Listing ID: 80581
Business Overview
This extremely successful and reputable business has been providing its customers with custom-crafted natural and engineered stone work for over 30 years! It has earned a great reputation over the decades for their high-quality work, excellent service and very qualified employees. As complete stone and tile contractors, they can custom plan, fabricate and install just about any intricate project to exacting specifications ensuring their customer’s complete satisfaction. In addition to counter tops for kitchens and baths, some of the 1000+ completed projects include: full slab shower surrounds, stove hoods, bar tops, pool decks/surrounds, water features, fireplaces, custom cabinets and more. If it has anything to do with natural or engineered stone and their client can dream it, they can create it!
Financial
- Asking Price: $275,000
- Cash Flow: $186,000
- Gross Revenue: $520,000
- EBITDA: N/A
- FF&E: $90,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1987
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,100
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The companies 5,000+ sq.ft. base yard is strategically located in the center of Maui providing easy access to every part of the Island, with a long term lease available at similar terms. An extensive 3 page Asset List is available by request and includes everything one would need to continue day-to-day operations. The shop is equipped with state-of-the art machinery allowing them to produce the products that have built their reputation. Some key assets include: Sierra Diamond Gantry Bridge Saw (tilts and rotates), grinders, sanders, polishers, compressors, newer 1 Ton Chevy flatbed stake-side truck, 10,000# forklift, air conditioned office (6'x12') and so much more...truly turn-key!
At the Buyers discretion, the Seller is willing to remain in a project management/RME role for an extended period of time to facilitate the transition. 30 days of complete training included, up to 1 year negotiable.
retirement
There are other businesses that do similar work however this business is well known for the high quality of work that it completes which sets it apart from its competition. Additionally, most providers of stone products outsource a major portion of the fabrication and installation, this business does it all itself which gives it a true competitive advantage.
The business has a long history of stability, managed growth and profitability. As a result, there is a reliable track record of strong cash flows. It currently has more demand for its services than they are able to meet which leaves a new owner significant opportunities for growth. Current revenue stream has been generated entirely from referrals, repeat clients and word of mouth...less than 1/2 of 1% of annual revenues spent on advertising. Additional growth can be expected by hiring additional staff to complete more waiting projects. (Not to mention becoming active in a social media campaign and attracting even more clients).
Additional Info
The company was founded in 1987, making the business 35 years old.
The transaction does include inventory valued at $5,000, which is included in the suggested price.
The business has 3+ employees and resides in a building with approx. square footage of 5,100 sq ft.
The real estate is leased by the business for $1,340 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 completely different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or an array of other factors. This is why it is very crucial that you not depend entirely on a seller's word, yet rather, make use of the seller's response along with your overall due diligence. This will repaint a more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that revenue margins are too small. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new clients? Many times, operating businesses have repeat clients, which develop the core of their everyday profits. Certain elements such as brand-new competitors growing up around the location, road construction, as well as employee turn over can influence repeat customers and adversely affect future profits. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the better the opportunity to develop a returning customer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Exactly how might the regional median household earnings effect future earnings potential?
