Business Overview

This acquisition opportunity fabricates and installs custom residential and commercial cabinets (and some higher end custom office furniture) in the metro Atlanta market. The business has produced residential cabinetry since 1953 and after a strategic merger in 2008 they added commercial cabinets.
• The majority (approximately 80%) of revenue is generated from custom residential cabinet sales for new homes; the remaining 20% is custom commercial sales.
• Residential products are in the high mid-range housing market with orders filled for custom home builders and custom home contractors.
• The top three customers have been clients for 10+ years.
• There exists abundant opportunity to increase sales with an active marketing plan and/or outside sales representation. The business does not market products and has no website or sales person. The commercial market would be prime for expansion.
• The company is located in and serves the metro Atlanta and surrounding areas. The standalone business facility is leased at $2,000 per month and contains 27,000 square feet of space including two offices.
• The facility is not specific to the operation of the business and could be relocated.
The business is staffed with twelve full time and 1 part time employee including the owners and a foreman. The owners manage the day-to-day operations of the business as well as layout work and costing. The company has an employee that could manage the layout processes.

Financial

  • Asking Price: N/A
  • Cash Flow: $100,000
  • Gross Revenue: $915,000
  • EBITDA: N/A
  • FF&E: $70,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1953

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:13
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retire

Additional Info

The business was established in 1953, making the business 69 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 totally different things. For instance, they might state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be reasons to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is really crucial that you not rely entirely on a vendor's word, yet instead, make use of the vendor's solution together with your total due diligence. This will paint a much more reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover things such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that earnings margins are too tight. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in brand-new consumers? Most times, operating businesses have repeat clients, which develop the core of their daily earnings. Specific factors such as new competitors sprouting up around the location, roadway building, and staff turn over can affect repeat clients and also adversely affect future incomes. One important point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the higher the chance to construct a returning customer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? How might the neighborhood mean household earnings influence future earnings potential?