Closet and Room Organizer Business Opportunity – SOLD

Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1091318


It has been a great 32 year run for the founder-owner-seller of this successful West Michigan design and build business which specializes in maximizing space in and offering attractively designed installations for closets, basements, garages, laundry rooms and the like. The seller is now at retirement age and looks forward to transitioning his business to only its second owner-operator.

The business operates out of an attractive 4,000 square foot facility which efficiently combines showroom, offices, a shop, and warehousing area. The facility, conveniently located just minutes from a major highway, is owned by the seller who will lease the space for $24,000 annually, a very attractive 3.0% of revenues.

This company has an outstanding business model based on purchasing inventory from a major supplier of prefabricated laminated wood veneer components. The business maintains a regionally exclusive relationship with this key supplier. As a result the company has no need for either specialized woodworking equipment or expensive skilled woodworkers. The company has five full-time, well-paid, non-union employees involved in sales, fabricating, installation and clerical functions.

The business has a four year weighted average of revenues exceeding $700,000. The past 18 months the business has had annualized revenues of nearly $800,000. Over that same 18 month period, annualized SDE (seller’s discretionary earnings – the historical normalized cash flow available to pay an owner-operator and service debt) has been an impressive $160,000. The business is being offered for $366,000, a favorable 2.3x multiple of SDE. The sale price includes (a) all fixed assets (including three vans) with a combined asset value of $75,000; (b) $25,000 of inventory; and (c) the goodwill of the business. The seller contemplates an asset sale in which he retains cash and A/R while retiring all liabilities. The seller plans to offer a high five figure seller note to a qualified buyer.

As part of the purchase price, the seller will offer both transition training and review of a number of approaches for rapidly growing the business. For more information on this value priced, cash flowing business, please contact Mike Greengard (


Location(s): West Michigan

Asking Price: 366,000
Cash Flow: 160,000
Gross: 800,000
Inventory: 25,000

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