CASE STUDY
Sale of a Well-Established, Mid-Market Cabinet Making Business in QLD.
Transaction Managed by Morgan Business Sales
Overview
Business: Cabinet Making Business
Industry: Construction
Location: Gold Coast, QLD & Northern NSW
Size: Revenue: $5M
EBITDA: $1M+
Staff: 16 + 2 owners
Years in Business: 13
Lead Broker: Brendan Morgan
Morgan Business Sales was engaged by a well-established, highly profitable cabinet making business with state-of-the-art manufacturing facilities, to manage the strategic and financially successful sale of their business.
Objective
Wanting to retire, the vendor sought a full exit while prioritising continuity for staff and the legacy of the company’s culture and service
Summary
Morgan Business Sales executed a detailed valuation and market preparation process to position the business effectively, overcoming licensing and lease challenges to maximise value. By adjusting financials for non-recurring costs and optimising leases for long-term buyer security, the team enhanced buyer confidence.
Targeted buyer profiling and seller coaching led to six competitive offers, with the chosen buyer selected for both capability and cultural fit.
Strategic timing, including an extended sales period to capture improved financial performance, allowed time for an uplift in profits, which resulted in an improved sale price.
The owners selected Morgan Business Sales for their expertise in navigating regulatory and operational complexities, market-leading systems and technology, and their proven ability to deliver tailored sale strategies that prioritise long-term success over simply securing the highest offer.
This business sale case study exemplifies Morgan Business Sales’ capacity to deliver tailored, high-impact M&A strategies that prioritise long-term value creation and successful business transitions beyond just the highest offer.
Challenges
Before engaging Morgan Business Sales, the business faced the following challenges:
1
Complex contractor licensing requirements (required both QLD and NSW licenses, historically held in the owner’s name)
2
Disparate and suboptimal lease terms across three factory units, potentially undermining buyer confidence and financing capacity
3
Valuation was complex due to several recent non-recurring expenditures that impacted headline profitability
4
Absence of a formally designated management team created buyer risk concerns over ongoing operations and handover readiness
These challenges demanded in-depth due diligence preparation, strategic lease realignment, staff upskilling, and comprehensive disclosure management to optimise marketability and preserve confidentiality during the sale process.
Strategy & Approach
Our team implemented a multi-faceted, professional approach to ensure a smooth, high-value transaction:
Valuation & Advisory
Undertook a rigorous business appraisal using three years’ financials with targeted adjustments to future maintainable earnings. Non-recurring costs (e.g., life insurance, one-off showroom build, CNC equipment) were substantiated and excluded to present true underlying profitability. Strategic advice led the sellers to operate an additional six months. This allowed time for an uplift in profits, which resulted in an improved sale price.
Lease Optimisation
Commissioned an independent commercial rental appraisal for all business premises to justify market-based rents. Restructured leases into unified terms with a five-year lease plus two five-year options, creating a secure 15-year tenure highly favourable to financiers and buyers seeking lower financing costs.
Seller Preparation
Guided the owner in securing staff accreditations and promoted a key team member to general manager. This improved marketability to investor-buyers seeking strong management and minimal operational handover.
Confidential Marketing
Developed a comprehensive Confidential Information Memorandum (CIM) with exhaustive financial and operational data tailored to build confidence in non-industry buyers with. Maintained strict confidentiality with controlled distribution to pre-qualified buyers only.
Buyer Targeting & Outreach
Leveraging Morgan Business Sales’ extensive national buyer database, the team strategically identified and personally contacted over 100 pre-qualified potential buyers with relevant capital, management experience, and complementary industry backgrounds such as building trades and related manufacturing. This approach prioritised motivated investor buyers over industry insiders. Detailed profiling and scoring techniques ensured effective targeted outreach and strong buyer engagement. The business was also listed on leading business-for-sale websites to broaden market exposure.
Offer Facilitation & Negotiation
Morgan Business Sales provided prospective buyers with templated offer documents that packaged key terms such as price, due diligence, and finance contingencies to expedite clean, competitive bids. Managed multiple simultaneous offers confidentially, preserving serious buyer engagement and avoiding early deal collapse.
