Details - Information last confirmed on May 22, 2021
This is a 37 year-old Company with seasoned staff and extremely loyal clients that is ready for new ownership. The two current owners are retiring but want their clients and employees to continue to prosper. While the business is priced to move quickly, the Sellers are willing to wait for the right Buyer and will provide adequate training and support.
The Company does not market or advertise – they have always enjoyed repeat, loyal clientele that appreciate their stellar performance. They do not have a website or marketing collateral - reputation and relationships drive this business. With nearly 75% negotiated work with respected commercial general contractors, the Company enjoys $1.5M of annual gross revenue fabricating high-quality cabinets, casework, and architectural millwork for medical facilities, schools, and office buildings. Most of the jobs take place in new construction projects that are larger than 30,000 square feet, and the average contract value is $250,000.
In recent years, the Company has been selective in securing new business to maintain a predictable and stable revenue stream in preparation for the owners' retirement. The backlog of contracted jobs will sustain the Company for many months, and a high- probability pipeline of opportunity will carry this business beyond 2022. Their long-term and trusted clients have substantially more work to award to the Company should growth be desired.
Currently, the two owners share responsibilities to procure and manage the projects. A qualified team backs them with seasoned draftsmen, engineers, and shop staff to complete the fabrication and assembly process. The Company uses subcontractors for the installation of its products. Bringing this service in-house would create a secondary source of revenue and would improve profitability.
Owning this established and financially stable Company is an excellent opportunity for someone with commercial construction expertise, project management skills, business development, and estimating experience. The Company would make a good bolt-on product for a business that already delivers similar products or services to commercial general contractors. For architectural millwork companies operating outside of the region, this acquisition would be a steadfast point of entry into the robust Front Range market. The owners will provide a few months of full-time training and will be available afterward on a part-time, consulting basis.
The Company's revenues have been steady for the last three years with no economic impact from the COVID-19 pandemic. The average gross revenues are $1.5M with more than 10% seller discretionary earnings (SDE). The Sellers will share confidential financial information upon receipt and acceptance of a signed non-disclosure agreement.
At 15,000 square feet, the facility is larger than needed for the Company's current volume. Expanding the workspace could increase production capacity exponentially. The Sellers own the building, which can be purchase for $2.6M. Buyers can use an SBA loan to purchase the building, which can be sub-divided to lease to another tenant while growing the architectural millwork operation. The Sellers are also willing to lease the building on a month-by-month basis until it sells, should the Buyer desire to relocate the operations. Most of the Company's staff lives in the area, so moving out of the area could negatively impact the retention rate.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.