Cabinet Resurfacing/Refacing Diligence

by a searcher from Wheaton College Illinois

11 months ago

Does anyone have experience with cabinet resurfacing/refinishing?

I'm under LOI on a group that has been around for 13 years, does about $1.5mm-$1.9mm in revenue with about 25% margins.

Their service is basically high-quality cabinet refinishing (sanding down, even complete re-styling, and finishing with a high-quality coating). They're somewhere between buying all new cabinets (more expensive) and just paying a painter (lower quality). They also do new cabinet fronts. I like their position as not the most expensive option, but still high-quality (and hopefully a bit recession-resistant).

Their average job size is about $7500 and typically for homeowner kitchens.

Is anyone familiar with this industry? Does anyone have any thoughts or feedback?

0 likes
42 views
3 comments

searcher from University of Tennessee - Knoxville

Thanks again ^Searchfunder member‌. I agree with Brandon economic contractions are good times to own such business bc people start looking at money saving options. I also think 25% margin is slim. Not enough there to gain market share and pay yourself.

10 months ago | like reply | 0 likes

searcher

II'm active in this industry and even though the housing market is taking a hammering, you are right in that refinishing (in a professional way) is a DIY+ technique that can be done through savings accounts or a small pull on a home equity line. Industry aside 25% margins aren't the best. Happy to take a look, under NDA of course.

11 months ago | like reply | 2 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.