Opportunities
Millwork Manufacturing for Churches & Schools with $6.4M in Backlog
90% commercial clients – 30 signed contracts for 2021!
Specifications
With 30 signed contracts worth $6.4M on the books for 2021, this year is looking to be the most profitable year on record for this custom millwork manufacturing company! Being considered an essential business, they have not been impacted by COVID. Based in a 10,000 sq. ft. facility with 900k+ in equipment and assets, this custom millwork business is affiliated with all major contractors in Utah. Established for 25 years and licensed in Utah, California, Idaho, New Mexico, and Hawaii, their clients include schools, churches, hospitals, corporate offices, universities, and government buildings, along with some residential work in apartment complexes, homes, and condos. Assets include CNC routers, a horizontal boring machine, gliding saw, state-of-the art bander, table saw, chop saws, timesaver sander, a state-of-the-art spray booth for finish work, plus all of the basic equipment & tools needed for each job. The highly skilled team is comprised of the owner, who handles general oversight, 1 Shop Forman, 2 Project Managers, 1 Estimator, 1 Production Manager, 1 Office Manager, 4 Installers, 10-15 Fabricators, and subcontracted installers as needed.
The business is licensed in Hawaii, which is a major advantage, as there is very little competition; the company has completed $4M worth of work there. Their reputation has earned them several contracts with top-name businesses, religious affiliations, and area universities.
Priced at $2,900,000, this company is in a prime position for growth! At max capacity in their current facility, expanding their labor force and facility would lead to incredible revenue growth. There is also strong potential to take over the market share in the region, as many smaller businesses will not survive the pandemic. A 12.5% down payment of $362,500 will return $382,999 in the first year after debt payments – a 106% return on investment.
Business Highlights
- Year Established: 1995
- Location: Salt Lake City, UT
- Service Area: Western U.S. Region: licensed in UT, CA, ID, NM, & HI
- Services: Fabrication, manufacturing, and installation of custom commercial millwork & cabinetry
- Clients: Primarily commercial (90%): schools, hospitals, churches, universities, government buildings, office buildings, banks
- Lease: 10,000 sq. ft. facility
- Reason for Selling: Approaching retirement
- Personnel: 9: 1 Shop Forman + 2 Project Managers, 1 Estimator, 1 Production Manager, 1 Office Manager, 4 Installers + 10-15 Fabricators and subcontracted installers as needed
- Seller Training Period: Will stay on 3-4 years
- Growth Opportunities: Increase the market share, expand facility & labor force to be able to take on more work
- Current Owner’s Responsibilities: General Oversight
Financial Highlights
- List Price: $2,900,000
- 2020 Cash Flow: $753,860
*amounts may vary
Cash Flow Analysis
| Description of Financial Statement | Tax Return | Tax Return | Tax Return | Notes |
| 2020 | 2019 | 2018 | ||
| GROSS SALES | $5,054,600 | $3,955,735 | $4,049,446 | |
| Net Income Shown on Financial Statement | $422,755 | $220,915 | $192,638 | |
| ADDBACKS | ||||
| Compensation to Owner | $117,528 | $115,457 | $108,890 | |
| 11% Tax on total W2 Salaries | $12,928 | $12,700 | $11,978 | |
| Depreciation | $29,355 | $43,686 | $113,989 | |
| Interest | $2,578 | $204 | $980 | |
| Simple IRA | $5,042 | $3,464 | $3,267 | 3% match for owner |
| Auto Expense | $14,460 | $19,611 | $17,631 | 50% personal |
| Cell Phones | $3,600 | $3,600 | $3,600 | $300/month for personal lines |
| Misc. | $15,000 | $15,000 | $15,000 | Personal expenses |
| Meals & Entertainment | $16,916 | $10,000 | $0 | Personal expenses |
| Travel | $10,000 | $10,000 | $10,000 | Personal expenses |
| Replacement Salary | $-75,000 | $-75,000 | $-75,000 | To replace/retain owner |
| One-Time Travel Cost | $0 | $137,095 | $0 | |
| Gifts | $33,718 | $0 | $0 | |
| Owner Christmas Bonus | $10,000 | $0 | $0 | |
| Equipment Rental | $85,000 | $0 | $0 | One-time expense |
| Professional Fee | $49,980 | $0 | $0 | Non-onward going |
| TOTAL ADDBACKS | $331,105 | $295,817 | $210,335 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $753,860 | $516,732 | $402,973 | |
| Profit Margin | 14.91 % | 13.06 % | 9.94 % |
Clients
- Schools
- Hospitals
- Banks
- Office Buildings
- Universities
- Government Buildings
- Churches
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Services
- Fabrication, manufacturing, and installation of custom commercial millwork & cabinetry
Personnel
- 1 Owner
- Manages all oversight, oversees the office manager and estimator, and answers project questions with managers if there are any.
- 1 Shop Foreman
- 2 Project Managers
- 1 Estimator
- 1 Production Manager
- 1 Office Manager
- 4 Installers
- 10-15 Fabricators
- Subcontracted Installers as needed
Growth Opportunities
- Increase market share
- Expand facility and labor force to be able to take on more work
Valuation
Funding Example
Funding Details
Business:
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
Loan Payments
| Monthly Payment to Bank: | $ |
| Yearly Payment to Bank: | $ |
| Monthly Payment to Seller: | $ |
| Yearly Payment to Seller: | $ |
| Total Monthly Debt Service: | $ |
| Total Yearly Debt Service: | $ |
Conclusions
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
|
Cash Flow: 2020 Cash Flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 2020 Cash Flow |
$ |
| Annual Debt Service: | -$ |
| NOI: |
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
| Down Payment: | $ |
| NOI: | |
| ROI: | % |
Attachments
| Document Title / Description |
|---|
This folder is empty.
Email
Print
Already have an account? Log in here.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857