Business Overview

For 33 years, this business has provided the Central New York region with the highest quality custom and pre-made counter tops and cabinets while maintaining reliable, knowledgeable and friendly service. The business has an excellent reputation and has generated outstanding financial results, including seven years of increasing revenue and cash flow.

Financial

  • Asking Price: $1,400,000
  • Cash Flow: $736,963
  • Gross Revenue: $1,512,000
  • EBITDA: $634,502
  • FF&E: $381,700
  • Inventory: $7,500
  • Inventory Included: N/A
  • Established: 1988

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:10,000
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The seller owns the building in which the showroom and fabrication space is located, with 10,000 square feet total.

Is Support & Training Included:

The seller is willing to train the new owner and also could stay on in some capacity that makes sense to both parties.

Purpose For Selling:

The seller would like to attend to family matters.

Pros and Cons:

Big name hardware stores but they cannot match quality and installation services.

Opportunities and Growth:

Growth continues and the company can take on more business, but the local labor market is somewhat tight.

Additional Info

The company was founded in 1988, making the business 34 years old.
The transaction doesn't include inventory valued at $7,500*, which ins't included in the requested price.

The business has 5 employees and is situated in a building with disclosed square footage of 10,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. Nonetheless, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other factors. This is why it is extremely essential that you not rely absolutely on a vendor's word, however rather, utilize the seller's answer along with your total due diligence. This will repaint a much more reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover points such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that revenue margins are too tight. Numerous organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract brand-new clients? Many times, companies have repeat consumers, which form the core of their day-to-day revenues. Specific aspects such as new competition growing up around the area, road construction, as well as staff turnover can affect repeat customers and adversely influence future profits. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average family income effect future earnings prospects?