Colorado Lumber and Wood Products Manufacturers For Sale

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Denver, Quality Door, Frame & Hardware co, Excellent Reputation85% Recurring Rev, Long Term Customers, Big Growth Potential
$345,000 Cash Flow: $143,000 Seller Financing
Denver, Quality Door, Frame & Hardware co, Excellent Reputation85% Recurring Rev, Long Term Customers, Big Growth Potential

Denver, CO

This is a 15 year old company that sells wood and steel doors, frames, and hardware. They purchase the doors and frame parts and then assemble, fabricate, machine and weld the materials into door and frame units that are ordered by their customers. They also sell a multitude of door hardware items, vision lites, hinges, thresholds, weather strip and any products that are needed for doors and frames. The company sells to both the wholesale and retail trade. The customer base is 85% commercial and 15% residential. The trailing 12 months earnings through March 31, 2018 were $143,616 on sales of $1,539,422. The earnings for 2017 were 77,967 on sales of 1,298,359. In 2015 one of the owners who was also the main sales person had a heart attack and could not return full time until March of 2017. The revenues and bottom line suffered over that time frame because of this. He is back and the pipeline is full again. Keep in mind that the company did 1.5M in revenues in 2014 with 124K on the bottom line and the owner believes their growth would have continued if the main salesperson had not gotten sick. In other words, this company is now selling below the current value of its assets at a price that is less than what it should be selling for based on the temporary drop in both revenues and earnings. The company’s revenues come from long term customers that pay in a very timely manner. They have approximately 85% in recurring revenue from long term customers. They currently have a full pipeline of signed work again. In fact, one owner states in the video interview available after you complete and submit the non-disclosure agreement above that he could show a new owner how to take this company to $15M in sales(10 times the current revenues). You must see the video interview in the data room above to fully understand how good this opportunity is. They provide both doors and frames and the hardware used with the doors. The hardware market has been mostly controlled by a company that has put them at a disadvantage in the past. If the parent corporation of their main steel door and frame manufacturer is successful in purchasing a hardware entity, then they will be able to provide hardware at a more profitable and competitive price. That change would significantly help them improve their revenue and profit margin moving forward. You must see the video interview to fully understand how positive this will be for the future of this company. The sellers state several times that they could be much larger if they were trying to grow it beyond their current customers especially when they have access to competitive pricing for the hardware most doors require. The company is certified and approved by Intertek Testing Services for machining and labeling fire doors. This certification can be easily transferred to a new owner. The sales price is $345K with the Seller willing to carry $45K. The sales price of $345K is actually less than the total value of the current assets which are worth a total of 425K. This total includes 175K in current value equipment with another 250K in inventory which includes work in process orders that are in various stages of completion and have not yet been invoiced. The inventory is being valued at cost, when in fact some of it is much more valuable in its finished or partially assembled and fabricated state. A buyer will benefit from all work that has already been performed on some items of inventory. There are 4 owners. One of them has been the lead salesperson but had a heart attack in 2015, another in 2016, and only got back to full time this spring but has been advised to retire for medical reasons. His absence has directly resulted in their drop in sales and why they are selling. The two active owners will assist with the transition and training and let you use their licenses until you get your licenses which they can help you with. Location: North Denver, CO Email jce@companybroker.com or call Jeff Chapman at 303-905-7607 to discuss the business ______________________________________________________________________________________ Brief Overview and Selling Points: The company buys wood and steel doors, frames and hardware from manufacturers or local distributors and assembles and fabricates to produce finished products. Their major suppliers are Mesker Door Company a division of Kaba-Dorma, Linden Door Company, Diamond Y and Timely Industries. They may soon have access to more hardware and better buying power thru Mesker which would be a game changer in a very positive and profitable way. Growth: The buyer could increase revenues dramatically by hiring additional salesmen, implementing an advertising and marketing program and by getting involved in social media. Also, hiring an Architectural Hardware Consultant, AHC, as a sales person would