Manufacturing PE Investors: Create $12M In Revenue With Minimal Cashflow Impact
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How EBITDA improvement translates to enterprise value while adding the ability to adjust ROI and exit multiple within your guardrails.
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Guardrails reflect typical automation payback periods.
Guardrails align with common exit ranges for manufacturers.
Private equity firms are sitting on a hidden value creation opportunity in their manufacturing portfolio companies.
Traditional manufacturing struggles with thin margins. But smart automation financing changes everything.
Engineered Vision provides cutting-edge automation solutions that don't require massive upfront capital.
A $1,500,000 automation project financed off-books at eight percent over five years costs $375,000 annually.
Automation eliminates repetitive manual processes.
This specific installation saves $1,500,000 per year in labor costs.
That's a $1,500,000 EBITDA improvement - pure profit, net of all operating costs.
The automation pays for itself in 1.0 year while the loan payments are covered by the savings.
But here's the tax arbitrage that PE firms love.
As a C-Corp, the company deducts the full $1,500,000 in year one under bonus depreciation, creating immediate tax savings.
The tax benefit nearly covers the annual loan payment. It's essentially self-financing.
Now let's talk about exit value. Mid-market manufacturers typically trade at four to eight times EBITDA.
At a conservative four times multiple, that $1,500,000 EBITDA increase adds $6,000,000 in enterprise value.
At eight times? That's $12,000,000 in created value.
From a 1.0-year ROI to $6,000,000 to $12,000,000 in exit value. That's a 4 to 8 times return on invested capital.
This is leveraged value creation. Smart financing converts CapEx into EBITDA, while federal tax policy accelerates returns.
Engineered Vision specializes in automation projects that create measurable PE value. Let's talk about your portfolio.
Advantages Over the Current Market
- Much shorter sales cycles: 6 months vs 6-12 months.
- Acquisition capital and urgency: faster decisioning and growth focus.
Our Engagement Process
A proven roadmap from assessment to value realization
On-Site Assessment
We identify automation opportunities and prioritize projects by ROI potential. Comprehensive analysis of your manufacturing operations.
Proposals & Planning
Engineered Vision provides detailed proposals with clear ROI projections, financing options, and implementation timelines.
Execute & Deploy
Our team manages implementation from equipment procurement through installation, training, and commissioning.
Support & Optimize
Ongoing support to maintain and maximize OEE gains, with detailed reporting to document value creation for your portfolio.
Frequently Asked Questions
Common questions from PE investors
How quickly can we see ROI from automation investments?+
Most of our automation projects deliver positive cash flow within 12-18 months. The EBITDA improvement is immediate, while the full ROI depends on your financing structure. With 100% bonus depreciation, the tax benefits can accelerate payback significantly.
What if we're planning to exit within 2-3 years?+
Perfect timing. The EBITDA improvement starts immediately and directly increases your exit multiple. Even with a 2-3 year horizon, you'll capture significant value through higher enterprise valuation while demonstrating operational improvements that make your portfolio company more attractive to buyers.
How do you identify the highest ROI projects?+
Our on-site assessment evaluates labor costs, cycle times, quality issues, and throughput bottlenecks. We prioritize projects with the highest labor cost reduction relative to capital investment, typically targeting 12-24 month payback periods before considering tax benefits.
What financing options are available?+
We work with multiple financing partners offering equipment loans, operating leases, and sale-leaseback structures. Most manufacturers can secure 5-7 year terms at competitive rates (currently 7-9%). We'll help structure financing to minimize cash outlay while maximizing tax benefits.
How do you document value creation for our LPs?+
We provide comprehensive reporting including OEE metrics, labor cost reduction, production throughput increases, and quality improvements. Our reports clearly tie operational improvements to EBITDA enhancement and enterprise value creation, perfect for LP communications and exit materials.
What industries do you serve?+
We specialize in mid-market manufacturers across automotive, aerospace, medical devices, consumer goods, and industrial products. Our sweet spot is companies with $10M-$100M in revenue that have labor-intensive operations with clear automation opportunities.
Yes, I'm a PE Investor and I'm Interested
Schedule a confidential discussion during business hours about your portfolio companies