Listing ID: 77444
Do you want to work from home? “Half- time”? No inventory, no license, no employees? And earn over $225,000 a year with potential for a whole lot more?
This is an excellent web-based, at-home, no inventory, no-employee, one-owner-operated business that can be managed from anywhere.
With a select group of top- quality manufacturers, this kitchen cabinet distributor business sells elegant affordable custom all- wooden ready-to-assemble kitchen & vanity cabinetry delivered in days, serving the greater San Francisco bay metro area. One owner, no employees. 100 vacation days a year. SBA-approval pending. BBB A+ rating. Semi-absentee potential.
Annual sales ~$440,000K+, annual net/SDE ~$224K. Performance based on owner-operator working on average 15-20 hours per week, with frequent vacations. The asking price is $599,900; all reasonable offers will be considered. SBA-loan pre-approval in process. Some seller-financing may be available for a qualified buyer. For the Covid-19 period, April 2020-March 2021, sales didn’t miss a beat: gross revenue was $442,335, net income (SDE) was $224,296.
– Every-day, same-day great pricing on in-stock cabinets.
– Custom cabinets are delivered in about 2-7 days
– A limited selection of cabinets are shipped nationwide
– Customers shop online, by telephone, by email, or by fax
– Elaborate, extensive, state-of-the-art website with hundreds of graphic illustrations and detailed information to make online shopping simple and easy for the homeowner, the contractor, the designer, or the re-seller.
– Prompt professional service
– Over 16 years of great service and sterling reputation
– BBB rating of A+, with zero claims ever
– All-wood cabinets are delivered ‘ready-to-assemble’ (‘rta’) within 5-7 days: raised panel, painted, contemporary, traditional, arched- door
– Cabinets are all wood construction – no MDF
– Extension ball bearing slides on all drawers
– Soft close on all drawers and doors standard on most lines
– Dovetail drawers standard on all lines
– Highest quality standards
– Additional products include cabinet accessories, plumbing fixtures, range hoods, quartz & granite countertops, etc.
– Sales are about $450,000 per year with net/SDE of about $225,000, by one owner- operator, with no employees, and 100 vacation days every year! (owner works about 15- 20 hours per week, at most.)
– The business is operated out of a private, home-based, “by appointment only” showroom; but showroom visits are rare and mostly unnecessary.
– With a full-time owner-operator and ‘normal’ vacations, and a storefront ‘by appointment’ showroom, sales and profit could easily double (or more) in a year.
– Wholesale pricing and commission programs available to retailers, designers, and contractors.
– The business does no manufacturing, no assembly, no installation … no license or technical expertise required.
The transaction will be for the purchase of the entire business. The asking price is $599,900 (~2.7x SDE / 1.25x annual gross revenue), plus any then-current display inventory at cost. Seller will provide all necessary training and support for a seamless and easy transition. Some seller financing may be available for a qualified buyer with adequate collateral.
The transaction would include the transfer of all tangible and intangible business assets, including but not limited to all FF&E, customer database, vendor relationships, website(s), domain name(s), phone numbers, trade name(s), intellectual property, etc.; but, not including A/R, A/P, cash-on-hand, and business entity, with any inventory acquired at a to- be- negotiated cost-basis price.
Exclusive Broker: Tim Cunha, J.D. Cal. BRE# 01919755 650.600.3751.
Note: All data on this business are provided by the Seller for information purposes only and no representations are made by the Broker as to accuracy. The Broker has made NO independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.
- Asking Price: $599,900
- Cash Flow: $224,000
- Gross Revenue: $442,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- 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 company was established in 2004, making the business 18 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nevertheless, the true reason and the one they tell you may be 2 absolutely different things. As an example, they might say "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in incomes, or a range of other factors. This is why it is very essential that you not rely completely on a vendor's word, however instead, use the seller's solution together with your total due diligence. This will repaint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that profit margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract new consumers? Often times, companies have repeat customers, which form the core of their day-to-day profits. Particular aspects such as brand-new competition growing up around the location, roadway construction, as well as personnel turnover can affect repeat consumers and also negatively affect future profits. One important thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business often, the better the opportunity to construct a returning customer base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the local typical household income effect future earnings prospects?