Business Overview

From concept to installation this business specializes in custom wood cabinets, shelving, trim work and more for commercial and residential customers. Office, multi-family, single-family, restaurant, beauty salons, universities, hotels and more. This is a great bolt-on business for a kitchen and bath designer, architect, or other business that would like their own millworking shop, or a competitor that wants to grow through acquisition. Owner willing to stay on for a year or two in a limited capacity sales position.
The owner has been making cabinets and fixtures since 1987. He opened this business in 2010 and bought his partner out a year later.
Customers include large-scale developers and builders. Customers bring this firm in at concept stage.

Financial

  • Asking Price: $273,000
  • Cash Flow: $135,745
  • Gross Revenue: $655,232
  • EBITDA: N/A
  • FF&E: $81,387
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2010

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:5
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The business was established in 2010, making the business 12 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. However, the real reason vs the one they tell you might be 2 totally different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a variety of other reasons. This is why it is very essential that you not rely entirely on a seller's word, but instead, make use of the vendor's answer along with your total due diligence. This will paint a much more practical image of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover items such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that revenue margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back 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 may have existing agreements with suppliers that need to be satisfied or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new consumers? Most times, companies have repeat customers, which form the core of their day-to-day profits. Specific factors such as brand-new competition growing up around the location, roadway building and construction, and also staff turnover can impact repeat consumers as well as adversely affect future revenues. One vital point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the higher the chance to develop a returning customer base. A final thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Just how might the regional mean house income impact future revenue prospects?