Listing ID: 75086
This 11-year-old business has developed an impressive reputation in its market for manufacturing high quality commercial cabinetry along with timely production, delivery, and installation to meet its customers’ critical deadlines. The Company’s services include the design, production, delivery, and installation of plastic laminate millwork. The Company has a well-equipped manufacturing operation utilizing modern, precision equipment to achieve manufacturing efficiencies and, along with its adherence to Architectural Woodwork Standards, ensures the Company maintains high quality standards.
While servicing the overall commercial tenant improvement market, the Company has developed substantial expertise and a reputation for excellence within a specific, large segment of the market that has specialized requirements. This expertise and experience provide the Company with a significant competitive advantage for projects within that large and growing market segment as well as for less demanding applications. The Company also works on new commercial construction projects.
The Company primarily services the Phoenix Metropolitan Area, one of the fastest growing regions in the country. Demand for the Company’s products and services are growing with the overall market as well as with tenant moves and facility upgrades.
The Company has long-standing relationships with its customers generating repeat business as new projects are undertaken. New customer relationships result from the Company’s high customer satisfaction levels and resulting reputation in the market as well as from frequent referrals by its existing clients.
With a well-trained base of employees, up to date manufacturing equipment and facility, and an established customer base in a growing market, this business represents an exceptional acquisition opportunity.
Facilities: Over 15,000 square feet of industrial manufacturing space, including approximately 2,000 sq. ft of office space, ideally located in the Phoenix Metro. The property is available for purchase for $2.45 million.
- Asking Price: $1,999,000
- Cash Flow: $463,358
- Gross Revenue: $1,800,923
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The Seller will provide four weeks of training and transition support included in the purchase price. Support beyond that time may be available for additional consideration.
The business was founded in 2011, making the business 11 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell operating businesses. Nonetheless, the real factor vs the one they tell you might be 2 absolutely different things. For instance, they might claim "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is very important that you not rely entirely on a vendor's word, but instead, utilize the seller's solution along with your general due diligence. This will paint a more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover points such as inventory, payroll, accounts payable, etc. Remember that in some cases this can mean that earnings margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. 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 satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new customers? Most times, businesses have repeat clients, which create the core of their everyday earnings. Specific elements such as brand-new competition sprouting up around the area, roadway construction, and also staff turnover can affect repeat customers and negatively affect future incomes. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the higher the chance to construct a returning client base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional mean house income effect future earnings prospects?