be a tremendous benefit. This would allow the company to bid large commercial and industrial jobs that they currently cannot touch. Revenues of 10M to 15M would be possible. One of the owners states in the video that they could be much larger if they were trying to grow the business beyond their current customer base. They also have pointed out that the hardware market has been mostly controlled by one very large corporation, who they are not able to purchase from. They currently purchase steel doors and frames from Mesker Door Company whose parent company is Kaba-Dorma. It is known in the industry that Kaba-Dorma is looking to purchase a large hardware entity. When that purchase is completed, it will be a tremendous advantage for them to be competitive in large commercial or industrial projects. They are looking at expanding the wholesale side of the business. The company is currently owned by four owners, two of whom are still active in the day-to-day management and operation of the company. The CEO handles the purchasing and oversees the shop employees. Another owner is the President and is in charge of sales. He was the main sales person until his medical issues which started in 2015. There are currently eight excellent and extremely reliable employees. Four of them have been with the company longer than 6 years. All of the employees are very skilled in their respective positions. There are three 100% commission based sales people. Employees are able to participate in the company medical insurance plan after completing 90 days of employment. The company pays for 50% of the employee’s premium. There are currently five employees participating in this plan. The 2 working partners are retiring and will help in transition. The company is an “S Corp” and will be a stock sale. The company has a great reputation with excellent customer service. It has a stellar worker’s safety history and has never had a legal issue. The company enjoys an extremely low workman’s comp rate due to only one small claim over the last five years. Marketing: "We have no outside advertising or salespeople for new customers”. The work comes to us and we periodically check in with all of our customers. The new buyer can grow this company by adding advertising, adding an outside AHC salesperson, and additional sales people. The sellers will stay on as long as the buyer would like them to. They will ensure a comfortable transition of employee, vendor, and customer relationships. The seller has a wealth of knowledge and many ideas to grow the business. In short, they are committed to help the new owner take the business to the next level. The company is centrally located and close to several major freeways. It is leasing 14,000 sq. ft. of a 42,540 sq. ft. commercial building with plenty of parking. It has a large loading dock, upgraded electrical and large offices with room for growth. The lease rate is 5,000 per month with CAMS adjusted annually, and an option for renewal. Plus, Colorado is the best State in the country to own a business. Colorado is #1 for Economic Growth in the US says US News and World Report. See article here: https://www.usnews.com/news/best-states/rankings This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in June of 2015. Check out the articles in these links also: http://www.metrodenver.org/research-reports/economic-forecasts/2017-economic-forecast/ and rated Denver #1 for leading locations for economic strength indicators and eighth for both workforce and recession-busting attributes: http://www.imfromdenver.com/denver-no-1-on-u-s-news-best-places-to-live-list/?utm_campaign=shareaholic&utm_medium=facebook&utm_source=socialnetwork http://www.bizjournals.com/denver/news/2015/07/15/denver-rated-no-1-in-u-s-for-economic-success-3.html The Denver-Aurora-Broomfield metro area was rated first among the 375 metros. Here is Area Development's top 10 U.S. "Leading Locations" for 2015: 1. Denver. 2. Houston. 3. Grand Rapids, Michigan. 4. Greeley. 5. San Francisco. 6. San Jose. 7. Seattle. 8. Columbus. 9. Boulder. 10. Austin. ______________________________________________________________________________________ Financial Information: Asking: 345,000 with a 300,000 down payment as part of the sales price. They will keep their cash and AR/AP. The business will transfer debt free. Please Email or Call for Information: jce@companybroker.com or call Jeff Chapman any time at 303-905-7607 to discuss your interest in this offering. If you are NOT interested in this business for sale, but you refer someone to us who buys it, we will immediately pay you a referral fee of $2,000. Please send us anyone who you think would be interested in this offering. Sincerely, Jeff Chapman Eisnaugle Company Broker Group, LLC. 1240 S Emerson St Denver, CO 80210 Direct 303-905-7607 Office 303-284-7025 Fax 720-524-6482 jce@companybroker.com This is prepared by Company Broker Group 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. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you have received this e-mail message in error, please reply to the sender and delete it from your computer. 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. Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

