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Established Lumber & Hardware Stores

Home & Garden

Client Number

64528

EBITDA

$3,873,000

Revenue

$26,500,000

Region

Southwestern U.S.

Contact Details

Fred Zweifel

(972) 232-1109

fzweifel@generational.com

The Company is a well-established retailer of high-qualitylumber and hardware products. It operates two brandedhardware and lumber stores located approximately 55 milesapart in the Southwest U.S. The Company sells products in abroad range of categories including lumber, hardware, doors,windows, roofing, siding, decking, drywall, trusses, andblocks. The Company caters to contractors and retailconsumers in its two locations and surrounding areas.However, the Company primarily focuses on the non-retailmarket and has successfully expanded its revenue basethrough its relationships with contractors and home builders.Through various initiatives and exceptional service,management has successfully developed a loyal base ofcustomers that has enabled the business to operate for over30 years. Investment Considerations Leading Retailer with Limited Competition: There is limited competition in the markets the Company serves. Thestores are strategically located so the Company is able to capture a leading market share. Buying Group Status: The Company’s relationship with True Value comes up for renewal this Spring. Newownership may have the opportunity to select a buying group that best fits its needs. Experienced Management Team: The owners run multiple businesses and have a strong management team in placeto manage the stores. Recast financials include $200,000 fair market replacement compensation for the two owners. Loyal Customer Relationships: Due to the Company’s reputation, long-term presence in the industry, breadth ofproduct offerings, and strong relationships with contractors and homebuilders, the Company’s recurring revenueexceeds 80% each year. Strong Historical Growth: The Company’s revenue increased from $20.4 million in 2017 to an estimated $25.3million in 2020, while earnings improved from $2.1 million (10.2% of sales) in 2017 to an estimated $3.4 million (13.2%of sales) in 2020. Areas of Opportunity: Management believes, with the necessary capital, there are opportunities for additional growthby adding a store in a neighboring market, expanding its truss capabilities, and opening a custom door shop.  

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