MIDWEST WOOD FURNITURE COMPONENT SUPPLIER
This Company carries on the historical Midwest tradition of crafting quality wooden furniture. It provides solid wood and plywood furniture components, subassemblies and frames for a variety of long-standing customers, who finish and upholster final products. The Company has distinguished itself by the quality and unique craftsmanship of its work. Ownership has invested in tooling and machinery for a skilled workforce to provide new products as demanded by customers. A modern manufacturing facility is included in the sale. The current owner is actively involved in operations but has key managers who oversee each area of operations. This purchase is an excellent opportunity for a new hands-on owner or for a company to gain vertical integration with a high-quality woodworking division.
Expanded Marketing – The Company currently does limited marketing, with sales primarily to long-time clients and new customers reached through word of mouth or internet connections. Investment in marketing and sales personnel could generate significant new sales.
Expanded Manufacturing – The Company currently operates at full capacity on a single shift. Equipment and facilities could support additional production shifts to expand production with minimal capital outlay.
Stabilizing Woodworking Market – Although the U.S. woodworking industry has seen general decline in the past, it appears to have stabilized with growth opportunities on the horizon. At the same time, barriers to entry for new competitors include high equipment costs and a finite customer base, providing sales security for this existing manufacturer.
Domestic Expertise and Quality – Import of high-quality wood furniture is very limited as customers seek the reduced lead time and quick response manufacturing from domestic providers such as this Company. Avoiding import tariffs, coordinating design and engineering changes, reducing finished goods inventory, and ease of transportation are but just a few of the benefits of U.S. manufacturing.
High-Tech Equipment – The Company has invested in modern, specialized equipment to produce high quality, unique products, giving it an advantage over competitors.
Experienced Workforce – The Company has a strong team of employees, many with long tenures with the Company, who have skills that are not readily available in the market.
2018 Revenue: $2,130,000
2018 Adjusted EBITDA: $72,000
Real Estate is valued at $3,100,000