Business Overview

This is a major metro woodworker that is set for the future. They have a key location, an automated shop and a team that is second to none for installation to support and service. They fabricate, paint, polish, and install custom woodwork. They focus on commercial space which includes offices, hospitals, hospitality and retail. They also do residential. They work with clients directly and with contractors who service their clients.SBA pre-approved. There were many upgrades to the business in 2020 and continued into 2021. The upgrades are and will continue to make the business more profitable.

Financial

  • Asking Price: $10,000,000
  • Cash Flow: N/A
  • Gross Revenue: $8,700,000
  • EBITDA: $1,200,000
  • FF&E: $600,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 1995

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:24,000
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Three floors and out building. Located in very convenient area within NYC to get anywhere in the city in minutes. All self contained with grandfather clause for location. Facility in great shape and ideally located. The business is fully automated and that is why there are only 25 employees including owner, office, shop and installers.

Is Support & Training Included:

Will stay on to professionally transition the business to new owner. The owners are very genuine. One owner will stay on longer than the other if needed or wanted.

Purpose For Selling:

Owners have worked hard to bring this business where it is today. Family needs.

Pros and Cons:

No one in the marketplace can compete as they do on price, timeliness and quality.

Opportunities and Growth:

They work 5 days a week. Can do a lot more using weekend days and longer hours. Multiple shifts.

Additional Info

The venture was established in 1995, making the business 27 years old.
The transaction will include inventory valued at $100,000, which is included in the listing price.

The business has 25 employees and is located in a building with estimated square footage of 24,000 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. Nevertheless, the genuine factor and the one they tell you might be 2 absolutely different things. As an example, they may claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, current reduction in earnings, or a variety of various other reasons. This is why it is extremely important that you not rely completely on a vendor's word, but instead, use the vendor's solution together with your general due diligence. This will paint a more realistic picture of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that revenue margins are too thin. Numerous businesses 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 think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in brand-new clients? Often times, businesses have repeat clients, which form the core of their daily revenues. Particular variables such as new competition growing up around the location, road building and construction, and staff turn over can affect repeat clients and also adversely influence future earnings. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the higher the opportunity to develop a returning consumer base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean house income effect future revenue potential?