Listing ID: 74953
This Company is an Arizona licensed contractor providing complete residential and commercial cabinet re-facing services to Southern, Arizona and the surrounding areas including Green Valley, Marana, and Vail. The Company has been operating since 2005.
Refacing cabinets is an excellent and affordable alternative to the high cost of buying new cabinets with the long wait times and kitchen downtime for prep and installations.
The Company handles primarily customers who own single family residences that need upgrading or remodeling.The perfect candidates for the services offered by the Company are either longtime homeowners who are ready to upgrade their large kitchens or new homeowners.
The Company has had over 560 projects completed which, along with excellent local branding, provides a pipeline of new customers as a result of referral calls from satisfied customers.
The owners have operated the business since its inception in Arizona. Their quality work has been the bedrock of preserving the integrity of the brand and providing consistent products and services through the years. After decades of successful operations they are ready to pass this business onto the next entrepreneur. A new owner will benefit from years of attentive ownership.
The Company is currently home-based. A new owner can continue to provide services and operate out of their own home or can obtain a new location to lease.
The current operator is working part-time as he is ready to retire.
A candidate for the acquisition may come from one of two distinct areas.
……..A strategic purchaser in the same industry. This is an opportunity for the acquiring company to increase their exposure to customers in Southern Arizona, while gaining or augmenting an established footprint in the area and creating additional efficiencies.
…….An operational purchaser with the skill sets necessary to participate in the day-to-day operation, while also continuing to grow the business.
NOTE: The financials in this advertisement are based on the 2021 figures and a new owner continuing to operate in the same fashion from their own home base.
In 2021 the owner increased pricing which has directly impacted the earnings positively without losing customers.
Qualified buyers & their agents must sign a Confidential Non- Disclosure Agreement prior to receiving detailed financial information.
Call Dana Cole today for more information on this OPPORTUNITY
- Asking Price: $155,000
- Cash Flow: $124,110
- Gross Revenue: $270,928
- EBITDA: $73,222
- FF&E: $19,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business is currently operated out of the owner’s residence utilizing approximately 700 square feet. A new owner has the option of continuing to operate in the same fashion from their own home base or finding a location in a mixed-use commercial area and adding visibility and signage. (Home Based)
Dependent upon the skills and requirements of the new owner, the training and support provided by the seller is negotiable.
In Southern Arizona there are some competitors. This Company has established a long term relationship with its product distributor as well as having a stellar on-line reputation for attentive and personal customer service. This has led to organic growth through referrals. The Company has benefited from their quality printed materials provided by the distributor.
Area growth and development are positive factors for continued revenue growth. Long established local reputation lends credibility to the owners'’' ability to secure new projects. New ownership and or strategic purchaser may provide fresh ideas and efficiencies to the existing business that current ownership does not employ. An entrepreneurial operator/owner may choose to take advantage of the branding and success of the business in Southern Arizona and add staff and service hours.
This Business Is Home Based
The business was started in 2005, making the business 17 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nevertheless, the real reason vs the one they tell you may be 2 totally different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in revenues, or an array of other factors. This is why it is very crucial that you not rely completely on a seller's word, yet rather, utilize the vendor's response along with your general due diligence. This will paint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover items such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too small. Lots of organisations come under a revolving door of taking on debt as a way to pay back various 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 agreements with vendors that should be satisfied or might result in charges if terminated 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 customers, which develop the core of their day-to-day profits. Specific variables such as brand-new competitors growing up around the area, roadway building and construction, and staff turn over can impact repeat consumers and also negatively impact future earnings. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the greater the chance to develop a returning customer base. A last idea is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional median household earnings influence future earnings prospects?