Deal Management
Morgan Business Sales implemented a digital data room to centralise communication, document exchange, and due diligence tracking accessible to all parties, allowing efficient process control despite inevitable delays in financing and legal steps. Notably, the broker also kept the business actively marketed and visible until closing to maintain buyer focus and accountability.
Buyer Assessment & Selection
Morgan Business Sales conducted holistic evaluations of buyers, extending beyond financials to include assessment of professional advisors (solicitors, accountants) and personal networks influencing buyer decision-making. The decision was made to select a young, entrepreneurial buyer with complementary business interests demonstrating motivation and commercial acumen.
Tools & Processes
- Tailored CIM and detailed financial models
- Proprietary buyer database for targeted outreach
- Comprehensive due diligence and offer management platform
- Structured lease and legal frameworks supporting finance readiness
Final Result
Final Sale Price: Achieved full asking price with a significant valuation uplift pre-market from operational improvements.
Buyer Type: Entrepreneurial strategic investor with horizontally integrated industry interests (construction & building services)
Timeline: 96 days on market
Value Creation: Additional trading profit during pre-sale period; sale price enhanced by detailed financial adjustments and lease optimisation
The business was purchased by an entrepreneurial investor, chosen for leadership and operational alignment over the absolute highest offer, ensuring the business’s people and legacy were prioritised.
Client Testimonial
“Just a very quick message to express how truly grateful we both are for all your hard work, please know it did not get taken for granted. We’ll catch up soon for a beer. We’re off with the family to celebrate!” – Former Business Owner (Husband)
“Wow we got there!!! Thank you so much for all your guidance, skill and patience!! We literally couldn’t have done this without you. They certainly broke the mold when they made you!!! Hopefully you can now look forward to a nice, quiet Christmas.” – Former Business Owner (Wife)
Key Insights
Industry Trends & Buyer Demand
Buyer interest in cabinet-making and related manufacturing businesses remains robust, driven by ongoing residential construction and renovation market growth. Importantly, buyers increasingly seek businesses with established management teams and operational resilience that reduce hands-on owner involvement. Strategic investors often outbid traditional industry insiders, valuing cash flow and scalability over technical expertise alone.
Valuation Multiples & Market Behaviour:
Valuation complexity often arises due to recent significant non-recurring expenditures, such as facility expansions or equipment upgrades, which must be carefully adjusted to fairly represent Future Maintainable Earnings (FME). Strategic market timing – as demonstrated by extended trading to capture improved profitability – can significantly enhance sale price beyond initial appraisal. Lease structures and secure tenancy terms materially impact buyer financing capability and willingness to pay premium multiples.
Strategic Takeaways for Business Owners
Thorough preparation – such as reviewing lease agreements, securing all required staff accreditations, and assembling a strong management team – significantly boosts a business’s appeal to buyers. Tailored coaching for sellers and a clear understanding of buyer profiles help align expectations, maintain confidentiality, and speed up negotiations. Partnering with seasoned business brokers like Morgan Business Sales is crucial; their deep market knowledge, extensive buyer networks, and use of targeted listing strategies maximise exposure and attract serious, competitive offers.
Market Takeaway
Demand for manufacturing and cabinet-making businesses remains strong, particularly among strategic investors prioritising operational stability and financial cash flow. Valuation multiples in this sector typically range between 3 to 5 times EBITDA, contingent on management quality and lease security. Strategic acquirers continue pursuing regional growth and consolidation opportunities across Comprehensive sale preparation and targeted buyer engagement are critical to achieving premium outcomes.
About Morgan Business Sales
Morgan Business Sales is Australia’s leading mid-market business sales firm, specialising in M&A transactions across a wide range of industries including civil, construction, manufacturing, healthcare, technology, education, transport, and more.
With over 100 years’ of combined experience across thousands of successful transactions, our team helps business owners achieve maximum value when exiting or expanding through acquisition.
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Request a confidential call with one of our expert brokers today and explore what a successful exit could look like for your business.
