Finish Carpentry Contractor and Custom Cabinet-Countertop Designer Installer in Nevada
ConstructionFor Sale in Reno, NV
Financial & Assets Details
About the Business
Two rapidly growing sister Companies in the same market, presented in a combined offering.
A Finish Carpentry Contractor that specializes in all aspects of finish carpentry product and services working primarily with large homebuilders of single-family homes and commercial and multi-family developers. The Company delivers projects in all aspects of finishing required for single family and multi-family residential dwellings such as doors, door frames, base boards, crown molding, windows, built-in closets, fireplace mantles, etc. The Company's revenue is well diversified across multiple large homebuilding clients. The Finish Carpentry Contractor has many opportunities to expand its product and service offerings to its existing client base, using the same skill sets that it already uses to perform its core services. There is ample opportunity for the Company to expand into providing more finish carpentry services to its core client base, including: windows and exterior doors (including garage doors).
A Custom Cabinet & Countertop Designer/Installer that specializes in custom cabinetry and countertops for a client base consisting of single-family homes, multi-family homes, and commercial clients. The Company is divided into two divisions. The Custom Division focuses on custom design work for the residential market with a focus primarily on the remodeling of kitchen, bathroom, or home office. The Multi-Family and Commercial Division focus is on the installation of cabinets and countertops for multi-family developments and commercial properties. The Custom Division base of operation is the Company’s showroom designed for homeowners to come in and see in person multiple layouts of kitchen designs featuring various cabinet and countertop designs and surfaces. The Multi-Family and Commercial Division services are sold through direct business to business relationships with a dedicated sales and design team. The Company's revenue base in its multi-family and commercial division is well diversified across multiple large multi-family home developers operating in the Reno-Sparks-Fernley MSA.
Both Companies are among the largest companies focused on carpentry work and custom Cabinets/Countertops in the region. Their size and buying power provide both Companies economies of scale and supply chain advantages over smaller competitors. The Multi-Family Home and Commercial markets offer ample opportunity to expand sales and the client base.
Both Companies have experienced rapid sustained growth over the last several years with no end in that growth foreseen. Estimated revenues for both Companies in 2021 are again expected to grow 20 to 25% over 2020 with much of this revenue already under contract with large home builders of single family and multi-family residences. Given the high demand for their services, the Companies have been able to sustain their operating margins throughout their rapid growth and last year (2020) saw further expansion of their net operating income margin due to better buying and increased demand.
The services provided by the Companies are in high demand by many of the largest homebuilders and multi-family developers active in the greater Reno-Sparks-Fernley MSA, which is one of the fastest growing economic regions in the Western U.S. According to the State of Nevada's most recent publication, the region is home to a population of more than 550,00 and continuing to expand with many large companies opening large manufacturing facilities in the region.
The Businesses operate out of an 23,500 SF Warehouse and a 24,000 SF Warehouse respectively, with the Cabinet Designer also operating a 4,000SF Showroom/Office. Combined, the businesses have over 103 employees.
Both Companies has well experienced and established management teams.
The Companies are highly differentiated as follows:
• Consistent growth and profitability year after year.
• Rank extremely high among their peers in performance and competence.
• The Carpentry Contractor Business managed by an experienced General Manager and a young management team with well-defined roles and job responsibilities. The current Owners have no management role in the day-to-day operation of the Contractor business but do work in the Custom Cabinet business.
• A++ list of Corporate clients: Multiple national homebuilders and multi-family developers who are active in the region.
• They operate in the Reno-Sparks-Tahoe-Fernley CSA which is one of the fastest growing economic regions in the Western US due to its day drive distance to many of the largest commercial centers and port facilities in the United States and favorable tax and business regulation environment. It is ranked in the Top 10 of the friendliest for business in the United States.
Since 2012, the growth in jobs in the Reno-Sparks-Tahoe-Fernley CSA region has averaged more than 8,000 new jobs per year, many of them coming from high tech firms that were attracted to the region, given its proximity to the West Coast and the West Coast labor pool. A prominent example of this trend is the Tesla battery plant (Giga Factory 1 Plant) at the Tahoe Reno Industrial Center that opened in 2014 and continues to be built out in phases, which when completely built will be the largest building in the world.
According to the US Bureau of Labor Statistics the Reno-Sparks-Tahoe-Fernley CSA region has experienced a buildup of demand for housing based on job growth over the last seven years which has averaged more than 8,000 new jobs per year over much of the last decade while adding on average only 2,500 new housing units per year. It is estimated that to establish and maintain equilibrium 5,000 new housing units are needed, twice what the market has been producing over the last several years. Given this disparity single and multi-family housing starts are expected to continue at an accelerated rate as the region attempts to fix a housing shortage. Evidence of how severe the shortage of available housing is in the Reno - Sparks region was evident in the November 2020 Market Report from the Reno/Sparks Association of REALTORS who reported that the Month’s Supply of Housing Inventory for the region was at 2 weeks. A balanced healthy market is defined at between 5- and 7-months’ supply of inventory.
Growth & Expansion
Contractor Warehouse Building SF: 23,500
Custom Designer Warehouse Building SF: 24,000
Custom Designer Showroom Building SF: 4,000
Reason for Selling:
Owners concentrating on other business ventures.