Profitable Building Materials Distributor

Price: $685,000

Location: Traverse City, Michigan

Industry: Building Materials Distributor

Listing ID: CK231017AW

Status: Under Contract

Listing Description


The company is a distributor of building materials that sells to both retail/end-user and commercial accounts.  The split between the two are roughly equal.

Unique to Northern Michigan businesses, there is little seasonality to the current breath of business.  Multiple opportunities for growth are existing and continue to increase, however, it will take additional sales resources to take full advantage of the growing opportunities. The current owners do not have the will or interest in committing themselves to grow the business.

The company has a very loyal customer base.  The goodwill and quality reputation continue to serve this company well in terms of repeat business and legacy business relationships.  The company delivers every job it sells.  There are additional opportunities in providing more services to its clients.

Another advantage is that all of their competition is headquartered outside the Traverse City area and there is a preference for local project managers to buy local in Northern Michigan.  The competition has either a branch or a single person to service the client base.  This company is known as the “go-to” trusted supplier with an outstanding reputation for quality in the Traverse City area marketplace.

There are numerous identified opportunities that offer significant growth potential for the next owner of this business.

Listing Details

Total Sales: $1,330,000

Cash Flow: $299,698

EBITDA: $206,059

FFE: $30,000 (Included in Price)

Inventory: $12,000 (Included in Price)

Real Estate: $250,000

Terms and Conditions?:

Seller is open to some seller financing.

Reason For Sale:

Owners looking to retire.

Training & Support:

Owner/Operators are willing to stay on for an extended period of time to allow the new owners to learn the business, especially the bidding process for commercial accounts.


Year Established: 2001

Days & Hours of Operation: Monday - Friday, Normal Business Hours

Owner Hours Per Week: 40


Lease Option: Available from Business Owners

Monthly Rent: $1,650/month on a Triple Net Lease

Type of Location: Light Industrial Complex

Square Footage: 2,800

Relocatable?: Yes

Facilities Information:

The building is 2,800 square feet, with 960 square feet for office and the remaining 1,840 square feet used for their fabrication shop and warehouse. This space is ample space for its current level of sales and could accommodate some increase in sales, but a larger unit would be needed to support a significant increase in sales and personnel.

This property is located with other light industrial buildings. Each unit is independent from each for utilities and use. The unit was completed in 2001 and it has been very well maintained.

Location can support some growth of the business.

This unit is available for sale, separate from the business, for $250,000. It may also be leased for $1,650 on a triple net lease.


Owner Qualifications:

The ideal new owner would be someone that has experience in bidding commercial projects involving building materials or with a building material background and the interest on being trained to perform commercial bidding.  No licensing is required.


The company has a long-standing excellent reputation for providing quality products with superior service.

The retail portion of the business does compete with big box stores.  Its competitive advantage is the customer support they provide to customers as a local small business. This is a major advantage in the Traverse City market as this company responds to issues almost immediately making it very competitive. From the commercial side, its competitors are either branches or individuals headquartered outside the local geography.  There is an emphasis in the geography to support local businesses.

Potential Growth:

There is significant opportunity for growth.  The current owners are leaving dollars on the table as there is no effort directed on utilizing the web for additional revenue, the company does no advertising, there are no outside salespeople, no marketing call center and there is no prospecting occurring to drive new business.  The reason for this is simple, the current owners have no interest in focusing on driving new business; their only interest is in simply selling the business.

On the commercial side, they are asked to bid on more jobs than they can handle.  There is an unlimited opportunity to go after new and additional business.


Seller is willing to offer some seller financing to assist with SBA financing.