SOLD – 10-Year Established Building Materials Dealer
“10-year established building material dealer that specializes in home improvement materials and supplies such as flooring, cabinets, doors, kitchen, bath fixtures, wall tile, lighting, hardware, tools, etc., in North Texas is now available for acquisition.
This business was established in 2011 by the current ownership at its present location. As the company continued to outgrow the space, it had to undergo facility expansions twice in 2013 and 2016.
This business occupies over 95,000 SF space of a warehouse building with ample parking lots surrounded by industrial areas, offices, and densely populated residential neighborhoods. The facility has the second floor, and the actual usable area, including both the first and second floors, is approximately 150,000 SF.
A majority of the customers consist of a variety of demographics such as individual homeowners, contractors, builders, investors, landlords, apartment complexes, real estate agents, remodeling companies, house flippers, interior designers, DIY (Do-It-Your) trendsetters, etc.
There are several other privately-held companies directly competing in the similar or same market in the market area, but this well-established residential building materials retailer has differentiated itself by focusing on providing customers with unique and quality products in large quantity.
Although some competitors are operating with multiple satellite locations, its decentralized operation increases its overhead, decreases profit margin, and limits inventory available on the floor in terms of selection and quantity. However, by having operated at its one centralized location since established, this home improvement store is well equipped to offer products in larger quantity and selection at a more competitive price than other competition.
The revenue of this company has been continuously growing since its inception, and it has increased significantly from 2019 to 2021 compared to relatively consistent from 2017 to 2018. The gross revenues of 2020 of this comp were just under $9MM and is now on track to penetrate $10MM mark in 2021.
This business has already achieved remarkable growth since its inception, but it still has tremendous growth potentials. The online presence of this business is rapidly expanding its footage, and given the current pace, its online sales are expected to increase by over 50% in 2021 compared to 2020.
Day-to-day operation is fully managed by strong management team comprising 1 operation manager and 1 general manager along with 5 department managers, while two owners are mainly focused on product purchasing.
This well-established high-volume home improvement retailer is looking for passionate entrepreneurs who can successfully take the legacy of this business to the next level.”