Top End Furniture Design & Mfg Co, Specializes in Office & Hospitality

Denver, CO (Denver County)

Seller Financing Available
Top End Furniture Design & Mfg Co, Specializes in Office & Hospitality
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Asking Price: Get Financing: $800,000

Cash Flow: $321,000

Gross Revenue: $1,276,921

EBITDA: $321,000

FF&E: $91,000

Inventory: $9,000

Lease Rate: $3,600 /SF/Month

Established: 2007

Top End Furniture Design & Mfg Co, Specializes in Office & Hospitality

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Business Description

Big Equity Building & Branding, Growing Fast, Several Streams of Income

High End Furniture Manufacturing Co

Huge Equity Building Potential

Great Branding Opportunity

Made in the USA

Selling for less than 2 1/2 times the trailing 12 months earnings of 321K thru July 31 2018 from revenues of 1,276,921.

This business currently has a large and increasing amount of recurring revenues with a record amount of contracted work. This company is on pace to do 1.55M in revenue this year which should result in approximately 410K in earnings. They are growing at a pace of more than 50% and currently have a gross profit margin of 40% and a bottom line of more than 20%. More than doubled revenue-per-square-foot in 2018.

This company designs and manufactures high end furniture specializing in the office and hospitality spaces. In 2011, they asked the question “how much good can we create from a really bad situation?” with regard to Colorado’s 4 million acres of dead pine trees. They started with the mission of repurposing as many of these trees as possible into high-quality, residential furniture. To date, they have reclaimed over 1 million feet of this dead pine having produced thousands of pieces of furniture. They won a national entrepreneurship competition by GQ Magazine and Ketel One Vodka with that business mission, beating over 30k other entries. They were chosen based on the quality of their product and their commitment to environmental sustainability. They have been featured in GQ, Wall St. Journal, Martha Stewart Living, Denver Post, LUXE, 5280 and 5280 Home, VICE. Additionally, they have a great start to a new National Brand of Furniture having recently completed the first phase of their go-to-market strategy. This new collection is based on a simple design aesthetic that allows the unique character of other reclaimed and urban woods to become the focal point. Consumers are wanting to buy from businesses with a story and value set that aligns with their own, and this company has just that. This is clearly shown in their substantial recent growth, consistent repeat customers, and 5-star rating on Google.

In the past 5 years, the boutique hotel and workspace markets have grown considerably. Companies are wanting a more unique and tailored product to best meet their customers’ needs. In 2017, The company launched a very successful collection of custom work, meeting, and bistro furniture to meet this growing demand.

They have several streams of income including direct to consumer furniture, B-to-B contract through 9 dealerships for their line of custom tables, custom hospitality, wholesale, has an exclusive furniture collection at a major Office Furniture store, and created consumer goods for other for other well-known companies.

They are 5-star rated on Google and have won several awards. The Sales price of 800K is less than 2 ½ times the trailing 12 months earnings. This business is 9 years old and is incorporated as an S Corp.

No sales or construction experience is necessary. There is a long term production manager and team who manage all manufacturing from start to finish. This will allow the new owner to focus on growing the business.

Location: Denver

If you believe you might have an interest in this business, please submit the non disclosure in the link above in the first paragraph so I can send you the sales package with both financials and a video interview of the owner in the data room.

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Brief Overview and Selling Points:

Multiple revenue streams: Direct-to-consumer furniture through website (currently all word-of-mouth, HUGE opportunity if buyer wants to spend a little on marketing), Contract B-to B furniture through 9 dealerships, Custom hospitality furniture both direct and through two procurement company relationships, Wholesale promotional goods, both manufactured and brokered. They make both wood and brass products. They also have an exclusive executive furniture collection at a well-known furniture store. About to begin b-to-b outreach to hospitality procurement groups within the month to go after the medium-sized boutique hotel market: Big manufacturers can’t produce small projects profitably, small companies can’t produce quickly enough. This company is able to offer full custom, yet big and efficient enough to produce hundreds of pieces in weeks not months.

The owner has addressed a problem in the workspace industry: custom office furniture is (1) very expensive, (2) takes months to build, and (3) are often made at sea-level and crack once delivered to altitude.

Their new Contract program solves this problem:
- All sales through office furniture dealerships, currently 9, each of whom offering at least $3+m lifetime values and recurring revenue
- In the three months since launching, they’ve already sold 79k
- Product collection designed to keystone through dealers, offering attractive margins on their end
- Additionally, this collection was designed to fix a historically weak 4th and 1st quarters from consumer spending drying up in furniture space. Hotels and workspaces are furnished 12 months of the year. This gives them sales relationships that can be leveraged to increase sales during weak periods.

Late last year, the owner changed their manufacturing and other methods to be as efficient as possible and increase profitability. He initiated just-in-time manufacturing, never-carry inventory, only three in production with the help of advanced machinery and processes. Through the recent acquisition of new and more automated equipment, their production lead times have reduced significantly, and the bottom line reflects it.

Great Employees: Veteran Production Manager of three years handles all production with his team. He knows the product line and SOPs inside and out. His team is comprised of two craftsman approaching 1 year. They have an office guru to handle inside sales, bookkeeping, payroll, production and delivery scheduling, and all consumer experience. The owner currently handles outside sales. All contract dealerships and leads set up in Salesforce to make transfer of account ownership to an Account Executive or new owner very simple. Production team handles all construction, finishing, delivery. No installations. From day one, the company was designed and built to operate autonomously without the owner. The owner currently spends his time not building furniture, but identifying gaps in the market and creating profitable products to fill them. In fact, he was planning on moving to his cabin in the mountains and work remotely. This is how well the business operates on its own.

