Listing ID: 83634
Includes shop loaded with equipment and over $1M of work in progress. This firmly established business is highly profitable and well-suited for growth and expansion. The company has designed and built custom cabinetry and delivered kitchen and bath remodels for nearly 30 years.
This reputable operation services homeowners, architects, builders, contractors and design professionals and provides free estimates, competitive pricing, top quality craftsmanship, stellar customer service and on time professional installation.
Key features of the business:
• Solid sales pipeline with order commitments totaling $1.6M through May of 2022
• Four employees and four contractors
• 8,300 square foot office and warehouse space perfect for expansion
• Strong gross profit margin averaging 36 percent
• Fully-equipped shop with forklift, woodworking equipment and finishing equipment — ready to go
• All business is from customer referrals; business could be grown substantially with marketing investment
• Growth industry in a wealthy and fast-growing geographic region
• Seller who is willing to train and assist the buyer with a smooth transition
• Well suited for a contractor, woodcrafter or design professional
2021* — $1,928,428 *for 10 months ending 10/31/21
2020 — $1,694,425
2019 — $2,189,694
2018 — $1,861,897
ADJUSTED CASH FLOW
2021* — $594,757 *November 1, 2020 – October 31, 2021
2020 — $337,634
2019 — $377,391
2018 — $329,800
Ideally Suited for A Buyer Who:
• Has business experience and love woodworking and home improvements
• Has a kitchen/bath business outside the area and is looking to expand to the DC market
• Has another location in the Metropolitan Washington DC area and wishes to expand its presence
- Asking Price: $1,200,000
- Cash Flow: N/A
- Gross Revenue: $2,216,397
- EBITDA: $443,057
- FF&E: $194,459
- Inventory: N/A
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,300
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Owner will stay on to ensure a smooth transition.
Owner wishes to retire.
The venture was founded in 1995, making the business 27 years old.
The business has 8 employees and resides in a building with estimated square footage of 8,300 sq ft.
The property is leased by the business for $8,261 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. However, the genuine factor vs the one they tell you might be 2 entirely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of various other reasons. This is why it is very essential that you not count completely on a vendor's word, yet rather, use the seller's answer combined with your general due diligence. This will repaint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be met or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in brand-new consumers? Many times, companies have repeat customers, which develop the core of their day-to-day revenues. Specific factors such as brand-new competition growing up around the location, road building and construction, and also personnel turnover can impact repeat customers and negatively affect future revenues. One essential point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the higher the chance to build a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? How might the regional mean home earnings impact future income prospects?