Modern Cabinet Design and Manufacturing Business

Not Disclosed, CA
San Francisco County

San Francisco Bay Area

Asking Price: Annual Revenue:
$950,000 $1,590,493

Retail: Home Furniture & Furnishings

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RE: Modern Cabinet Design and Manufacturing Business Broker: George Hashimoto

Quick Facts

Asking Price: $950,000
Annual Revenue: $1,590,493
Net Profit: Not Disclosed
Cash Flow: $411,748
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2007
Employees: 4
BBN Listing #: 37084955
Broker Reference #: 7010-17077

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Business Overview:

Here is an excellent opportunity to acquire a profitable, well-established modern cabinet design and manufacturing business with a retail showroom located in San Francisco Bay Area. The business specializes in modern kitchen cabinetry for single and multi-family residential projects.

The business serves the medium-to-high end market for modern kitchens and also designs/supplies cabinets for but can provide for bathrooms, closets, and other living spaces. The cabinets are fabricated in the United States and Canada using the highest quality components such as drawers, hinges, opening hardware, and face finishes, largely from European suppliers. The business also provides design services, including 3-D drawings and renderings as part of the design development and sale process.

The business was started by the present owner in 2007, to address the growing demand for quality, well designed kitchens made in the United States.

The ideal buyer is an existing cabinet manufacturing business, interior designer or retail cabinet dealer. Buyers with experience in design or fabrication, or home improvement is preferred.

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Property Features and Assets:

Leased office/retail space of approximately 1,200 square feet. Assets = $129,996

Market Competition and Expansion:

Competitor include cabinet manufacturers, dealers and shops serving medium to high end market for single family and multi-family projects. New housing and remodeling California is facing a severe housing shortage which is not forecast to ease even with the record number of housing starts. New multi-family housing projects are designed almost exclusively in a modern style, therefore modern kitchens are specified by architects as part of the project The Bay Area, and San Francisco specifically is a wealthy market. The median income in San Francisco is over $119,000 per year. The Bay Area is in the 97th percentile of income levels in California. Real estate values continue to rise as they have over decades, making remodeling a financially reasonable choice. Kitchen and bath remodels in particular enhance the value of real estate and generally more than pay for themselves. These conditions make the SF Bay Area a prime growth market for modern kitchen and bath cabinetry. Apartment housing This business has focused its multi-family bid participation to condos because developer budgets are higher. The market has shifted somewhat to apartments. To meet this demand, which has lower budgets, The business has teamed up with a factory whose modular cabinets cost allows it to compete for these projects without sacrificing quality. The only limitations are cabinet sizes and finishes, but developers are willing to accept them for the lower cost. This business expects to be awarded its first major apartment project—over 450 units—shortly, and is bidding on others. New geographies This business could expand its market to other urban centers, such has Seattle, Portland, Los Angeles, San Diego, Chicago, and New York. Other US kitchen companies still have not met the challenge from European competitors who have entered the market with innovative design, new materials, and improved functionality: US kitchen designs are largely versions of “modern” kitchens developed in the 1950s. Most architects continue to “design” kitchens from this era. This business could fill the niche for modern kitchens that meet the design challenge, with cabinets made in North America in a larger geographic market. New products Following most branded European kitchen companies, there is an opportunity to develop lines of furniture that can be fabricated using existing cabinetry machinery. Such lines could include dining tables, closets, night stands, buffet tables, work tables and more. Leveraging relationships The business has formed a relationship with a general contractor that would like to have a single-source cabinet supplier/installer.

Reason for Selling:

The owner is looking 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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