Business Overview:
This profitable furniture manufacturer offers high-quality, American-made furniture collections. Sales have been increasing year over year, with 2021 as its best year on record with over 50% revenue growth. Additionally, due to several new and lucrative contracts, 2022 is projected to be an even better year. It has both a very skilled workforce that’s able to create high-end, high-margin furniture and a solid, tenured team in place, ready to step up and continue under new ownership.
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Property Features and Assets:
The Company operated from several facilities. All are in excellent condition, perfectly meeting their current needs with room to support their rapid growth.
Market Competition and Expansion:
Competition: The Household Furniture Manufacturing industry is characterized by a low level of market share concentration. In 2021, only one company is expected to capture more than 5.0% of market share, while mainly small, privately owned manufacturers compete for the remaining portion of industry revenue. Despite fierce competition from imports, more than half the establishments in this industry are nonemployers that have carved out a niche in high-end markets.
Growth & Expansion: Demand For Furniture is expected to rise at an annualized rate of 2.9% over the next five years, representing a key demand driver for industry operators. Similarly, existing home sales are expected to increase at an annualized rate of 1.3% as real estate markets continually recover from pandemic contractions. Due to the strong relationship between real estate markets and furniture demand, any expansion in the creation and movement of housing stock will ultimately increase industry sales. Additionally, a healthy domestic housing market helps partially insulate the industry from long-standing negative trends, such as continued encroachment from foreign substitutes. Furthermore, consumer spending is expected to rebound as employment levels and per capita disposable income expand from pandemic levels. Over the five years to 2026, per capita disposable income and consumer confidence are expected to increase at annualized rates of 2.7% and 2.5%, respectively. Increased income will precipitate discretionary purchases, such as new furniture, and drive industry demand across varying price points.
Reason for Selling:
The owners want to pursue other interests.
Additional Details:
- The property is owned.
- 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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