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Electrical Component Company Equity Stake For Sale in Singapore

Interesting debt-equity deal, ASIA's largest magnet stockist company has 900 active clients and growing.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 2 - 5
Legal Entity Private Limited Company
Reported Sales USD 300 - 400 thousand
Run Rate Sales USD 370 thousand
EBITDA Margin 20 - 30 %
Industries Electrical Component
Locations Singapore
Local Time 9:07 AM Asia / Singapore
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 234 thousand for 30.0% stake (Native Currency: SGD 300,000)
Reason: (Debt & equity deal): 300K Investment is expected to be structured as a 50-50 Split between Debit-E... View More
Includes physical assets worth USD 156 thousand
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Business Overview
- Our value proposition: The ability to deliver the widest choice of sizes of any magnet to any Engineering PMET anywhere in the world within 5 business days.
- Magnet assembly manufacturing business based in Singapore with 3 employees and 8 years of experience in the industry.
- The owner has 20 years of experience in this industry.
- Products and services include mag-press, ditch magnets, clamping magnets, lifting magnets, separation magnets, pre-cast concrete magnets, for fabrication in the manufacturing, chemicals, and retail trade of raw magnets worldwide.
- Gross GP margin: 45% average, and it is growing 25% YoY; EBITDA is 30%, and the present year sales target is SGD 600k.
- Served 900+ clients (retail & institutional) and added 4 new accounts per month with 100+ active clients.
- Manufacturing capacity of 20-50 units/month and 6-7 active suppliers.
- From 15-85 Online B2C-Offline B2B split, aiming for a 45-55 Split in 3 years.
- Business generates around 20 invoices in a month.
- $0 customer acquisition cost & investing; an individual or company has access to the customer base to promote complementary products.
Products & Services Overview
* Singapore HQ, hybrid magnet supply business - offline division established 8 years ago, online division established about 3 years ago.
* Stable cash flow from the offline division, Inorganic scalable growth in the online division, built-in hedge: stable offline + high-growth online, very high-margin digital channel scaling.
* Customers ranging from engineering PMETs and various manufacturing companies, including electronics worldwide.
* Strong niche in fragmented magnet supply market.
* High barrier to entry.
* Clear expansion levers (WW, EMEA, ASEAN, B2B contracts, sourcing diversification)
Assets Overview
Tangible assets:
- Stock.
Intangible assets:
- Proprietary AM/FM Software: About SGD 500k.
- Brand name.
- Goodwill.
Intellectual capital for several unique products for.
1) the pre-cast concrete industry.
2) the oil & gas industry (patent in process of filing)
3) Oil drilling.
We have arguably the largest warehouse for magnets in Asia and are targeting to become a household name and preferred choice for the industry.
We have developed a totally breakthrough product for the O&G sector which is a potential regular business of several millions (currently in stealth mode due to the IP application process).
We are also in the fully unique space of integrating IoT in the higher-value magnet assembly products we design & produce.
We are well-known and active in the public domain with several visible profiles on social media. We are searchable on Google, Facebook, and Instagram, we are a visibly growing brand.
Facilities Overview
Currently renting a 3000 sqft unit in an industrial estate. The rent is SGD 4.2k per month. Located close to West Coast Highway.
Capitalization Overview
The business is fully bootstrapped currently with SGD 230k which is the owner's equity (paid-up) & around SGD 100k long-term debt (bank loan) being serviced through operations income. The owner is the sole shareholder, and currently the business runs from the operations cash flow. The owner is looking to gradually divest equity with a 5-year horizon after scaling the business to run on near autopilot.

Onboarded a branded angel investor 3 years ago on safe terms, looking to expand to additional Angels, Investment firms, and PE firms.
Recent Activity
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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