Business Overview

BUSINESS HIGHLIGHTS
The Company specializes in creating residential and commercial millwork packages of moldings, doors, stair parts, hardwood flooring, and many more wood products and hardware. the product mix includes doors (27% of sales), casing and base molding (20%), stair parts (13%), and other trims and finishing (36%).

The Company serves architectural design/build firms (36% of LHY revenue), lumber yards (40%), custom home builders (12%), cabinet dealers (4%), dealers (4%), and homeowners (4%). The Company operates out of its own 12,500 sq. ft. facility that can support growth.

COMPANY STATS
15 yrs of operations
Strong regional presence
12 full-time employees

GROWTH OPPORTUNITY
Hire additional employees
Develop sales & marketing
Geographic expansion

INVESTMENT APPEAL
Specialized Expertise – The Company is known for it’s expertise in producing complete trim packages, all with a cabinet grade finish – whether it’s matching existing mouldings, or creating a custom moulding – the trims are milled to exact specifications in whatever wood species and stain color the customer desires. These trim packages can include doors, stair parts, hardwood flooring, all stained to go with the trims, which can be job site delivered by the Company.

Annuitized Revenue Stream – The Company has a 92% rate of recurring customer revenue. Its lumber yard customers and other dealer markets order on a regular basis to support their inventory and sales projections; and the Company is sole-source, or primary source, for other contractor and architect firms.

Rising Gross Profits Trend – Gross margins expanded from 24% to 30% in 2019, and are expected to reach 32% or higher in 2021, due to recent equipment additions that reduce labor costs.

Recent Capacity/Infrastructure Upgrades – The Company added an automated spray line 2018 and an automated optimizing ripsaw in 2019, adding significant capacity and efficiency to the Company’s already streamlined production process.

Financial

  • Asking Price: N/A
  • Cash Flow: N/A
  • Gross Revenue: $2,000,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2006

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:12
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Opportunities and Growth:

Hire additional employees Develop sales & marketing Geographic expansion

Additional Info

The venture was founded in 2006, making the business 16 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 entirely different things. As an example, they might state "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to try to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or a variety of other reasons. This is why it is extremely vital that you not rely completely on a seller's word, however instead, utilize the seller's response in conjunction with your general due diligence. This will paint an extra realistic image of the business's present scenario.

Existing Debts and Future Obligations

If the current entity 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 finance loans with the purpose of covering items such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that earnings margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Particular aspects such as brand-new competition sprouting up around the location, road building, and staff turnover can impact repeat clients and also negatively affect future earnings. One crucial point to think about 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 on a regular basis, the greater the possibility to build a returning client base. A final idea is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local average house earnings effect future earnings prospects?