Listing ID: 83442
This business was founded in 1975 and has been in continuous operation since that time.
The company sells a wide range of building materials from well–known manufacturers including:
Doors, millwork and windows from Larson, Mathews Brothers, ThermaTru and Brosco.
Lumber products from Owens Corning, Georgia Pacific and Advantech.
Kitchen & bath products from Corian, Formica, Wilsonart, Pionite and Merrilat
Paint from California Paints
Roofing from Iko
Tools & hardware from Bostitch, Makita and Stanley
Marine products from Kellog Marine Supply
The company sells to retail consumers, contractors and local commercial mariners, offering free delivery and rapid order fulfillment for pickup.
* Confidential Listing, Located in Downeast Maine – Not located in indicated zip code*
- Asking Price: $585,000
- Cash Flow: $225,000
- Gross Revenue: $2,000,000
- EBITDA: $225,000
- FF&E: $80,000
- Inventory: $350,000
- Inventory Included: N/A
- Established: 1975
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Real Estate available for sale per appraisal.
Seller will assist with transition and may be willing to stay longer if desired.
No other lumber dealer in town. Nearest competitor is about 15 miles away.
This business may benefit from a field sales effort and an upgrade to the website, which currently does not feature e-commerce or web ordering.
The business was founded in 1975, making the business 47 years old.
The sale shall not include inventory valued at $350,000*, which ins't included in the requested price.
The company has 4FT, 2PT employees and resides in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the true factor and the one they tell you may be 2 completely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competitors, recent reduction in earnings, or an array of other reasons. This is why it is extremely vital that you not rely totally on a seller's word, however rather, make use of the vendor's solution together with your total due diligence. This will repaint a much more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover items like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that revenue margins are too tight. Lots of businesses 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 commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new clients? Many times, operating businesses have repeat clients, which develop the core of their everyday revenues. Specific elements such as brand-new competitors growing up around the location, roadway building, and employee turn over can influence repeat consumers and negatively impact future earnings. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning consumer base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? How might the neighborhood median family earnings effect future earnings potential?