Listing ID: 76668
Business Overview
Most highly recognized and regarded kitchen & bath design company in Colorado for over 40 years serving top tier luxury markets. Extensive referral customer base of homeowners, contractors, developers and interior designers ensure constant flow of projects. Management with talented teams of sales, design and installation experts in place in multiple showroom locations, including front range and high-end mountain markets. Longstanding relationships with premier cabinet, appliance and countertop suppliers of the highest quality. Company utilizes cloud-based software to support design, client presentation, construction drawings, order processing/tracking and project management. Current owner is absentee. Great opportunity for entrepreneur, private equity or family office looking for a creative, scalable business with a well-established brand. Consistent financial performance with increasing WIP and customer deposits supporting strong future growth.
Financial
- Asking Price: $4,000,000
- Cash Flow: $928,000
- Gross Revenue: $12,500,000
- EBITDA: N/A
- FF&E: $550,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1977
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:30
- Furniture, Fixtures and Equipment:N/A
Multiple showroom locations, including front range offices and warehouse, plus design centers in key mountain markets, linked with proprietary cloud-based design and operations software.
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.
Retirement due to health issues
This business is well-established in the market segments it serves, differentiated by the high level of customer service and highest quality of cabinets and appliances represented by the company, eliminating competition from big box outlets and independents serving lower-end commodity markets.
Systems are in place for this platform opportunity to add additional high-end market design teams/locations.
Additional Info
The venture was started in 1977, making the business 45 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the true factor vs the one they say to you may be 2 totally different things. For instance, they might state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or a range of other reasons. This is why it is really essential that you not rely totally on a vendor's word, yet instead, make use of the vendor's response together with your overall due diligence. This will paint a more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Many times, businesses have repeat consumers, which form the core of their everyday revenues. Particular factors such as brand-new competitors sprouting up around the location, road construction, and also employee turnover can influence repeat clients and also negatively affect future incomes. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the better the possibility to build a returning consumer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional average family earnings influence future earnings prospects?
