Business Overview

Custom Closets and Storage Solutions – Design, Manufacturing and Installation, Price: $19,000,000

2021 EBITDA is over $3,000,000 with revenue approaching $16,000,000. Established Southeastern Company with two locations provides storage solutions for many applications (home, office, retail space, etc.) Company manufactures and designs closets, offices, garages, entertainment centers, mudrooms, pantries, laundry rooms, and free-standing wardrobe closets with custom Made in the USA high quality products. Seasoned management team in place. Team can implement growth initiatives and drive operational excellence toward continued profitability. Excellent opportunity for a new owner to capitalize on the increasing demand in the residential market for upscale storage systems. With industry-wide recognition for superior design, quality and service, the Company has sustained continued growth through a strong customer base.

Financial

  • Asking Price: $19,000,000
  • Cash Flow: N/A
  • Gross Revenue: $14,540,000
  • EBITDA: $3,102,000
  • FF&E: $1,521,000
  • Inventory: $670,300
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:33,500
  • Lot Size:N/A
  • Total Number of Employees:86
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

29,000 sq. ft. two story office, showroom and warehouse, plus 4,500 meeting space.

Is Support & Training Included:

Negotiable, working owner open to staying as part time consultant after the sale.

Purpose For Selling:

Retirement

Additional Info

The sale will include inventory valued at $670,300, which is included in the suggested price.

The company has 86 employees and is located in a building with approx. square footage of 33,500 sq ft.
The building is leased by the company for $18,500 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell operating businesses. Nevertheless, the true reason and the one they say to you might be 2 completely different things. For instance, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competition, recent reduction in incomes, or an array of various other reasons. This is why it is very vital that you not rely completely on a seller's word, however instead, use the seller's solution together with your total due diligence. This will repaint a much more practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that profit margins are too thin. Numerous businesses come 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 might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract new consumers? Often times, companies have repeat consumers, which create the core of their day-to-day revenues. Certain factors such as brand-new competitors growing up around the location, road building and construction, and personnel turn over can impact repeat customers and also adversely influence future earnings. One important point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the greater the chance to construct a returning customer base. A final thought is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Exactly how might the local typical family earnings influence future income prospects?