Business Description
Great Business!
RVA Business Brokers are delighted to bring this incredible opportunity to purchase a multi-million dollar purveyor of high quality kitchen and bath cabinetry, countertops, decorative hardware, and sinks to market. Owners are ready to retire and pass this on!
This business has been SBA pre-approved for a qualified buyer.
The business worked exclusively with high-end builders in new construction until 2009, when the recession required they re-evaluate their business plan. They entered the remodeling industry, working directly with upper middle-class homeowners to great success. High-end builders now account for 50% of the revenue with the remaining 50% from direct sales and installs for homeowners.
There are two owners of the business, one of the owners can be replaced by an employee that will step up and is currently the operations manager, the other owner can be replaced by adding an internal bookkeeper or outsourcing that function.
The dual client business plan continues to improve the bottom line. Between 2020 and 2021, revenue increased 37%.
The Company is well known in North Florida throughout Nassau, Duval, Clay, and St. Johns counties. The US Census reports ~370,000 owner-occupied homes across all counties in 2020. Of those, ~122,000 are valued at $300,000+.
Facebook is the number one marketing tool that the Company uses. Customers also find the gorgeous website via Google searches. The seller has considered using targeted direct mail campaigns to grow the business.
The kitchen and bathroom cabinetry and design business is a strong company with a solid business model, long-standing relationships with local builders, and impeccable customer service.
Cash flow for this industry is incredible, currently nearly 85% of the invoice to customer is paid before any cash is expended by company, making expansion very cash flow friendly.
Investment Highlights
$2,100,000 Price
Past 3 Year Average Cash Flow/SDE: $460,000
12% Cash Flow in 2022
FF&E valued at $328,784
Works with home builders and contractors and upper middle class homeowners
Long-standing relationships with home builders, some 5+ years
18,000 kitchens and bathrooms installed!
Knowledgeable sales/designer team
Contracts require 50% down payment before starting the project
SBA Pre-Qualified
Growth & Expansion:
Exponential growth is absolutely achievable with a strategic use of marketing media to better penetrate the customer base. The Company’s customer base is upper middle-class homeowners North Florida.
The Company is active on Facebook and has a beautiful website that customers through Google searches. The seller recommends focusing on Instagram to increase sales.
Consider engaging a marketing agency to develop a direct mail strategy targeting specific zip codes. The key is to build a strategy that targets individual neighborhoods to monitor growth and ROI.
Facilities:
The Business occupies a 10,000 sq. ft. space, which includes a 4,000 sq. ft. warehouse and a 2,000 sq. ft. office. The gorgeous 4,000 sq. ft. showroom includes 33 kitchen and bath displays.
The property is on a 5-year lease with an option to renew.
The showroom is on a busy thoroughfare, seeing 45,000+ cars per day.
Support & Training:
The Business employs a staff of 7. The Sales Associates/Designers are highly knowledgeable and average 2 years with the company. The designers are salaried and commissioned.
A transition period with the seller is also included.
Reason for Sale – Retirement
Detailed Information
Location: Jacksonville, FL
Inventory: Not included in asking price
Real Estate: Leased
Building SF: 10,000
Lease Expiration: N/A
Employees: 7
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities: The Company serves homeowners and businesses in Jacksonville and throughout Duval, St. Johns, Nassau, and Clay Counties. Combined, the counties represented 370,700 owner-occupied homes in 2020. Of those, approximately 122,360 are valued at $300,000+ across all counties. Assets The sale includes assets valued at $328,754 including: – 1 – 2022 Chevrolet Silverado for the Operations Manager – 2 – Isuzu NPR Delivery Trucks – 1 – 2005 Service Van in good condition – Computers, printers
Competition: The Co’s ultimate customer is upper middle-class homeowners with dual incomes. The Company serves the demographic through new home construction and remodels. Revenue is split evenly, 50/50, between new home construction and remodels. The Company works with several home builders, with the top 4 contributing 35% revenue. The Co holds very strong relationships with their home builders, with many being with them for 5+ years. One construction manager takes his business with the C to every builder he has worked.
Growth & Expansion: The Company crosses three billion dollar industries: – Cabinet & Vanity Manufacturing is a 17.1BN US industry in 2023. – Home Builders is a 124BN industry in 2023. – The Remodeling industry is valued at $104.8BN in 2022. Sitting at the center of the three industries gives the company a unique opportunity to shift their focus as the industries adjust with economic changes and customer tastes.
Support & Training: As needed and as Negotiated
Reason for Selling: Retiring
