Listing ID: 76608
Located in beautiful Western Colorado for over 23 years, this company crafts award winning custom cabinetry and counter tops for any location in the home, office, or commercial setting. Western Colorado is a burgeoning market for new home construction and remodeling, with individuals and families relocating to the less stressful and more affordable lifestyle this setting has to offer.
From custom design to professional installation, this company produces top quality finished products, while capturing nearly 30% of the cabinet design and installation business in the area. Benefiting from over 70 years combined experience, the owners thoughtfully guide clients through the selection and installation of beautifully designed cabinetry. Additionally, this company offers counter surface solutions with the same enthusiasm and professional attention to detail.
This Cabinet Company has developed a strong relationship with top residential builders in the area. These robust builders increased business volume by nearly 20 design projects in 2021. Many others have added additional projects. Overall, generous revenue gains have been realized with more to come.
Unparalleled customer service is the hallmark of this company’s reputation.
- Asking Price: $695,000
- Cash Flow: $415,000
- Gross Revenue: $1,268,806
- EBITDA: $336,000
- FF&E: $71,800
- Inventory: $20,000
- Inventory Included: Yes
- Established: 1996
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,132
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Located on a four-lot parcel of land, the business occupies 2376 sq ft of showroom and office space in a 3132 sq ft building The building comes with an additional 736 sq ft residential rental home. Two separate out buildings on the property provide spare storage solutions for the business.
At the close of escrow, the sellers will happily stay with new owners for sufficient time to provide training for a smooth transition into this lucrative Business.
Radio advertising, the company website, and social marketing consistently bring in new business, contributing to the Business's gaining close to thirty percent of the cabinet design and installation business in the area. As a locally owned, family run company, customer referrals are also a strong source of new and repeat business.
Western Colorado is a burgeoning market for new home construction and remodeling, with individuals and families relocating to the less stressful and more affordable lifestyle this setting has to offer. Along with the business's excellent reputation, additional advertising, a larger social media presence, and enhanced website management would substantially increase revenue.
The company was established in 1996, making the business 26 years old.
The deal will include inventory valued at $20,000, which is included in the asking price.
The business has 6 employees and resides in a building with disclosed square footage of 3,132 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. However, the genuine reason vs the one they say to you may be 2 completely different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be excuses to attempt to hide the reality of transforming demographics, increased competition, current reduction in earnings, or a variety of other reasons. This is why it is very crucial that you not depend absolutely on a vendor's word, but instead, make use of the vendor's response in conjunction with your general due diligence. This will paint an extra sensible picture of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that earnings margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new consumers? Often times, companies have repeat clients, which develop the core of their daily earnings. Particular variables such as brand-new competitors growing up around the location, roadway building, and also staff turn over can influence repeat clients and also negatively influence future incomes. One vital point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning client base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood average house income influence future revenue prospects?