TestEquity

TestEquity distributes new and used test-and-measurement equipment — oscilloscopes, spectrum analyzers, multimeters, power supplies — from major manufacturers including Keysight, Tektronix, and Fluke. Through acquisitions of GFS Manufacturing and KASKO, the firm also manufactures proprietary products such as sheet metal enclosures and environmental test chambers. End customers include aerospace and defense contractors, US national laboratories, electronics manufacturers, and university engineering departments.

The thesis combines distribution margin with manufacturing margin. By owning both the channel to market and a portion of the products sold through that channel, the platform captures margin at two points and builds switching costs with customers who value single-vendor sourcing for test equipment, enclosures, and chambers. The strategy also provides a natural pipeline for add-on acquisitions — small manufacturers gain access to an established distribution network upon acquisition, creating a recurring deal-flow engine at attractive entry multiples.