Insights on Cabinet Manufacturing?

searcher profile

June 17, 2025

by a searcher in Norman, OK, USA

I have sourced an off-market cabinet manufacturing deal in the Midwest. The company generates ~$9M in annual revenue and has already completed two prior acquisitions. The owner is open to either staying on in some capacity or fully exiting. I would appreciate any insights on the industry, thoughts on a full buyout vs partial, or from capital partners who may see potential in this opportunity.
2
5
84
Replies
5
commentor profile
Reply by a searcher
from The University of Arizona in Gilbert, AZ, USA
Highly reliant on new homes. Also customer concentration risk is real in these businesses, as generally a couple of GCs or custom builders drive a high % of their sales. Personally, I love the business but Im also good with the risks and mitigation strategies to reduce them.
commentor profile
Reply by an investor
from Arizona State University, Tempe Campus in Fort Lauderdale, Florida, United States
Are they doing custom cabinets or RTA? If RTA then I’d agree with Patrick Scheid comment about the need of new homes. If they are doing custom, chances are a good portion of the income would be coming from remodelers. I would take in consideration how easy you can find skilled installers in your area (if they handle installation), as profit margin tends to be good with cabinets but in my opinion as a remodeling company, customers are really picky about cabinets, and rework can make a good profit desapear in front of your eyes.
commentor profile
+3 more replies.
Join the discussion