This opportunity is a diversified stone fabrication and installation business. This Company not only manufactures stone countertops but also holds a large inventory of thousands of slabs and offers installation services to customers in Illinois and surrounding states. Customers include both residential (kitchen and bathroom countertops) and commercial (multifamily residential, custom elevators & flooring, and other special use case stone). The company houses over 250 different colors in 6 different types of stones (granite, marble, onyx, limestone, travertine, and quartzite).
The Company was founded over 42 years ago by the current owner. The current owner is still involved in the Company, but very minimally. He often comes in one half-day a week to check in on everything, answer questions, sign checks, and maintain some established customer relationships. The owner’s son now leads the team and everyday business operations alongside another experienced employee.
The Company currently operates out of an 80,000+ square foot facility but the owner has sold this building. The current lease expires in June 2022 which means the new owner must move the operations either through the purchase or lease of a different facility. The current owner suggests that a 50,000 square foot space would be sufficient for manufacturing, office, and showroom. However, there would need to be adequate space outdoors to store excess slabs. A conservative estimated price to lease a building of sufficient size for Company operations is $3.00 to $5.00 per square foot annually.
Additional Information
Number of Employees: 19 (including Owner)
Year Established: 1980
Facilities: The Company currently operates out of an 80,000+ square foot facility with space for fabricating the stone slabs, an area for indoor storage and showroom, and an office space for management and design of the slabs. This facility has been sold and the new owners of the business will need to relocate within a reasonable timeframe after the lease expires in June. A 50,000 square foot facility would be more than sufficient to handle business operations.
Support/Training: The owner’s son currently runs the business and is willing to continue working in the business long-term.
Reasons for Selling: The owner would like to pursue retirement.
Investment Highlights
(1) Full-Service Company: The Company is involved in the entire process from designing, fabricating, and installing the slabs. The Company’s large inventory allows for large and small projects both residentially and commercially.
(2) Consistent Financial Performance: Over recent historical periods, the Company has routinely recorded steady revenues within the $5 to $5.5M range and consistent seller’s discretionary earnings (SDE) margins.
(3) Pandemic Resistance: During the COVID-19 Pandemic, the Company performed very well experiencing a negligible decline in revenue and an increase in SDE. The Company was deemed essential and did not shut down at all during the COVID-19 Pandemic, and the Company did not have to lay off any staff.
(4) Large Inventory: While new management gets familiar with the Company’s manufacturing process, there is already a large selection of slabs for customers to choose from. There are over 10,000 slabs in over 250 colors and 6 different types.
(5) Chance for new Owner(s) to choose the perfect facility: Because the current owner has sold the facility, new owners have the chance to move operations to a new location that suits the owners well. Additionally, because the old facility was larger than necessary it allows a more suitable and potentially cheaper facility to be purchased/leased.
Growth Opportunities
(1) Implementing Stronger Marketing Tactics: Currently, the company does not utilize many marketing techniques. New management could utilize Search Engine Optimization (SEO), Google AdWords, Facebook Ads, along with many other tactics to generate leads in the residential and commercial space.
(2) Expansion Into New Markets: The Company’s current inventory, machinery, and equipment would allow the Company to expand further to new markets throughout the country.
(3) Focus on Large Fabrication Projects: Large commercial projects offer stronger profitability; focusing marketing and biding efforts on these custom fabrication projects should offer large growth in profit margins and the Company’s bottom line.
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Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact info@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this stone fabrication business for sale!