Established Kitchen and Bath Design Firm

Confidential, CA

Asking Price: Annual Revenue:
$207,000 $634,000

Services: Professional

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RE: Established Kitchen and Bath Design Firm Broker: Edward Anderson
License #: 02071556

Quick Facts

Asking Price: $207,000
Annual Revenue: $634,000
Net Profit: Not Disclosed
Cash Flow: $105,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2006
Employees: 1
BBN Listing #: 950656839
Broker Reference #: LOSWHIT001-N30

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Business Overview:

Beautiful Sales Showroom in Desirable Location! This business has a strong reputation as evidenced by its 4.5 star Yelp rating. The elegantly appointed showroom is in a desirable location in a revitalized business district. Marketing efforts are comprised of word of mouth, internet and print advertising, with most leads coming through word of mouth referrals and interest generated by showroom visibility on a vibrant street. The majority of remodels involve kitchen and bathroom projects. The owner is known for strong design vision and creative energy, and the ability to transfer customer tastes, desires and preferences into functional and attractive upgrades that blend well with other rooms in the house. The company typically completes 25-30 design projects per year for both individual home owners and custom home builders. Cabinetry comprises the majority of the revenue. Beyond the cabinets, countertops, flooring, tile and plumbing hardware and fixtures are also important revenue items. This business has distribution agreements and deep discount pricing with U.S. manufactured cabinet companies. In addition, the company has liberal lines of credit with hardware and fixture distributors. Based on these long term relationships the company is able to provide high quality cabinets and fixtures at competitive prices. The company uses 20/20 Design software which produces computer generated renderings of the proposed design and also cross references the build list to develop material costs for the project. These two aspects of the software provide significant enhancement to and time compression of the sales presentation. The company charges for this front end design work. The design charge is then credited against the contract price for the project. The company converts 90% (???) of designs into contract projects. The ideal buyer for this business would be creative with high energy, an eye for aesthetics and a strong attention to detail. Retail design and sales experience would be a plus. An additional plus would be a buyer that possesses a general contractor license who could deliver a turnkey project, eliminate the need for customers to deal with the installation subcontractors, and improve the company profit margin via markup on pass through invoicing of subcontractor pricing. The current lease is $1,885 per month. The lease is a “gross” lease. Landlord is responsible for all building upkeep and maintenance. The lease expires April 30, 2021. The lease is assignable per landlord approval of new owner. The business employs a part time administrative assistant who would likely be willing to stay with new owner. The owner is selling to retire and will execute a non-compete agreement at buyer request. Seller will provide 4 weeks of training at 15 hours per week after the close of escrow.

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Property Features and Assets:

Real Estate License ID: 02071556

Reason for Selling:

Owner selling to retire

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.

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