This business has a large customer, a new Hotel chain, that choose them for sustainability because they use dead or throw away wood to create beautiful and simple furniture which fits their theme perfectly. The owner states “We produced 1200 pieces of furniture in 5 months, building a very strong and reliable relationship with the ownership group.” They created the head board, 2 night stands, refrigeration cabinet, desk, and TV cabinet for each of the 138 guest rooms. After they started those, the hotel also hired them to do the cabinetry for the entire hotel, the retail displays, and tables for the cafe, as well as all of the meeting tables for the conference center. This hotel has 20 locations planned over the next 5 years. They have their 2nd location purchased and planned already and they expect to hear from them soon.

Their reputation is growing nationally which means bigger projects and more profitability. Their current rent is up in March of 2019 but can easily be extended. They currently have 6,800 square feet but have to outsource veneer processing, all metal work, and laminating. The owner believes that the perfect plan would be to extend the lease by 2 years with automatic extensions going out as far as necessary and then take those 2 years to find and build out a 15,000 square foot space which would bring in house all of the manufacturing. This would allow higher margins, better control over meeting deadlines, and 100% quality control. What they are doing now is working but can be improved.

ZERO spent on traditional marketing. Before reaching out to the office furniture dealerships, they also had sample books made which you can see in the video after submitting the NDA in the link above, otherwise they do no marketing but they have a great social media presence, 19k Instagram followers . They are considering directing 1% of sales to basic online marketing (they don’t even have alt tags or basic SEO) for the beetle kill pine collection of residential furniture.

The company’s balance sheet current assets and debt which will be zeroed out (paid off) with the owner taking his residual cash at closing which makes this a debt free sale. The owner estimates that the market value of the equipment is 64,750 , the vehicle is 22,000, and all other assets are 10,980 Totaling 97,730. All of their equipment is in top notch condition as you can see in the video walkthrough in the sales package. They also have approximately 9,030 in inventory which is included in the sale.

The owners will help transition the business as available for as long as the new owner would like him to stay on for a reasonable salary.

This is a unique opportunity because of the size of its potential increase in value to a new owner. This company has huge equity and branding potential.

Denver's commercial real estate is very strong and many large companies are relocating and expanding into the area. They're furnishing their space with two different dealerships, both of whom have reached out to them for custom solutions.

Colorado is the best State in the country to own a business. Denver, the entire Front Range, and most of Colorado are among the fastest growing areas in the U.S. The macro story for construction and overall growth is extraordinary and has been this way for the past five decades. Even during the 2008-2011 recession, Denver fell, but it didn’t fall as hard as most of the U.S. and in the past 6 years has grown faster than almost every other major city in the U.S. Plus, people who move here never leave. Here are some recent articles supporting this. Colorado is #1 for Economic Growth in the US says US News and World Report. https://www.usnews.com/news/best-states/rankings Denver CBS4 News states Low Unemployment and great Job Growth in Colorado.http://denver.cbslocal.com/2017/02/28/colorado-economy-u-s-news-and-world-report/ The Denver Post says that the Colorado Economy is set for Continued Growth.http://www.denverpost.com/2016/12/05/colorado-economy-growth-2017/ US News and World Report states Colorado is attracting Skilled Workers that’s driving the State’s Economic Growth.https://www.usnews.com/news/best-states/articles/2017-02-28/attracting-young-skilled-workers-drives-a-states-economic-growth Denver and the Front Range have nationally recognized schools, museums, outdoor activities, theater, music, restaurants, etc.
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Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s). Thank you for your interest.

Thank you,
Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jeff@businessbrokercolorado.com
www.businessbrokercolorado.com

This is prepared by Business Broker Colorado, LLC and Company Broker Group, LLC being the managing broker with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Business Broker Colorado, LLC and Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
6,800
Lease Expiration:
N/A
Employees:
4
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
They currently have 6,800 square feet but have to outsource veneer processing, all metal work, and laminating. The owner believes that the perfect plan would be to extend the lease by 2 years with automatic extensions going out as far as necessary and then take those 2 years to find and build out a 15,000 square foot space which would bring in house all of the manufacturing. This would allow higher margins, better control over meeting deadlines, and 100% quality control. What they are doing now is working but can be improved.
Competition:
Late last year, the owner changed their manufacturing and other methods to be as efficient as possible and increase profitability. He initiated just-in-time manufacturing, never-carry inventory, only three in production with the help of advanced machinery and processes. Through the recent acquisition of new and more automated equipment, their production lead times have reduced significantly, and the bottom line reflects it.
Growth & Expansion:
Multiple revenue streams: Direct-to-consumer furniture through website (currently all word-of-mouth, HUGE opportunity if buyer wants to spend a little on marketing), Contract B-to B furniture through 9 dealerships, Custom hospitality furniture both direct and through two procurement company relationships, Wholesale promotional goods, both manufactured and brokered. They make both wood and brass products. They also have an exclusive executive furniture collection at a well-known furniture store. About to begin b-to-b outreach to hospitality procurement groups within the month to go after the medium-sized boutique hotel market: Big manufacturers can’t produce small projects profitably, small companies can’t produce quickly enough. This company is able to offer full custom, yet big and efficient enough to produce hundreds of pieces in weeks not months.
Financing:
10%
Support & Training:
The owners will help transition the business and will be available for as long as a new owner would like him to stay for a reasonable salary.
Reason for Selling:
Wants to be a home builder.
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman Eisnaugle

Business Broker Colorado

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