includes suppliers to Ford Motor Company, General Motors, and Stellantis, positioning them at the heart of Michigan's automotive manufacturing ecosystem.
Financial Performance: With consistent annual revenues of $2.8 million and EBITDA of $560,000 (20% margin), Precision Components Manufacturing represents the type of stable, profitable manufacturing operation that characterizes Oakland County's industrial strength. The company's strong cash flow and debt service coverage ratio made it an attractive acquisition target for SBA financing.
The Strategic Acquisition: Expanding Metro Detroit Manufacturing Footprint
The acquiring company, an established manufacturing group with operations in Novi and Rochester Hills, recognized the strategic value of adding Precision Components Manufacturing to their portfolio. This acquisition enables:
Geographic Expansion: Adding Wixom operations complements existing facilities in Oakland County, creating a comprehensive manufacturing network throughout Metro Detroit.
Capability Enhancement: Precision Components' specialized CNC machining capabilities enhance the acquiring company's service offerings to automotive and aerospace clients.
Customer Base Expansion: Access to established relationships with tier-one suppliers throughout Southeast Michigan's automotive corridor.
Operational Synergies: Combining operations creates opportunities for improved efficiency and expanded capacity across multiple Metro Detroit locations.
Metro Detroit Manufacturing Market Dynamics
Southeast Michigan's manufacturing sector continues to demonstrate resilience and growth, driven by several key factors:
Automotive Industry Strength: Michigan remains the center of North American automotive manufacturing, with major operations throughout Metro Detroit from Detroit to Dearborn, from Warren to Sterling Heights.
Diversification Opportunities: Metro Detroit manufacturers are successfully diversifying into aerospace, defense, and advanced manufacturing sectors.
Skilled Workforce: Oakland County and surrounding areas maintain one of the nation's most skilled manufacturing workforces, supported by partnerships with organizations like the Michigan Manufacturers Association.
Infrastructure Advantages: Metro Detroit's transportation infrastructure, including proximity to major highways and shipping networks, provides competitive advantages for manufacturers serving national markets.
Why This Wixom Acquisition Required Specialized SBA Financing
Manufacturing acquisitions present unique financing challenges that require specialized expertise:
Asset Valuation Complexity: Manufacturing facilities require lenders who understand equipment valuation, inventory assessment, and facility requirements.
Cash Flow Analysis: Understanding manufacturing cash flow patterns, seasonal variations, and working capital needs requires specialized underwriting expertise.
Industry Knowledge: Lenders must understand automotive supply chain dynamics and the cyclical nature of Metro Detroit manufacturing.
Speed Requirements: Manufacturing acquisitions often involve time-sensitive opportunities where financing delays can kill deals.
LVRG's Manufacturing Acquisition Expertise in Metro Detroit
Charles M. Barr and LVRG Business Funding bring unique advantages to Michigan's manufacturing acquisition market:
Local Market Knowledge: Based in Metro Detroit with deep understanding of Southeast Michigan's manufacturing ecosystem, from Oakland County's industrial corridor to Macomb County's growing manufacturing base.
Specialized SBA Network: Relationships with 30+ SBA lenders who actively fund manufacturing acquisitions and understand the complexities of industrial financing.
Michigan Manufacturers Association Connections: Strong relationships within Michigan's manufacturing community, including connections through the Michigan Manufacturers Association and other industry organizations.
Proven Track Record: Extensive experience financing manufacturing acquisitions throughout Metro Detroit, from small precision shops to major industrial facilities.
The 38-Day Close: Speed That Matters in Manufacturing Acquisitions
This $1.7 million acquisition closed in just 38 days, demonstrating LVRG's ability to execute complex manufacturing deals with exceptional speed:
Day 1-7: Professional deal packaging highlighting Precision Components' market position, customer relationships, and growth potential within Metro Detroit's manufacturing sector.
Day 8-21: Pre-underwriting and presentation to specialized manufacturing lenders within LVRG's network, creating competitive bidding environment.
Day 22-30: Final underwriting, equipment appraisals, and environmental assessments coordinated simultaneously to eliminate delays.
Day 31-38: Final approvals, closing coordination, and funding completion.
Metro Detroit Manufacturing Acquisition Trends
Several trends are driving manufacturing acquisition activity throughout Southeast Michigan:
Industry Consolidation: Smaller precision manufacturers are joining larger operations to achieve scale and compete for major automotive contracts.
