How would you value a timberframe/SIP manufactuerer with $1.5M EBITDA?

April 27, 2022

by a searcher in Loudon, NH, USA

I just saw this listing come on the market https://images.bizbuysell.com/shared/listings/195/###-###-#### /3c070447-5b09-4e3d-b840-60e7006eacdf.pdf and believe it's here in New England. I like the nature of the business but do not have a formal background in this space so was curious if anyone has experience with this space, either from an operational or acquisition point of view. Thanks.

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Reply by a searcher
from Pennsylvania State University in Fort Lauderdale, FL, USA

I used to be really into SIP constructions while SIPs are great they are often very custom to the company making them requiring training before being able to install them. Architect and Structural engineers tend to stick with what they know. So growing a company like that will be difficult because you really would have to be able able to do a lot yourself or make sure to have great partners to help you with engineering. You would need a solid understanding of construction before getting into this. Happy to discuss more about it. https://www.sips.org/ .

Reply by a searcher
from London Business School in Johannesburg, South Africa

I've been tangentially involved with a couple of these businesses internationally. The sales pitch is always the same - on paper SIPs are a fantastic technology and the potential market is huge. In practice, getting people in the construction industry to actually use them proves extremely difficult. Construction as an industry is very conservative, both the construction companies themselves as well as the customers. Even if SIPs are great on paper and you can convince companies to use them in their design, people often don't want to live in "prefabricated" homes.

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