Full Line Lumber, Building Material, Hardware Store

Business Overview: This established Company successfully retails lumber, hardware, paint, power equipment, pool and plumbing supplies, propane, and garden and farm/landscape materials. The Company also rents out excavators, skids steers, chippers, scissor and boom lifts, and trailers, and offers an array of granite, mulch, sand, soil, stone, rock and rock base from its large attached yard. The Company has a strong contractor business. Its customers include homeowners (50%), builders (30%), plumbers (10%), landscapers (10%), and municipalities (5%). The Company is staffed with a team of 8 highly experienced and knowledgeable professionals in addition to the owners. The Company enjoys five-star reputation for quality and service across social media, receives 240-250 customers per day, and has a 75% rate of repeat business. No single customer accounted for more than 6% of revenue over the historical period. With over 15,000 SKU’s the Company has a great selection of items and competitive pricing comparable to big box hardware stores. It has the only lumberyard in the area. Investment Considerations: Strong Sales and Earnings Growth: Historical sales have grown consistently from $1,775,000 in 2017 to $2,099,000 in 2019, representing a CAGR of 8.8%. The Company’s EBIT also grew from $91,000 in 2017 to $216,000 in 2019, for a CAGR of 54.2%. EBIT represented 10.3% of sales in 2019. Outstanding Growth Opportunities: There exist several opportunities for the Company to significantly increase revenue and profit, namely: growth in products/services (i.e. dump truck delivery services of landscaping products), marketing & business development initiatives, and extending operating days. Location: Texas Real Estate: Owned