5Artisan Wood Product Manufacturer & Commercial Cabinetry ContractorGrowing Demand in Expanding Specialty Markets
$1,900,000 Cash Flow: $148,389
Artisan Wood Product Manufacturer & Commercial Cabinetry ContractorGrowing Demand in Expanding Specialty Markets

Mancos, CO

The firm’s products have established loyal followings in a number of niche markets that could be expanded significantly with the implementation of a strategic marketing plan and the addition of a full-time sales force. The owners of SRWD are nearing retirement and are seeking a buyer with the resources, experience and capital to act on the opportunity to expand this business. Purchase Options: Details on request to serious parties. Owners are willing to remain in place during a transition period to provide training for new owners and employees.

3Established Countertop BusinessBest Tops
$400,000 Cash Flow: $197,375
Established Countertop BusinessBest Tops

Grand Junction, CO

Established, successful countertop manufacturing business in Grand Junction, CO. Sprinkler system in shop and office, all equipment to run business included. This represents a rare opportunity o buy a successful local business just as the economy is improving. Property owner will lease buildings to new business owner.

Sawmill and Pallet ManufacturerSawmill and Pallet Manufacturer
$1,800,000 Cash Flow: $218,109 Seller Financing
Sawmill and Pallet ManufacturerSawmill and Pallet Manufacturer

CO

Third generation saw mill that was originally built to cut construction lumber, posts and long poles. In 2007, the owners purchased a pallet nailer to make use of short lumber and provide pallets for a local manufacturer. The pallet side of the business began to grow and now pallets are approximately 90% of the production. The mill continues to custom cut larger timbers and cants for local builders and has the only mill in the area capable of cutting timbers up to 26' in length. The owners of the business have developed a siding product called Chink-A-Log which can be produced with a third mill referred to as the planer mill.

Profitable Building Materials Supplier
$1,090,000 Cash Flow: $300,000 Seller Financing
Profitable Building Materials Supplier

Montrose, CO

This is a business that processes and sells reclaimed lumber products for a variety of uses. With a nearly 20 year history, supplier and customer relationships are long term. Reclaimed lumber is a premium product widely used in high-end custom homes in resort markets. Telluride, Aspen and Crested Butte are the closest, but this business has customers who are custom home builders working in Jackson, Big Sky, Yellowstone Club, Steamboat Springs, Summit County, Durango and Vail and regularly ships to high-end home markets in Texas and elsewhere. One of the challenges of working with reclaimed lumber has been to find a method to standardize the grading and quality of the product to minimize waste for the contractor and justify premium prices. This business has a proprietary grading system which suppliers and contractors use and are happy with as well as in-house kiln drying and milling. This niche market is competition resistant in that the typical lumber yard selling commercially available standard product cannot effectively stock and supply this product despite the demand. This not only insulates the business from typical local competitive pressures, it also expands the available market radius to something like 1000 miles rather than the 50 miles a typical lumber yard services. The 3.5 acre property and 11,000+ ft2 facilities are owned by the seller. A new lease on mutually agreeable terms will be offered to the buyer. Seller’s preference is to keep the property but he will consider offers for the property for a sale simultaneous with the sale of the business. This property location would be ideal for expansion into other building materials should a buyer wish to augment the reclaimed lumber business with a full-line selection of lumber. Please Note: Potential buyers will be asked to complete buyer registration, sign a non-disclosure, interview with broker and provide evidence of the means to complete a transaction of this size before additional confidential information will be provided.

Quality Stair Manufacturer
$475,000 Cash Flow: $145,510
Quality Stair Manufacturer

Colorado Springs, CO

This long established Front Range manufacturing business provides quality stairs built to the customer’s specifications. Customers include home builders both custom, spec and tract homes as well as remodelers. Finished stairs are picked up by the customers or delivered by them to the site location. They do have a large regional building materials reseller that they furnish products for through their sales efforts. The current owners are only the second owner/operators of this 30 plus year old business. Operated from an approximately 3,500 square foot leased facility they pride themselves in producing a quality consistent product through the use of well-maintained equipment operated by dedicated professionals.

Manufactures Wood Moldings, Paneling and Flooring
Manufactures Wood Moldings, Paneling and Flooring

CO

This 35+ year-old Company is a well-established manufacturer of wood moldings, paneling, and flooring. The Company produces a wide variety of moldings in a range of sizes. The Company produces molding for base boards, crown moldings, applied moldings, handrails, guard rails, as well as tongue and groove products. The Company works exclusively with customers in four counties close to the Company’s headquarters. The Company is in the midst of an increasing revenue trend. The Company primarily serves the residential market (95% of revenue) but occasionally completes projects for commercial accounts (5%). The Company operates out of a strategic location that includes three buildings and 9,000 square feet of built out space. The Company has a knowledgeable staff with expertise in the industry. The Company is well-positioned within its market and is known to have excellent supplier relationships, effective quality control, a high level of technical competence, and a superior reputation. As a result, the Company enjoys a high level of repeat business. In addition, management believes the Company has excellent growth opportunities going forward.


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