Business Overview:
The business for sale is a highly successful distributor of hollow metal doors, frames, wood doors, pre-finished steel doors and related architectural hardware for commercial and residential applications. The company primarily services general contractors, developers, commercial/industrial building owners, and residential customers throughout the Midwestern United States. Projected to post $2.0 million in revenue and approximately $487,000 in EBITDA for Fiscal Year End January 2012. By 2016, this company’s revenue is anticipated to reach $3.2 million. Maintains a well-planned and organized website, which provides a wealth of information on its history, product lines and service offerings.
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Property Features and Assets:
Company operates from a 30,000 square feet facility. The facility is owned separately by the majority shareholder and leased to the company. The fair market value lease rate is approximately $16,000 per month. The land and building are available for sale and have an estimated fair market value of $3 million.
Market Competition and Expansion:
The Company is well positioned to capitalize on the positive growth forecast for its industry. Its strong client relationships and reputation for high-quality products and services provide a firm foundation for future growth opportunities. Future growth for the Company will most likely be driven by diversifying service offerings and expanding its customer base. Opportunities to grow revenue more aggressively include:
• Sales and Marketing. Increased sales and marketing resources could contribute greatly to revenue growth. The Company receives a significant amount of requests for proposals on a daily basis, but must pick and chose which projects to pursue based on available resources and highest probability of being awarded. A larger sales staff could “chase” more projects. This Company does not employ a direct sales force and spends most of its efforts responding to inquires. An outside sales force could quickly expand its account base to include more of the larger general contractor customers that work on projects throughout its operating base.
• Product Expansion. Management has identified numerous product lines that compliment its current line of products and that fall into the same category of items in bid specifications. Opportunities include additional hardware items, different brands of doors, a greater selection of wood doors and bathroom partitions to name just a few.
• Government Projects. Becoming a GSA certified contractor/supplier could lead to an entirely new market for this Company. In just its local market, government hospitals, various agencies and an Air Force Base would provide bidding opportunities. Additionally, as a GSA vendor, theoretically the entire United State market would then be open to this company.
Reason for Selling:
Diversification of owners’ personal financial inte
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
Resources: