Acquiring Minds✓ Verified in SBA records

White Collar Sisters Buy A Blue Collar Business

with Julie Hottinger · Signature Woodworking

LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Signature Woodworking

Industry

Commercial cabinet manufacturing and millwork

State

Purchase Price

$2.2M

Multiple (SDE)

2.9x

Year

2023

Financing

SBA 7a

Revenue at Purchase

$2.1M

SDE at Purchase

$750K

LTV at Close

101%

Deal Source

broker

Financing Structure

$1.8M

SBA 7(a)

$1.8M (72%)

Line of Credit

$250K (10%)

Buyer Equity

$220K (9%)

Seller Note

$220K (9%)

Strategic Rationale

Sought to transition out of public health bureaucracy into business ownership while leveraging relationships in home services and construction industries, targeting a business with over one million in revenue and stable cash flow.

Post-Acquisition Performance

Revenue grew from 2.1 million to approximately 3 million within the first nine months of ownership, a roughly 50% increase, driven by increased tenant improvement work in commercial office spaces downsizing and reimagining their footprints.

Key Takeaways

1Buying an established business with proven cash flow and experienced employees can reduce risk compared to starting from scratch or purchasing a franchise.
2Maintaining transparent communication with employees about business changes and listening to their concerns is critical to retention and buy-in during ownership transitions.
3Understanding local market dynamics and contractor relationships is more valuable than relying on broad macroeconomic indicators when evaluating construction-related businesses.
4Cash flow management in project-based subcontracting businesses can require working capital lines of credit to bridge the lag between material purchases and customer payment.
5Implementing basic operational efficiencies like direct deposit, online bill pay, and project management systems can increase throughput without proportional increases in headcount.

Matched SBA Loan Records

SBA loan filings we matched to this deal

Alerus Financial, National Association95%

$290KP + 2.75%FY2011

Platinum Bank95%

$1.6MP + 2.00%FY2023

Old National Bank95%

$356KP + 2.75%FY2010

The Deal

Business

Signature Woodworking

Industry

Commercial cabinet manufacturing and millwork

State

Purchase Price

$2.2M

Multiple (SDE)

2.9x

Year

2023

Financing

SBA 7a

Revenue at Purchase

$2.1M

SDE at Purchase

$750K

LTV at Close

101%

Deal Source

broker

Financing Structure

$1.8M

SBA 7(a)

$1.8M (72%)

Line of Credit

$250K (10%)

Buyer Equity

$220K (9%)

Seller Note

$220K (9%)

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1Buying an established business with proven cash flow and experienced employees can reduce risk compared to starting from scratch or purchasing a franchise.

2Maintaining transparent communication with employees about business changes and listening to their concerns is critical to retention and buy-in during ownership transitions.

3Understanding local market dynamics and contractor relationships is more valuable than relying on broad macroeconomic indicators when evaluating construction-related businesses.

4Cash flow management in project-based subcontracting businesses can require working capital lines of credit to bridge the lag between material purchases and customer payment.

5Implementing basic operational efficiencies like direct deposit, online bill pay, and project management systems can increase throughput without proportional increases in headcount.