Listing ID: 83566
A leader in manufacturing beautiful high-end cabinetry, custom moldings, and architectural millwork the owner is ready to retire after 30 years in the business. The market niche is in new and remodeling of high-end homes that produce most of their business. This business serves the greater DMV region in custom millwork and have a great reputation. The company has long established relationships with builders, architects, general contractors, and individual clients.
This company prides themselves in high quality, reasonably price, and caring attitude toward service. This is a fantastic opportunity for someone interested in owning and operating a commercial millwork manufacturing business.
This business has a great name and well-established market presence. Their location is perfectly placed for the community they serve. There is opportunity to increase sales with marketing and expanding the product line to include other related products. The owner is willing to stay on and consult/assist with the new management team after the sale.
2019 Sales: $1,065,800.00 – experiencing approximately 30% year over year growth rate.
Monthly Lease Payment: $5100 NNN
Employees: 5 + 1 Contractor
Price includes inventory and FFE; value approximately $130,000
- Asking Price: $600,000
- Cash Flow: $137,870
- Gross Revenue: $1,065,800
- EBITDA: N/A
- FF&E: $71,000
- Inventory: $59,330
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The sale shall not include inventory valued at $59,330*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. However, the real reason vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or a variety of other factors. This is why it is very vital that you not count absolutely on a seller's word, but instead, make use of the vendor's solution together with your general due diligence. This will paint a more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that profit margins are too thin. Numerous companies come 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 think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new customers? Most times, businesses have repeat consumers, which develop the core of their day-to-day profits. Certain elements such as new competition sprouting up around the location, roadway construction, and also employee turnover can impact repeat consumers and also adversely affect future profits. One important thing to consider is the area 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 regularly, the higher the chance to develop a returning consumer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Just how might the local typical home earnings effect future income prospects?