Modular furniture production factory

Modular furniture production factory
Expert broker de afaceri - Corina Mihalcea
Business broker
Corina Mihalcea
București - Romania
+40 737 963 900
Selling price: 700.000 EURO
Annual turnover: 895.387 EURO
Real Estate Value 0 EURO
Operating profit (EBITDA) 170.114 EURO
County / City: Romania
Country: Romania

Short description

Today we are presenting you with a consolidated business, having a presence of 10 years on the market of serial manufacturing of PAL furniture and MDF.

The differentiating element is given by the value proposition that this business presents to its customers: Personalized services and modular products that meet any demand in any space.

The production is carried out in a rented facility, with a firm contract for a period of 5 years, whilst the relationship with the customers is managed mostly online, through its own website and Facebook page. Sales channels are both own and indirect, through key partners (eMag, Vivre), with whom the company is working with since 2016.

Based on the analysis of the management and HR policy, products and services offered to customers, we noticed that the business is selling at a point of stability and development, the owner’s motivation being related to emigration from Romania. Also, the staff organization chart is complete. One advantage of automation is that the business operates with a small staff.

A very important aspect is the one related to the work procedures that have been implemented, which require the owner an average presence of only 20 hours/week in management activities and ensures that the owner can spend holidays with his family.

Products and Services

The business deals with the production custom chipboard furniture pieces for any space, need and aesthetic preferences. From small furniture to 240 cm pieces, customers can choose to furnish their living room, bedroom, hallway, office or kitchen.

Operations

The production processes are fully automated, with a high throughput, which allows a high volume of finished pieces to be produced in a very short time. The manufacturing of customised furniture, particularly large pieces (specific to a dressing room, for example) is an important asset of this business.

Being able to offer to the customers consultancy services was, from the beginning, a cornerstone of the business, based on personal or online support, through the digital communication channels.

Selling online through its own website or through eMag, Vivre platforms.

Packing with all hardware and assembly instructions, delivery in parcels, in kit form (Ikea type), and transport of parts to the customer, with nationwide coverage.

Tangible and intangible assets

Tangible assets are made up of production-specific equipment and machinery, some of which are listed:
- circular for cutting
- cant application machines
- multiple drill with 4 working groups
- CNC drilling machines

Its own fleet of cars consists of 2 Ford vans of 3.5 tons, purchased new.

Market and development potential

The main driver of the business is the dynamics of the residential segment which, together with the customer orientation towards home comfort, brought an increase in the demand for furniture products, customized and adapted to the customers’ living space.

With a larger market share than wood furniture production, the chipboard products sector has entered an upswing, evidenced by the high demand for plain and melamine chipboard from suppliers, despite rising costs.

Most of the demand currently comes from the domestic market, but the products can be adapted to the international market at any time. The potential for development is linked to export opportunities and the expansion of the product range with new patterns, shades and material combinations. The current production line allows for further expansion, and the company’s financial situation allows access to funding.
When advertising a business for sale, the person doing this advertising has the professional obligation to keep the business's and shareholders' information confidential. Therefore, data fields marked N/A can only be disclosed by signing a Non-Disclosure Agreement (NDA).

Detailed information

Business established on 2013-09-01
Turnover from previous years 862.627 EURO
Trademark N/A
Goodwill N/A
Seller/bank financing 0 EURO
Approximate inventory 110.000 EURO
Inventory included in price Yes
Number of Employees 8
Support and training Yes
Reason for sale Relocation of the administrator outside the country

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