Broker Name:Steve Hitchcock
Broker Email:steveh@touchstonebiz.com
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Reclaimed Lumber Specialist - Custom Home Materials
(Construction, Building Materials)
Montrose County, Colorado
Listed Price: $ 975,000
Listing ID: 201811

Listing DetailsGross Revenue: $ 1,510,000
Cash Flow: $ 260,000
FFE: $ 325,000 (Included in Price)
Inventory: $ 600,000
Reason for Sale:

Other interests


Training & Support:

Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.  Seller would be open to a compensated role for a longer term.


Listing SummaryBusiness Description:

This is a business that processes and sells reclaimed lumber products for residential and commercial construction.  With a nearly 20-year history, supplier and customer relationships are long term.  Reclaimed lumber is a high-end product widely used in exclusive custom homes in resort markets.  Telluride, Aspen and Crested Butte are the closest, but this business also has customers who are custom home builders working in Jackson, Big Sky, Yellowstone Club, Steamboat Springs, Summit County, Durango and Vail and regularly ships to high-end home markets in Texas and elsewhere.

 

One of the challenges of working with reclaimed lumber has been to find a method to standardize the grading and quality of the product to minimize waste for the contractor and justify premium prices.  This business has a proprietary grading system which suppliers and contractors use and are happy with as well as in-house kiln drying.

 

This niche market is competition resistant in that the typical lumber yard selling commercially available standard product cannot effectively stock and supply this product despite the demand.  This not only insulates the business from typical local competitive pressures, it also expands the available market radius and protects margins.

 

The 3.5 acre property and 11,000+ ft2 facilities are owned by the seller.  A new lease on mutually agreeable terms will be offered to the buyer.  Seller’s preference is to keep the property but he will consider offers for the property for a sale simultaneous with the sale of the business.  

 

This property location would be ideal for expansion into other building materials such as windows and doors, other reclaimed materials or conventional lumber should a buyer wish to augment the reclaimed lumber business.

 

 

Please Note:  Potential buyers will be asked to complete buyer registration, sign a non-disclosure, interview with broker and provide evidence of the means to complete a transaction of this size before additional confidential information will be provided.


Competition:

There are other suppliers of reclaimed lumber that serve these markets.  The customer base is loyal and rewards reliability. 


Potential Growth:

It would be possible to expand into conventional lumber or to supply standardized reclaimed product to other lumber yards as part of a chain of yards.  


LocationFacilities:

Owned.  New lease to buyer to be negotiated as part of the sale.


OperationYear Established: 2000
Absentee Owner: No