MergerPlace

Suburban Custom Cabinet Manufacturer

Minnesota


  • Asking Price: $1,500,000
  • Gross Income: $1,186,137
  • Cash Flow: $158,411
  • Real Estate: $675,000
  • Inventory: $20,317
  • FF&E: $335,075
  • Listing ID: #207836
  • Established: 1980
  • Employees: 8 FT

Business Description

For over 40 years, this successful custom cabinet business located in a Twin Cities suburb has been creating quality cabinetry for the home. A bank has proposed financing the acquisition of this business and the real estate to a qualified buyer. Their cabinets are made for kitchens, baths, home offices, fireplaces & entertainment centers, bars, mudroom & laundries, hutches & furniture and built-in storage. Their process starts with understanding the customer's needs, creating the design that fills that need, drafting the cabinets and the design layout, constructing the cabinets with attention to detail and finally having skilled installers install these custom cabinets into the customer's home.

As with many companies, the Pandemic of 2020 caused challenges. Revenue for the year was down about 25%. But as the year was ending, business and new projects were coming and the start to 2021 has been very strong.


Business Details

Primary Business Category: Manufacturing - Wood Products
Location: Minnesota

Company Information

Year Established: 1980
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 8 FT

Financial Information

Asking Price: $1,500,000
Gross Revenue: $1,186,137
Cash Flow: $158,411
FF&E: $335,075
Inventory: $20,317
Real Estate: $675,000
Seller Financing Available: No

Property Information

Facilities:

The business is located in a 10,700+ square foot building owned by the owners through a separate legal entity. The building houses the showroom, offices, design/drafting offices and the manufacturing floor where raw material is stored, the cabinets are made, and the finished products are stored until delivery. The building sits on the 2 1/2 acre lot with sufficient asphalt parking spaces for both customers and employees. The building was built in 1997 and is in excellent repair. The showroom was recently remodeled. For use of the building, the business pays rent to a separate business entity owned by the business owners. Approximately 700 square feet is rented out to another company who has been in that space for about 20 years.

Growth & expansion opportunities:

Prior to the Pandemic of 2020, the business has been very steady with no real marketing. A more active marketing effort, like additional advertising, attending home shows, etc. could create additional growth opportunity.

Competition:

There are other custom cabinet making competitors within the surrounding area as well as across the Twin Cities of Minneapolis & St. Paul.

Reason for selling:

The owners wish to retire.

Support & Training:

Will train for 4 weeks @ no cost The custom cabinetry is finished with the wood species, stain, paint and door styles to compliment the customer's home. The company also partners with quality cabinet hardware and countertop providers. The qualified buyer will have the experience and skills to manage this custom cabinet manufacturing company. The current employees have sales, financial, design, drafting, manufacturing and installation experience and skills. The quality buyer will have the ability to compliment these employees. No particular license or certification is necessary to own this business.

Contact Business Seller

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Business Listed By:

Darrel Damhof

Murphy Business Brokers