Situation:

Steel Parts Manufacturing, Inc. (SPM) is a manufacturer of components for automotive transmissions and other motion applications. The company manufactures precision components for transmissions in the automotive and heavy-duty markets, along with products for suspension systems, heavy-duty brake programs, and steering applications.

Headquartered in Tipton, Indiana, Steel Parts employs approximately 200 team members at its 180,000 square foot manufacturing facility.

Ameridan’s Role:

As part of its overall due-diligence process, a leading middle market private equity firm engaged Ameridan to perform market and customer diligence. Ameridan’s engagement focused on assessing: (1) changing automotive transmission designs/technologies and the effects on SPM; (2) key buying dynamics in the automotive industry and the implications for SPM going forward; (3) the stickiness of top customer relationships; and (4) sales outlook for major potential new accounts.