Highly profitable, custom furniture manufacturing in SF Bay Area

This well-established company is well known for finely crafted, truly custom indoor and outdoor furniture and upholstered goods, hand-tailored to exact specifications for luxury homes, restaurants, hotels, and corporate customers. The Company was mostly unscathed by COVID-19 and now is experiencing unprecedented sales and profits. Revenues for 2021 were $2,547,000, compared to a norm of about $1,600,000 for 2018 – 2020. Profits (Seller’s Discretionary Earnings) for 2021 were approximately $852,000, compared to an average in recent years of about $350,000. And results for the first quarter of 2022 show no signs of a slowdown, with sales of about $925,000. The Seller credits a strong rebound in the economy that has especially benefited household retailers as people stay home more and invest in the décor and comfort of their homes. The Company does almost no advertising and only sporadic marketing because business comes in the door primarily via longstanding relationships with architects and interior designers. Another strength of the Company is its crew of nine highly skilled artisans, many of whom are cross trained in all the steps involved in furniture fabricating and upholstery. Four of these employees have been with the Company for 25 years or more, and the employees have more than 130 years of combined experience. The Company also benefits from an Office Manager with more than 20 years of experience serving as a liaison between the designers and the shop floor. To help establish the asking price, the Company hired GCF Valuation, the leading provider of business valuations for the Small Business Administration. GCF estimated the Fair Market Value of the 100% asset interest of the Company, as of July 31, 2021, to be $1,689,000. The appraiser considered comparable sales but his conclusion was based primarily on the Company’s past and projected income. Based on this appraisal, a qualified Buyer can reasonably expect to secure SBA financing for up to 90 percent of the agreed upon purchase price. Location: California Year Established: 1956 Number of Employees: 10 Real Estate: Leased Building Sq. Ft.: 7,000 Rent: $11,025.00 Per Month Lease Expiration: 8/31/2028 Facilities: The business occupies a commercial space consisting of a showroom and a large manufacturing shop. Market Outlook/ Competition: While there are a myriad of furniture reupholstery shops in the Company's market area, when it comes to manufacturing new, custom furniture--the Company's bread and butter--there is very little local competition. The Company serves highly affluent customers who demand a very unique product available only from the Company and a few select others. The Company has one local, direct competitor that also performs high-end, made-to-order, custom upholstery. Growth & Expansion: According to the owners, the Company has the shop floor capacity to do considerably more hospitality and commercial work. The Company could also add a new profit center by delivering the furniture it manufactures.