Listing ID: 79005
Craftsmanship and the bridging of old and new is what sets this specialty wood manufacturing business apart. With a mix of 19th and 20th century woodworking equipment combined with 21st century technology, the craftsmen produce products for repair and replacement on historic buildings as well as create the historic feel in new construction. The current ownership has been operating from this historic mill for almost 40 years of the over 170 year history of this mill.
Located in a North Central NH, the business designs, manufactures and installs wooden architectural components for custom applications mainly sold and installed in the eastern half of the US. The main point of contact for many projects are architects and contractors as well as direct contact with buyers. This well-established business will be an ideal situation for a buyer or partners who like working with high quality woodcraft for use in high value real estate. The business and real estate are being offered at $380,000 plus the value of the inventory. The value of the inventory varies and will depend on the timing of the sale. The manager is available for a reasonable transition period with additional assistance being negotiable.
- Asking Price: $380,000
- Cash Flow: $131,662
- Gross Revenue: $449,966
- EBITDA: N/A
- FF&E: $193,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Support and training during the transition are available.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 entirely different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in earnings, or an array of various other reasons. This is why it is really essential that you not rely absolutely on a vendor's word, however instead, use the seller's answer together with your general due diligence. This will repaint a more reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that revenue margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might 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 fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new customers? Often times, companies have repeat customers, which form the core of their day-to-day earnings. Certain elements such as new competition growing up around the area, roadway construction, as well as employee turn over can impact repeat clients and negatively affect future incomes. One vital point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the higher the opportunity to construct a returning customer base. A final idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the local median family earnings impact future income potential?