Business Overview

The Company specializes in selling building materials. . The Company is a one-stop-shop for home builders, offering all types of the supplies from lumber to roofing, windows, paint, and hardware. The Company primarily serves construction contractors (67% of 2019 revenue) as well as homeowners (28%) and walk-in customers (5%) mainly in its local market (65% of revenue) as well as beyond (32% within a 50-mile radius and 3% beyond a 50-mile radius).

The Company operates out of a 3,000 square foot shareholder-owned facility.

17 yrs of operations
Superior reputation
4 full-time employees

Hire additional employees
Develop sales & marketing
Geographic expansion

Strong Client Relationships – The Company has many longstanding client relationships and a high rate of repeat and referral business. TheCompany’s top four customers in 2019 have all been doing businesswith VLC since 2004.

Strong Net Working Capital – The Company’s current and quick ratioswere 8.6 and 2.7, respectively, at December 31, 2019. Ratios above1.0 generally indicate strength in a company’s ability to meet short- term obligations .

COVID-Resistant – Through the first nine months ended September 30, 2020, revenue reached over $1,184,000, with cash flow above 10%of revenues. This solidifies the Company’s conservative year-end base year revenue of $1.6 million, and cash flow of $162,000.

Projected Industry Performance – The value of US new residential home construction and renovations, an indicator for home centers and hardware stores, is forecast to grow at an annual compounded rate of 5% between 2020 and 2024.


  • Asking Price: N/A
  • Cash Flow: N/A
  • Gross Revenue: $1,700,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2004

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:4
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:


Opportunities and Growth:

Hire additional employees Develop sales & marketing Geographic expansion

Additional Info

The venture was started 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 businesses. However, the genuine factor and the one they tell you might be 2 entirely different things. For instance, they may claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or an array of various other reasons. This is why it is really vital that you not depend entirely on a vendor's word, but rather, use the vendor's answer in conjunction with your overall due diligence. This will repaint a much more practical image of the business's present situation.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that earnings margins are too small. Lots of businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area attract new clients? Most times, businesses have repeat customers, which create the core of their daily revenues. Particular aspects such as brand-new competitors sprouting up around the location, roadway building and construction, and staff turn over can influence repeat consumers and also negatively affect future incomes. One important point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the greater the opportunity to build a returning client base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Just how might the regional median family income impact future income prospects?