The business specializes in the manufacture of carpentry products. Its main products are furniture, stairs and doors. The business is a specialized manufacturer, which can be flexible according to the customer’s wishes. The objective has not been to grow, but to develop skills and ensuring top quality are important objectives. The business predominantly produces for private customers. The business solely practices project-based production and does not do design, and it doesn’t have any exhibition rooms of its own. Export is around 10 % of total production. The business has a good reputation and new customers are acquired via recommendations from previous customers. Due to the large amount of orders revenue could be increased by 2-3 times through orders from existing partners.
Asking price justification
The asking price is based on the annual operating margin recognized as revenue, which is produced by the business’ stable market position, and the cash flow projection calculated based on the operating margin.