Georgia Wood Door Manufacturer + Importer
Superb Reputation, Expert Product Knowledge & 60% Gross Margins
The company is a manufacturer and importer of interior and exterior wood doors, located in Georgia. Established in 2015, the company has built a loyal customer base through its excellent reputation for high quality service, on-time delivery, quick response to quotes, customer commitment, and expert product knowledge.
Through the owner's extensive experience in various aspects of the custom millworks market, the company has gone through trial and error of various product offerings, now capitalizing on its reputation for high end, high quality, counter-cyclical work in the affluent custom build segment of the millwork industry. They offer two product lines: custom-designed, individualized wood exterior and interior entry systems and door units (manufactured in-house), and a line of Mahogany standard doors and door frame components imported from Indonesia. The company is also one of only three companies that offer environmentally friendly wood doors.
Leveraging its one-step distribution model to provide retailers, distributors, and manufacturing dealers with the highest quality wood products and processing services, for them to best serve high end customers, the company has the potential to continue expanding its customer base at high levels in a growing industry. The company also deals with over 40 suppliers, with no supplier representing more than 20% of annual purchases and all vendor relationships are transferable after the successful sale of the business.
Repeat clients are responsible for generating most of the company's revenue, which has translated into strong financial performance over the last four years. Additionally, the firm has introduced a highly profitable line of Mahogany standard doors and frame components, imported from Indonesia, which is expected to add approximately 25% to 30% to the company's revenue in 2020.
Purchase Considerations
- Strong track record for high-quality production of custom doors and windows with an excellent reputation for customer service and product knowledge.
- Loyal customer base, which includes noteworthy clients such as Home Depot, Lowes, 84 Lumber, Builders First Source, and BMC.
- Most of the Company's revenue is steady and received from repeat customers. The custom door business is aimed at affluent individuals who typically continue their construction and renovation plans irrespective of the economic conditions. Based on historical experience with the 2008 recession, the owner estimates that most of the custom door division sales should remain stable during a downturn.
- Growth in total revenue, net income, and seller's discretionary cash flow by 51%, 155%, and 184%, respectively, over the last four years.
- Superior gross margins of 61-66% compared to 28-32% industry averages, which can be further improved by streamlining and automating several manual tasks.
- Highly dedicated and experienced team.
- One of the few companies currently offering products made of the environmentally friendly and durable Accoya wood doors, which is a viable substitute for fiberglass and steel doors/windows.
- Broad range of imported doors, which are expected to add approximately 25% to 30% to the Company's revenue in 2020.
- While the company's current equipment is well tailored to making custom, exceptional doors, there is an opportunity to make the same quality with less labor through enhanced automation.
- Option to relocate and operate the business from anywhere in the United States, however, if production stays in the current facility, revenue can be doubled without requiring a move or expansion.
- Great opportunity to bring down expenses through machinery and automation of tasks that are currently done manually, such as door sanding.
Having general knowledge of building material and the construction industry will be an asset to the new ownership, however, the seller is willing to stay on as a part-time consultant or in a sales capacity to assist the new owner in the growth of the company. The excellent brand equity should ensure continued sales growth and customer loyalty under the leadership of a new owner.
The company is for sale for $1,900,000.
Negotiable