SIGN THE NDA BY COPYING & PASTING THE LINK BELOW:

https://na2.docusign.net/Member/PowerFormSigning.aspx?PowerFormId=9678369d-7d0b-45f1-bf83-ac45a8ec77ec&env=na2&acct=d939ab29-2ec8-4b5f-9c5a-bc46663ab42b&v=2

ALL LOIs DUE BY APRIL 7, 2025

OVERVIEW:

The Company is a well-established leader in the commercial marine industry. Founded in 1975 and acquired by its current owners in 2002, it specializes in the sale, service, and support of commercial marine engines, generators, and related equipment. With five decades of experience, the Company has built a strong reputation for reliability and expertise, serving a diverse customer base across the West Coast, Alaska, Hawaii, and beyond.

KEY STRENGTHS:

• Market Leadership: The Company commands an impressive 70% local market share in the industry.
• Extensive Customer Base: The Company serves commercial fishing vessels, tugboats, and industrial clients, with 65% of revenue stemming from the fishing/processing sector.
• Exclusive Partnerships: Authorized dealership relationships with Cummins, John Deere, Isuzu, and Northern Lights provide access to high-quality products and tools that set the Company apart from competitors.
• Strategic Location: Based in Toledo, Oregon, the Company is optimally positioned to serve key maritime markets along the Pacific Coast and beyond.
• Skilled Workforce: A team of 10 employees, including experienced journeyman technicians and dedicated office staff, ensures seamless operations.

COMPETATIVE ADVANTAGES:

• Decades-long customer relationships built on trust and exceptional service.
• A willingness to travel to meet customer needs, providing unmatched flexibility.
• Local dominance with no direct competitors in the immediate region.

GROWTH POTENTIAL:

The Company has demonstrated consistent growth since its acquisition in 2002. Moving forward, the company is positioned to expand further by:
1. Hiring additional technicians to meet increasing demand.
2. Leveraging word-of-mouth marketing to strengthen its reputation and attract new clients.
3. Capitalizing on macroeconomic trends such as rising global seafood demand to drive business growth.
4. Expansion into the truck, bus, and other industrial markets.

FINANCIAL HIGHLIGHTS:

• Three-year average revenue of $6.93m and adjusted EBITDA of $632k.
• Revenue Distribution: Commercial fishing/processing (65%), tugboats (25%), industrial (10%).
• Strong gross margins: Engine/equipment sales (15%), parts sales (35%), service events (40%).
• No current working capital or capital expenditure needs.

REAL ESTATE:

The Company operates from a 10,000 square foot facility leased from a related party. The lease term is flexible. The facility can support substantial growth for the foreseeable future.

TRANSITION:

The ownership team is committed to ensuring the successful transition and continued success of the Company. While some shareholders plan for retirement, others are willing to remain actively involved for an extended period to support the business's growth and transition.

CONCLUSION:

The Company is a highly reputable business with a dominant market position, loyal customers, and significant growth opportunities. Its strong operational foundation and strategic partnerships make it an attractive choice for potential buyers or partners seeking entry into the thriving commercial marine industry.