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Furniture Fabrication Company w/ $655K Annual SDE 🪑
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey fellow searchers,
Welcome to issue #24 of Under the Radar!
Let’s get right into it.
This week’s issue features:
🗄️ Cabinet manufacturing company w/ $2.4M annual revenue
🪑 Furniture fabrication company w/ $655K annual SDE
☘️ Sod installation & service biz selling at 2x SDE
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Cabinet manufacturing company w/ $2.4M annual revenue
🏷️ Asking Price: $1,400,000
📍 Location: Northern Virginia
Overview: Founded in 2006, this business specializes in custom woodworking, particularly in designing, fabricating, and installing cabinets and vanities. Serving both residential and commercial clients, it operates from a 13,000 sqft facility (available for purchase for $3.25M or lease) equipped with state-of-the-art technology. The business is led by an experienced management team supported by skilled craftsmen, each with over 30 years of woodworking experience. Established relationships with key vendors and wholesalers also help ensure a reliable supply chain and advantageous pricing.
Key Highlights ✅
~$2.44M annual revenue
~$711K annual SDE
$1.04M FF&E (included)
$30K inventory (included)
Seller financing available
15 employees
Growth Avenues 🚀
Forming strategic alliances with home builders, architects, and interior designers can provide a steady stream of projects and expand the company's market reach.
Implementing robust digital marketing strategies, including SEO, PPC, and social media campaigns, could significantly increase the company's visibility and attract a broader client base.
Potential Risks 🚩
Retaining skilled craftsmen and attracting new talent in a competitive labor market can be challenging, potentially affecting production capacity and quality.
While the company has limited direct competition locally, the threat of new entrants and existing competitors expanding their services remains a risk.
Questions❓
What are the terms and durations of current vendor contracts, and are there any exclusivity clauses?
What is the nature of the relationships with residential and commercial clients, and what is the breakdown of revenue between these segments?
Will the current management team remain post-acquisition to ensure a smooth transition and continuity of operations?
#2. Furniture fabrication company w/ $655K annual SDE
🏷️ Asking Price: $1,500,000
📍 Location: Las Vegas, NV
Overview: Established in 2014, this business specializes in the fabrication of custom home and commercial furniture and draperies as well as electric window shades. Operating from a 6,900 sqft facility, the business caters to a substantial market without the need for retail or showroom sales. Orders are sourced directly from interior designers, decorators, architects, and builders, ensuring a steady stream of custom work. The company enjoys a stellar reputation, high-profit margins, and has seen significant growth with minimal advertising efforts. The owners will remain as part-time employees to fully train a new owner, and for continued business development support if needed.
Key Highlights ✅
~$1.96M annual revenue
~$655K annual SDE
$41K FF&E (included)
$300K inventory (included)
18 employees (fabrication, admin, sales, etc.)
SBA pre-approved
Growth Avenues 🚀
Expanding the existing sales and business development team to further grow the customer base and drive revenue. Adding specialized staff can help tap into new markets and client segments, boosting overall sales.
Building stronger relationships with more interior designers, architects, and builders. Partnering with high-end real estate developers and property management companies also can provide a steady stream of projects.
Potential Risks 🚩
Heavy reliance on referrals from interior designers, decorators, architects, and builders can be a risk if these relationships are not maintained or if these sources face economic downturns.
Dependence on suppliers for materials can pose a risk if there are disruptions in the supply chain. Ensuring a diverse supplier base and maintaining good relationships with vendors is crucial.
Questions❓
How stable and reliable is the supply chain, and are there any risks associated with key suppliers?
What are the specific terms of the current lease, and is there an option for renewal?
How strong are the existing relationships with interior designers, decorators, architects, and builders, and are these relationships transferable to a new owner?
#3. Sod installation & service biz selling at 2x SDE
🏷️ Asking Price: $1,400,000
📍 Location: Southwest Florida
Overview: This well-established sod company has been serving residential and commercial clients for 47 years. With a reputation for quality and expertise in sod installation and maintenance, the business boasts three generations of experience. It handles all sod needs, from replacement and repairs to full installations, making it a trusted name in the industry. The owners are looking to retire, presenting a prime opportunity for a new owner to step into a profitable and lender pre-qualified business with only $200,000 down.
Key Highlights ✅
~$2.6M annual revenue
~$701K annual SDE
$350K FF&E (included)
11 employees
Growth Avenues 🚀
Forming strategic partnerships with real estate developers, landscapers, and construction companies to secure consistent large-scale projects.
Implementing a robust digital marketing strategy, including SEO, PPC, and social media campaigns, to increase visibility and attract more clients.
Potential Risks 🚩
Adverse weather conditions, such as hurricanes and tropical storms, can impact operations and demand for sod installation and maintenance.
Potential for increased competition from new entrants or existing companies expanding their services in the area.
Questions❓
What is the breakdown of revenue between residential and commercial clients, and how stable are these client relationships?
Will any key management or staff remain post-acquisition to assist with operations and business continuity? Additionally, what are the roles and responsibilities of the 11 employees, and how critical are they to daily operations?
What is the current condition of the included FFE, and are there any immediate capital expenditures required for maintenance or replacement?
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week's featured tweet comes from Sam Rosati, who shares a no-nonsense guide to kickstarting your search for buying an SMB today. If you've been stuck in the "I'll start tomorrow" phase, Sam's 10 quick steps will get you moving right away. Check it out👇
Are you “planning” to search to buy an SMB? Or stuck in the "I'll start tomorrow" phase?
Or worse yet, telling yourself you will search when the time is right?
Do these QUICK 10 things to get started TODAY:
1. Create a search name. Do NOT include the word “capital” unless you… x.com/i/web/status/1…
— Sam Rosati (@Sam_Rosati)
2:14 PM • Aug 7, 2024
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DISCLAIMER: This newsletter is for informational purposes only and should not be considered financial advice. It offers analyses of businesses without endorsing any specific financial actions. Readers are advised to do their own research and consult a professional before making investment decisions.