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15 Year Old Denver Custom Millwork and Metal Shop with a 24 Percent Profit Margin, 5 Star Rating and 88 Percent Recurring Revenue

ManufacturingFor Sale in CO

Listing ID: 32896 | Broker Listing ID: BLP039718

Financial & Assets Details

$1,350,000
$309,000
$200,000
$125,000

About the Business

2007
Yes

Business Description

15-Year-Old Denver Custom Millwork and Metal Shop that Builds Fixtures for Commercial Clients

The trailing 12 months to July 31st, 2022, revenues were 1.35M with 309K in earnings. He bought the company May 31st 2021, but has been advised to sell for medical and family reasons. The financials in the data room for 2021 are only from June 1, 2021, to December 31st. This company has seen long-term growth and expects that to continue with the new owner.

Most of their work is furniture and fixtures for restaurants, grocery stores, and other commercial spaces. 88% of their revenues are recurring. The company serves mostly commercial clients and a few high-end residential designers. By providing everything from design to fabrication, to delivery and installation, the company can maximize profitability while ensuring that the customer gets a quality product. They get 19.7% of their revenues from a well know grocery chain which has traditionally been their biggest customer which they have a MSA(Master Service Agreement) contract with. They provide the fixtures and work directly with their store managers, designers, and corporate maintenance teams. They are often specified as the sole supplier in the companies’ architectural drawings. They also provide fixture maintenance for local stores. They also have several 2 construction companies as customers which made up 11% and 12% of their revenue over the last year providing wood and metal work for bars, restaurants, and dispensaries. One of them is currently trying to send them more work than they can currently handle. The new owner can take on this additional work.

This company has a great reputation as proven by a 5-star Google Rating. The owner has not taken the opportunity to do any outside marketing or expand the type of work that the well-equipped shop could handle. The owner states “We have some family dynamics going on that require more time at home. I have been dealing with health issues that require me to scale back.” The shop is very underutilized as you can see in the video interview and walkthrough in the data room in the sales package that will be sent after sending in the non-disclosure agreement. The company also has a 1.0 modification rating for their workman’s comp insurance which means they have been a very safe business for the last 3 years. This company’s ratings are very valuable to the new owner for future marketing.

The owner will offer a full transition for as long as the new buyer wants him to.

You also get approximately 200K in current value Assets made up of mostly equipment. The 200K does not including the inventory. The inventory as of mid-August is 125K. There are lists in the data room.

A Sales Price of 490K plus inventory. 490K is only 1.6 times the trailing 12 months earnings of 309K. This is a great opportunity not only because of the low price to earnings, 24% profit margin, 88% recurring revenues, 5-star Google Rating, quality and loyalty of employees, long-term customers, underutilized equipment and location, and 200K in assets.

This is a “Fun” business to own. The buyer can anticipate a very smooth transition with the owner, employees, and customers. With current booked jobs, raw materials in-stock, and skilled employees, you will be productive on day one.

This is an LLC and it will most likely be an Asset. It is priced as an Asset Sale which means the business will be offered with the Seller keeping his cash, AR, and AP and transferring the business debt-free. He will leave any unused deposits.

Location: Denver, CO 80239

Details:

The heavy lifting is already done. The buyer will also step into a solid shop that has a lot of room to grow with a rebranding starting to take place that includes a new and impressive website. The business has a lot of work in progress so the business should not change the day after the closing. The employees stayed after the last ownership transfer and will stay again. The company has 10 trustworthy, competent, and reliable employees. Many of the employees have worked for the company for many years. The Seller believes all employees are loyal, love their jobs, and will all stay after the transition. The Seller will sign a non-compete.

The current owner has focused on ensuring that there are good internal processes in place. Employee policies, recruiting and onboarding, and safety programs are all in place.

They have a great reputation for the quality of our work, dependability, accurate bidding, and for fair dealings. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) and no legal issues. The seller will offer “to off-set” against the sales price for any liabilities originating before the closing and indemnify the financials.