Geographic Expansion: Successful manufacturers are expanding their footprint throughout Metro Detroit's industrial corridors, from Detroit and Warren to Wixom and Novi.
Technology Upgrades: Acquisitions often focus on companies with advanced CNC capabilities and quality certifications required by automotive OEMs.
Succession Planning: Many 15-20 year old manufacturing companies throughout Metro Detroit are being acquired as founders approach retirement.
Oakland County Manufacturing Hub Advantages
Wixom's location within Oakland County's manufacturing corridor provides strategic advantages:
Automotive Supply Chain Access: Proximity to major automotive operations in Auburn Hills, Troy, Pontiac, and Detroit ensures efficient supply chain integration.
Skilled Workforce: Oakland County maintains one of Michigan's most skilled manufacturing workforces, with technical training programs supporting advanced manufacturing.
Transportation Infrastructure: Easy access to I-96, M-5, and other major highways connecting to Metro Detroit's automotive manufacturing base.
Industrial Infrastructure: Established industrial parks and facilities designed specifically for precision manufacturing operations.
Michigan Manufacturers Association Impact
The Michigan Manufacturers Association continues to support Metro Detroit's manufacturing growth through:
Advocacy: Representing Michigan manufacturers' interests in policy discussions affecting Oakland County and Southeast Michigan operations.
Workforce Development: Supporting training programs that maintain Metro Detroit's competitive manufacturing workforce.
Networking: Connecting manufacturers throughout Metro Detroit, facilitating partnerships and acquisition opportunities.
Industry Intelligence: Providing market data and trends that inform strategic decisions for manufacturers from Wixom to Warren.
SBA 7(a) Advantages for Manufacturing Acquisitions
The SBA 7(a) program provides unique benefits for Metro Detroit manufacturing acquisitions:
Lower Down Payments: Typically 10-15% down versus 25-30% for conventional financing, preserving working capital for operations.
Longer Terms: Up to 10-year terms for equipment and 25-year terms for real estate components reduce monthly payments.
Competitive Rates: SBA rates often beat conventional manufacturing acquisition financing.
Flexible Structures: Ability to finance equipment, inventory, working capital, and goodwill in single transaction.
The Future of Manufacturing Acquisitions in Metro Detroit
Southeast Michigan's manufacturing sector continues to evolve, with opportunities spanning from Detroit's urban manufacturing renaissance to suburban industrial parks in Wixom, Novi, Rochester Hills, and throughout Oakland County.
Key factors driving continued acquisition activity include:
Automotive Electrification: Traditional manufacturers are adapting to electric vehicle supply chains, creating acquisition opportunities.
Nearshoring Trends: Companies are relocating manufacturing closer to Detroit automotive operations, increasing demand for Metro Detroit facilities.
Technology Integration: Manufacturers with advanced capabilities are acquiring traditional operations to expand their technology footprint.
Geographic Consolidation: Successful manufacturers are building comprehensive Metro Detroit networks through strategic acquisitions.
Ready to Explore Manufacturing Acquisition Opportunities in Metro Detroit?
If you're evaluating manufacturing acquisition opportunities throughout Southeast Michigan – from Wixom to Warren, from Detroit to Rochester Hills – Charles M. Barr and LVRG Business Funding can provide the specialized SBA financing expertise that makes strategic acquisitions possible.
Our deep understanding of Metro Detroit's manufacturing landscape, combined with relationships throughout the Michigan Manufacturers Association network and access to specialized SBA lenders, ensures your acquisition financing accelerates growth rather than creating delays.
Contact Charles M. Barr at LVRG Business Funding: Phone: (855) 998-5874 Based in Metro Detroit, serving Southeast Michigan manufacturers, and across the country.
About Charles M. Barr and LVRG Business Funding: With over 20 years of experience and 10,000+ businesses funded nationwide, LVRG Business Funding specializes in SBA acquisition financing for Metro Detroit's manufacturing community. Based in Southeast Michigan, Charles M. Barr maintains relationships with 30+ specialized SBA lenders and extensive connections throughout the Michigan Manufacturers Association network, serving precision manufacturers, automotive suppliers, and industrial companies throughout Oakland County, Macomb County, Wayne County, and the greater Detroit metropolitan area.