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Description

Profits in RTA Cabinetry/Flooring Building Quickly!
Los Angeles, CA (Los Angeles County) – Expandable, Not Easily Relocatable
Seller Financing May Be Available!
Zip Code: 90040

  • Asking Price: $4,000,000
  • Cash Flow: $408,971
  • Gross Revenue: $263,000
  • EBITDA: $409,000
  • FF&E: $270,000
  • Inventory: $1,500,000
  • Established: 2016
  • Employees: 23

Business Description:

The explosive growth of this ready-to-install cabinetry and flooring distribution Company is the result of prioritizing a multi-faceted marketing plan that has attracted customers at the wholesale and retail level. In combination with quality products offered at great prices and backed by superior customer support, revenue has skyrocketed.

Detailed Information: This wholesale distribution business specializes in supplying high-quality wood cabinetry, SPC & WPC flooring, and complimentary fixtures at excellent prices backed with exceptional service.

At the heart of the Company are two partners who launched the Company with a strong vendor network, a large customer base, and years of corporate experience. The result is a Company that has grown into a $5 Million-plus revenue-producing and profitable business in just 3 years.

The partners analyzing the market and original design manufacturers (ODMs) not with the singular goal of importing, but to develop their own cabinetry and flooring brands. They visited more than a dozen Asian factories to find manufacturers who were able to provide both the quality demanded by the marketplace; at a price point appealing to customers that also provided the best profit margins as well. Those products are then supported by a network of distributors and dealers.

Although many competitors struggle with marketing and self-promotion, these executives boldly jumped onto multiple marketing platforms to launch and create demand for their brands and it has been quite successful and will continue to grow as the company and product names become more recognizable.

  • Facilities: The primary location is a 30,000 square foot warehouse and distribution center and three retail locations. Three secondary retail locations help reach a wide variety of consumers. Together, these operations created an internalized distribution system, enhanced its logistics schedule, and increased access to products and services.
  • Competition: Growth & Expansion: As more retail locations open, it would be wise to establish another central warehouse location to better serve contractors and dealers farther away from the current headquarters. There is much potential to open new retail locations in the San Fernando Valley, in the greater San Diego area and in San Bernardino County where new construction is booming.
  • Financing: Under the right terms and conditions to well-qualified buyers
  • Support & Training: 4 weeks at 20 hours per week.
  • Reason for Selling: To position and facilitate the company and brands for long term growth.

Industry Overview, Marketplace, and Trends: Due to its diversity, the company’s operations fall under several categories and sub-categories of industry. Not all will be discussed or presented here. The primary branches of industry include the Wholesale Sector, the Retail Sector, Lumber and Wood Product Manufacturing, and Furniture Manufacturing. Branches of these categories include Building Materials Dealers, Home Centers & Hardware Stores, and Cabinet and Vanity Manufacturing. The latter only being reviewed in this report.

Bright Outlook

One of the key factors to success in the Kitchen & Bath Industry is to have a diverse range of clients. The partners understood this early; as a primary importer of custom-designed products with brand value, the business plan accounted for and created strategies to serve several types of customers in this industry. These customers include, but not limited to construction contractors, carpenters, wholesale furniture stores, home improvement stores, architects, interior designers, realtors, hotels, property management groups, and even end-consumers.

This diverse range of client types provides financial consistency due to the ability to slightly shift the target audience based on seasonal and other marketplace trends. Although the Business actively pursues dealers and large project contractors, however anyone with a remodeling project large or small is a potential customer.

Currently, this company is working with 300 active customers, including dealers. Dealers typically place orders between two and ten times a month. At the moment, most clients are based in the greater Los Angeles area. Although not a lot of business comes from out of state, they are prepared for their market to grow.

The business does tend to be seasonal, with the first quarter of the year being slow (allowing for sales prep and trade show participation) but leads into peak season that mid to late April and lasts for six months. The 4th quarter is typically the slowest time of year.

The customer base has grown considerably since opening and the partners are actively working to increase the number of customers and the average size of the order.

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Pronova Partners

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