Business Overview
About the Company
This successful Canadian Furniture Design / Manufacturing / Assembly company was founded in 1995 and remains family owned and operated. It has succeeded by building a reputation for high quality, custom products that are built to order with minimal lead times using a significant component inventory. The business has two separate legal entities which operate under one roof and share certain operating expenses. The customer profile for each is quite unique without any significant dependence on any one customer sector. These include institutional clients, hotels, restaurants, health care facilities and many more.
A significant amount of land and production facilities valued at $40 Million are also available but priced separately from this listing. The operating companies are valued and listed at $15 Million excluding all Inventory over $1,000,000 and surplus Net Working Capital. The balance is available via an increase to the selling price. The business is being sold on a cash free / debt free basis.
Products are assembled and customized from components purchased in Europe or produced in the factory. The consolidated business has historically imported over 4 containers a month from 6 different suppliers. The businesses use top quality materials, state-of-the-art hydraulic presses and proprietary paint and stain processes with multiple ovens to complete production. A variety of fabrics are also utilized by the highly skilled work force to produce high quality, environmentally friendly, custom furniture.
One business unit has migrated from producing furniture for Canada’s largest casual restaurant chains to supplying furniture for large healthcare chains, hjgh end hotels and other commercial clients. It offers a wide variety of custom solutions utilizing a variety of fabrics and finishes. The other business produces custom furniture for high end hotels and private restaurants as well as end-users.
In the current fiscal year 2023, the consolidated business is anticipated to exceed pre-pandemic sales volumes and exceed $22 Million in revenue generating more than $3.275 Million in normalized cash flow. Gross Profit Margins will continue to increase as they did in FY2022 due to freight cost recovery and targeting and evolution of a more profitable institutional customer base and higher end products. Production equipment with a replacement cost of over $2 Million is included with the sale.
The businesses will be led by 2 family members who will stay on for a prolonged transition to the successful purchaser. This will ensure that the critical success factors of Quality, Service and Price are retained while the success and growth continues.
