Does anyone have experience in custom kitchen cabinet manufacturing?

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December 24, 2024

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Tiburon, CA, USA

I'm seriously considering purchasing a custom kitchen cabinet manufacturer. The fundamentals seem solid. ~$3.6M Revenue and 22% SDE. I'd love to connect with anyone with relevant industry experience that can help me evaluate the opportunity.

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Reply by a searcher
from Massachusetts Institute of Technology in Denver, CO, USA
Jens - We acquired a small custom kitchen cabinet in early###-###-#### It wasn’t a good investment for a few reasons. Your customer is the dealer/designer (which is happy to throw you under the bus to save face with the end customer anytime it can). Anythings that is too custom is hard to scale due the complexity of each kitchen. Also, high end customer expect a perfect product. So make sure the company has great quality controls. When people pay $100k kitchen cabinets, they expect a perfect product. Finding a strong labor force is not that easy.
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Reply by a searcher
from University of British Columbia in Vancouver, BC, Canada
Hi Jens, I work with a kitchen cabinet manufacturing portfolio company. I'd suggest looking at the housing starts and housing completions data in the region for the past 5 years and see how the trend is playing out. Over all it is a good business to acquire
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