Upper Mich. Lumber Dealer With Construction Division

Business Overview:

This Company has provided construction services, and hardware, lumber and other building materials supply to do-it-yourselfers and contractors in the upper peninsula of Michigan for 40 years. It features a full-service hardware store and lumberyard in addition to commercial and residential construction services and overhead door offerings. Its large and stable base of customers value the Company for its excellent service, quality and thoroughness. The combination of the three divisions benefit the Company as a whole, as they are able to offer installed sales to customers and the lumberyard provides consistent and cost-effective access to building materials. The Company presents a geographic growth opportunity for a buyer interested in taking over an established, successful business in an underserved region of the state. The owners are willing to assist buyers through a reasonable transition period.

Broad capabilities – As a hardware and building materials supplier with design and build capabilities, the Company offers more services than its competitors and is able to generate above-average profit margins.

Loyal customers – The Company’s reputation for high quality and customer service has won it many repeat buyers. It currently maintains approximately 250 customer accounts, and one of its main customers on the construction side of the business has a multi-year construction budget that exceeds $200,000,000.

Professional systems – The Company’s construction division utilizes a state-of-the-art cloud-based project management system.

Commercial and high-end focus – The Company’s construction division is primarily focused on larger commercial projects, and residential work is often limited to high-end luxury homes in the region.

Central location – The Company is ideally located to serve the many resorts, cottages, year-round homes, farms, businesses, and local governments in its region.

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Property Features and Assets:

The facility, which has been the Company’s home for 40 years, consists of two buildings. The main building has about 24,000 square feet of floor space, about 7,500 square feet of loft and another 1,000 square feet of tool storage.

Market Competition and Expansion:

Broad capabilities – As a hardware and building materials supplier with design and build capabilities, the Company offers more services than its competitors and is able to generate above-average profit margins.

Loyal customers – The Company’s reputation for high quality and customer service has won it many repeat buyers. It currently maintains approximately 250 customer accounts, and one of its main customers on the construction side of the business has a multi-year construction budget that exceeds $200,000,000.

Room to grow – The business is operating at less than full capacity, and its current facilities could handle additional sales volume. Additional marketing – Current efforts are focused primarily on newspaper and radio advertising and the Company’s website.

Reason for Selling:

Additional Details:

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