Cabinet Resurfacing/Refacing Diligence

by a searcher from Wheaton College Illinois

May 25,2023

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?

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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.

05/26/2023 | 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.

05/25/2023 | like reply | 2 likes

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