Growth & Marketing Opportunities: China is becoming a less trusted source of manufacturing because of supply chain issues and the tension building with Taiwan. The shop is 35% utilized or less. There is room for at least another 6 employees with the space and equipment that he has but there is room for more than twice the equipment including higher end CNC multipurpose machines which are more efficient and can do more precise higher margin work. A 2nd shift could be added also. The shop specializes in fixtures but there are hundreds of other specialties the shop could handle. He has turned down over $1M in work that in other circumstances he would have taken. The new buyer can set up many specialty businesses with their own marketing and websites. The business has 4,000 verified emails from past business contacts, 300 Instagram followers, and 70 on Facebook. One employee has recently agreed to help them gain more social media interest. He has done no SEO or other website marketing. There are many ways to increase sales. The company has laid the ground-work and has started the process of designing their own line of products to sell to commercial and residential customers. This is still very early in the process but will certainly be very successful given the constant pressure to buy things that are made locally and of higher quality.

The current team includes management. There is a shop manager who handles all of the ordering, shop organization, and knows the ins and outs of the workflow. All of the craftsmen are self-starters and move projects forward with minimal oversight. There are two designers who handle all aspects of designing and operating the CNC machines.

Their location is leased with a 20,000 square foot building with 3 years left on a great lease and a landlord who will be happy to negotiate a longer lease. The lease is $16,200 per month plus triple net. The location has been a safe with zero break ins or theft. There is a separate area for the offices, 3 bathrooms, high ceilings, excellent dust overhead vacuum with room to add on and in excess of what is required.

The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s).

Thank you for your interest,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

Growth & Expansion

China is becoming a less trusted source of manufacturing because of supply chain issues and the tension building with Taiwan. The shop is 35% utilized or less. There is room for at least another 6 employees with the space and equipment that he has but there is room for more than twice the equipment including higher end CNC multipurpose machines which are more efficient and can do more precise higher margin work. A 2nd shift could be added also. The shop specializes in fixtures but there are hundreds of other specialties the shop could handle. He has turned down over $1M in work that in other circumstances he would have taken. The new buyer can set up many specialty businesses with their own marketing and websites. The business has 4,000 verified emails from past business contacts, 300 Instagram followers, and 70 on Facebook. One employee has recently agreed to help them gain more social media interest. He has done no SEO or other website marketing. There are many ways to increase sales. The company has laid the ground-work and has started the process of designing their own line of products to sell to commercial and residential customers. This is still very early in the process but will certainly be very successful given the constant pressure to buy things that are made locally and of higher quality.

Market Competition:

Most of their work is furniture and fixtures for restaurants, grocery stores, and other commercial spaces. 88% of their revenues are recurring. The company serves mostly commercial clients and a few high-end residential designers. By providing everything from design to fabrication, to delivery and installation, the company can maximize profitability while ensuring that the customer gets a quality product. They get 19.7% of their revenues from a well know grocery chain which has traditionally been their biggest customer which they have a MSA(Master Service Agreement) contract with. They provide the fixtures and work directly with their store managers, designers, and corporate maintenance teams. They are often specified as the sole supplier in the companies’ architectural drawings. They also provide fixture maintenance for local stores. They also have several 2 construction companies as customers which made up 11% and 12% of their revenue over the last year providing wood and metal work for bars, restaurants, and dispensaries. One of them is currently trying to send them more work than they can currently handle. The new owner can take on this additional work.

Location Details:

Their location is leased with a 20,000 square foot building with 3 years left on a great lease and a landlord who will be happy to negotiate a longer lease. The lease is $16,200 per month plus triple net. The location has been a safe with zero break ins or theft. There is a separate area for the offices, 3 bathrooms, high ceilings, excellent dust overhead vacuum with room to add on and in excess of what is required.

Support & Training

Will stay as long as needed

Reason for Selling:

Health reasons

Listing ID: 32896

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