Stone Countertop Fabrication Company

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August 09, 2024

by a searcher from Grace College in Jacksonville, FL, USA

I’m curious if anyone has experience acquiring or going through due diligence on a stone countertop fabrication company. I don’t see or hear about companies like this and I’m wondering if I’ve stumbled on a great niche business or if I’m missing something. Financials look solid and it’s available at about 3X SDE. Any input would be appreciated.

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Reply by a searcher
from University of Cincinnati in Long Beach, CA, USA
"Silica Dust could be the next Asbestos" -- Be super careful & perform extra DD on any candidate company in this category re: potential legal exposure--the first major lawsuit in Los Angeles re: worker silicosis just concluded with $50MM judgement against a combination of national engineered stone slab mfg/ providers and local countertop fabricators. They failed to protect workers who were cutting engineered stone (eg Quartz) using typically a dry cutting method with inadequate poor quality masks --there are 100+ more cases in the queue, just in Los Angeles county. btw, engineered stone has been banned in Australia and under strict scrutinty in UK and more places. IMHO, proceed with caution.
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Reply by a searcher
from Grace College in Jacksonville, FL, USA
Thanks Alexandra. My biggest concern is growth. The silica dust issue can be addressed with air filtration and industrial scrubbers (I think) but that's costly. Efficient equipment is expensive too. The cost to grow a business like this may outweigh the opportunity as it stands right now. If anyone in this community has tackled manufacturing or fabrication with high unknown costs like this, I'd like to know how you addressed them during due diligence. If I continue down this road, I imagine I'll need to bring in some technical advisors on the equipment, facility, and safety.
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