This Company is a reputable sales, marketing, and project management company with an emphasis on residential remodeling. As a skilled project management company, the Business has managed numerous projects in every area of residential space. From the kitchen remodel Michigan homeowners are clamoring for, to brand new flooring, or complete redesigns/remodels, the Company’s process ensures that its customer’s experience is stress-free, smooth, and easy. The Company offers plenty of resources (including its long-standing relationships with local subcontractors) to help answer customers’ questions, guide in their decision-making process, or provide useful tips in various aspects of remodeling and design.
The Company has a three-fold function as a residential interior design firm, cabinet and product dealer, and project management and contracting company. This unique service offering and consultative sales approach differentiate the Company in a competitive marketplace.
The Company does not perform new construction or commercial work and takes on projects within a 35-mile radius despite the external demand. The Company primarily adds missing amenities or finishes upgrades for customers. They utilize their well-known brand and efficient sales process to reach customers and handle any residential project on time, on budget, and to the customer’s approved plan.
A husband and wife team founded the Company in 1980 and built a strong foundation that operates today. This Business has already completed a successful sale process from the founding generation to the next generation. In 2008 their son became President of the Company. He has spent his entire life in the Business and is ready to move on to a new challenge. He is willing to train the new owner(s) and help them with the transition phase. He is happy to work 24 hours per week, offering consulting services to the new owners for a flexible period of time. There are only three (two full-time and one part-time) employees, and all employees operate remotely, making for a smooth transition.
Buyers will be required to have a minimum of $200,000, solid credit, and preferably industry experience to qualify for SBA 7a financing.
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Business is home-based and relocatable.
Growth Opportunities Include: (1) Cross-Sell Products: The Company has improved EBITDA margins over the past few years because they have been able to cross-sell products and services. Moving forward, there are numerous segments that a new owner could expand into as there are various exterior additions that could be made for residential houses. (2) Geographic Expansion: The Company has been able to consistently make roughly $1.5M-$2.0M in sales each year with solid Seller’s Discretionary Earnings margin. The Company stands behind strong brand longevity and its extremely efficient sale process. The owner has recently limited the firm to a 35-mile radius around Grand Rapids, MI, despite demand in surrounding areas. A new owner could easily transition into the Business and rapidly grow the Company by expanding into new geographical markets. (3) Potential Acquisition Target: Because the Company subcontracts its labor and construction services out and is best known for their incredibly efficient sales process, a residential remodeler or residential construction firm could acquire the Company and add $1.5M-$2.0M to their top line, as well as a streamlined sales process and sales wing to their current operation. The Company has no Human Resources department or any cultural issues which could make an acquisition in the future seamless. Additionally, because all the Company’s employees work remotely, a new firm would not have to acquire a new office space and could immediately start implementing the Company’s sales and marketing process.
Investment Highlights Include: (1) Three-Fold Business Model: The Company is a design/build residential remodeling firm. The Company is focused on helping customers make their current home the place they want to live for a long time. The Company utilizes a three-fold business model. It functions as a residential interior designer, cabinetry and product retailer, and residential builder. (2) Incredibly Efficient Sales Process: The Company can compete in a highly fragmented market because of its incredibly efficient sales process. The Company focuses on selling customization, giving every project its own unique characteristics. The pricing for each project is based upon customer’s requests, making the quoting process easily transferable to a new owner. (3) Light, Lean, and Remote Team Makes for Easy Transition: The Company comprises three employees, including the owner. There is zero overhead expense as the firm operates with a light and lean staff. All employees work remotely, giving them a strong competitive advantage over other remodeling firms throughout the COVID-19 pandemic. This also will help with the transition process of a new owner into the Business. (4) Award-Winning Services: The Company is best known for its award-winning services. The Company has substantial experience in remodeling kitchens, bathrooms, foyers, and many other spaces within each home. With over 40 years in the industry, the Business has the expertise, experience, and brand recognition to continue growing into the future. (5) Long-standing Reputation Amongst Customers: The firm is recognized as an industry leader on the national, regional, and local levels. The combination of offering a diversified suite of products and having multiple decades of experience makes the Company a durable Business with an advantage over other residential remodelers.
The current owner made a commitment twenty years ago to himself to transition to a new venture in the year 2020 and has been preparing for a flexible succession process since January 2019. The seller is committed to see the brand remain successful and provide the buyer with an expert consulting experience to grow the Business under new leadership.
Ownership is willing to provide reasonable and customary transition assistance. The owner is happy to stay on part-time for 24 hours per week in a sales capacity to help the new owner(s) transition effectively and help grow the Business.