Fabrication of Doors, Cabinets, and Lockers – No Installation

Business Summary:
A fabrication business that specializes in the manufacturing ofcabinet, louvre and locker doors for over 40 years. Theyprimarily operate as a business-to-business (B2B) company,with approximately 98% of their sales being made to otherbusinesses with a niche in health clubs and golf courses.They produce raw products, but do not engage in the designprocess. Instead, the B2B clients submit the design, which isthen brought to life through their manufacturing capabilities.This company does not install the doors, nor do they workwith the end user. The established team in place consists of aBookkeeper and 8 Fabrication Technicians. Additionally, theseller has agreed to a 1-year transition period in order toprovide a smooth transition. The assets included in thepurchase price have a replacement value of $1,880,240 andthe current backlog is at $203,428. This business is located inthe growing community of Montrose Colorado, which isroughly 45 minutes away from Grand Junction. The spaciousfacility is 14,298 square foot with ample room for expansion.Priced at $890,000, this business has established itself as areputable player in the door manufacturing industry. Thecurrent owner is selling this business in order to plan forretirement and has offered to carry 10% of the purchase pricein order to show vested interest in the continued success ofthe business. A 10% down payment of $89,000 returns$246,001 in the first year after debt payments! They do notengage in metalwork or plastics. Additionally, they do notprovide any hardware or finishing services. Theirmanufacturing process solely involves working with rawmaterials and does not require the use of chemicals or sprayfinishes.