Listing ID: 82580

Business Overview

This Company is a very well-established custom cabinet and door manufacturer offering a complete custom shop experience from design, to build, to finished installation. Additionally, the Company designs and manufactures furniture and mill work products, as well as specialty spaces for affluent enthusiasts; fly fishing rooms, saloons, wine cellars, theaters, and more have been finished with spectacular results. Longstanding relationships have been fostered with complimentary artisans, such as blacksmiths, steel fabricators, glass artists, and the like, ensuring the Company is able to deliver the type of unique and one-of-a-kind offerings that upscale clients desire. Operating exclusively within the luxury market, the Company is sought out by the most discerning clients throughout the Rocky Mountain Northwest, but has also completed projects in Canada, Mexico, and South Korea. The Company is located in an area with a highly desirable quality of life and is experiencing booming market conditions with no end in sight. Growth opportunities abound, as there is currently more work available than current capacity can handle; it is estimated that custom cabinet production could be expanded by 40% and door production by 200%. The Company employs a highly trained and experienced workforce, notably skilled at fine woodworking, and with an average tenure of over eight years. The Company’s sterling reputation, enviable market position, skilled workforce, and opportunities for further growth make this an acquisition prospect that merits further investigation.

INVESTMENT HIGHLIGHTS:
–> Long-standing reputation for very high-end, high-quality products & services
–> Located in a very attractive area to live, work, and play
–> Currently experiencing very strong trends with booming market conditions
–> Highly trained and experienced workforce, exceptionally skilled at woodworking
–> High-end customers that result in recession resistance
GROWTH OPPORTUNITIES:
–> Add on a cabinet hardware supply business with online and catalog offerings
–> Establish a relationship with a standard cabinet product line provider to capture the lower-end market
–> Embark on focused workforce expansion recruiting effort to increase capacity

Financial

  • Asking Price: $2,000,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: $760,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell companies. Nonetheless, the true reason and the one they tell you may be 2 completely different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or an array of other reasons. This is why it is very important that you not depend totally on a vendor's word, but rather, utilize the vendor's response together with your general due diligence. This will paint a more reasonable picture of the business's existing scenario.

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 deal. Lots of companies take out loans so as to cover points like inventory, payroll, accounts payable, etc. Keep 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 loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be satisfied or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in brand-new clients? Often times, operating businesses have repeat customers, which create the core of their daily revenues. Specific aspects such as new competition sprouting up around the area, road construction, as well as personnel turnover can impact repeat consumers and adversely affect future profits. One essential thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning client base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? How might the neighborhood median family income impact future revenue potential?