Business Overview

***IN ESCROW*** This highly profitable kitchen design studio is located in a prime area of Los Angeles. The business has an exclusive Los Angeles County dealership agreement with a highly respected, high-end custom kitchen manufacturer which will be transfer to a qualified buyer. The manufacture is well known as a premier designer and manufacturer of high-quality kitchens throughout the world and has been highlighted in Architectural Digest. The showroom for this business offers an extensive selection of high-end kitchen cabinetry and provides design and installation services. In addition to kitchen design, this business offers closet systems, bathroom vanities, entertainment centers and appliance solutions.

Majority of customers are high net worth individuals referred by their contractor/designer/architect or past clients. Average cost of a project is $130,000+/- and this company has done projects north of $500K on individual homes. The gross revenue and profitability in 2020 was exceptional and higher than previous years even with Covid and a reduced production schedule. The pipeline in 2021 is strong with several projects underway and scheduled for throughout the year. The business will benefit from the continuing trend of people remodeling their existing homes. As per several reports, large remodel projects like kitchens will continue to be strong going forward as more and more people use equity in their home or savings for large upgrade projects.

Seller is retiring after many years in the business. Seller runs this business by himself on a “relaxed” Monday – Friday schedule with one designer and a couple seasoned third party installers. The purchase price consists of a large list of FF&E and includes several high-end displays worth hundreds of thousands of dollars. Seller is willing to consider seller finance for a qualified buyer with good credit and a significant down payment. This business has also been prequalified for a SBA loan for a buyer with good credit and direct industry experience.

Prospective buyer should have experience in dealing with high-end products/furnishings and with high-net-worth clientele. Call Broker for further details on this unique opportunity to own a highly respected kitchen design studio in Los Angeles that is priced exceptionally well.

Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button or the Contact Seller button or email info@certifiedbizbroker.com to receive a confidentiality agreement and learn more about this opportunity.

Financial

  • Asking Price: $1,500,000
  • Cash Flow: $700,000
  • Gross Revenue: $2,000,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $400,000
  • Inventory Included: Yes
  • Established: 1989

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:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Located in the design area of Los Angeles

Additional Info

The company was founded in 1989, making the business 33 years old.
The transaction will include inventory valued at $400,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell businesses. However, the true factor vs the one they tell you may be 2 completely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competition, current decrease in earnings, or a variety of other reasons. This is why it is very vital that you not depend totally on a seller's word, but instead, use the seller's answer in conjunction with your total due diligence. This will paint a much more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover things like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that profit margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in new customers? Often times, businesses have repeat consumers, which form the core of their day-to-day earnings. Particular aspects such as brand-new competition sprouting up around the location, roadway construction, and also employee turnover can influence repeat clients as well as adversely influence future earnings. One crucial point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the possibility to build a returning client base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? How might the local mean house earnings effect future earnings potential?