Listing ID: 83859
Custom cabinet shop for sale. Modern equipment and capable of current and
future capacity. Turnkey business has been operating for 30+ years. Website is included in sale and provide a good marketing tool for new business. Also service builders for new construction. Owner is retiring and that is what makes this great opportunity available.
- Asking Price: $575,000
- Cash Flow: N/A
- Gross Revenue: $1,500,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1990
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:6,000
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Fully equipped custom cabinet shop. Modern equipment and capable of handling production now and in the future. There is a showroom and offices as well.
Owner will work as consultant for a time period.
Owner is retiring.
Market is very strong at this time. There are a lot of home improvement sales from the website. The builders accounts are also busy. This shop does a high percentage of public customer work. These come from website and referrals.
There is plenty of capacity to handle more growth.
The venture was founded in 1990, making the business 32 years old.
The business has 10 employees and is located in a building with disclosed square footage of 6,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of various other factors. This is why it is very important that you not count entirely on a seller's word, yet instead, make use of the vendor's solution together with your total due diligence. This will repaint an extra practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies take out loans in order to cover items like stock, payroll, accounts payable, and so on. Remember that occasionally this can indicate that earnings margins are too thin. Numerous companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in brand-new customers? Most times, businesses have repeat consumers, which form the core of their daily earnings. Specific factors such as new competition growing up around the location, roadway construction, and also employee turnover can impact repeat consumers and negatively impact future profits. One important point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the chance to construct a returning client base. A final idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood median family income effect future income potential?