Award-Winning Kitchen & Bath Remodeling Firm, 25-Year Illinois Design-Build Contractor

$9.0M

Revenue

$900K

SDE

4.7x

Multiple

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Full Editorial Writeup

This is a full-service, design-build kitchen and bathroom remodeling firm serving residential clients across a major Midwest metro, operating for more than 25 years from two established showrooms. The model is integrated and vertical on the design side: in-home consultation, 3D design, construction, and project management are handled by an in-house team of designers and project managers, with the actual trade work executed through a network of carpenters, electricians, plumbers, and tile setters. On $9M of revenue the business throws off roughly $900K of owner cash flow, a 10 percent margin that is respectable but not spectacular for a project-based remodeler.

The standout asset is reputation. 140-plus design awards and a 5.0-star rating across hundreds of reviews drive a referral-heavy, low-cost lead pipeline, which matters enormously in a category where most competitors burn cash on lead-gen. The firm deliberately straddles the market, from $20K value jobs to $200K-plus luxury custom renovations, which smooths demand across economic cycles better than a pure luxury shop but does not make it recession-proof.

At $4.25M against $900K cash flow, the 4.72x multiple is aggressive for a residential remodeler that is fundamentally project-based with no contract backlog or recurring revenue. The buyer is paying a premium for brand, showrooms, and a trained team. The thesis only works if that reputation genuinely converts to a durable, self-sustaining lead flow that survives the current owner's exit.

Why we like it

Earnings quality rests on a referral-driven lead engine rather than paid acquisition. A 5.0-star rating across hundreds of reviews and 140-plus design awards means marketing spend stays low and conversion stays high, which protects the roughly 10 percent cash flow margin that is otherwise thin for the category.
The dual-market positioning is a genuine durability feature. Serving $20K value jobs alongside $200K-plus custom renovations means the firm can flex down into budget work when affluent discretionary spend pulls back, giving it a more resilient revenue base than a pure luxury remodeler.
The 25-year operating history and two-showroom footprint in affluent, growing Midwest submarkets create real local brand moat. In a fragmented, owner-operated competitive landscape, an established name with physical showrooms and manufacturer relationships is hard for a new entrant to replicate quickly.
A skilled management team and in-house design talent are already in place, and the owner will stay for an extended transition. This lowers key-person risk and makes the business far more operable for a buyer who is not a remodeling expert, supporting a cleaner handoff.

How to improve it

Build a disciplined backlog and deposit-based cash flow system in the first 90 days. Project-based remodelers live and die on pipeline visibility, so install a CRM dashboard tracking signed contracts, scheduled starts, and milestone billings to smooth the lumpy revenue inherent in the model.
Audit and tighten gross margin per project. On $9M revenue a 10 percent cash flow margin suggests either aggressive pricing to win jobs or trade-partner cost leakage, so reprice the value-tier work and renegotiate subcontractor rates to push margin toward the mid-teens.
Attach a recurring revenue layer to the existing customer base. Offer maintenance, warranty, and service plans to the thousands of past clients who already trust the brand, converting one-time projects into a repeat-service relationship that smooths demand and lifts lifetime value.
Execute the consolidation thesis the listing flags. The market is fragmented and owner-operated, so use the scalable back-office and showroom infrastructure to tuck in one or two smaller local remodelers, buying their revenue at lower multiples and folding it under the award-winning brand.
Formalize the referral and reputation machine. Systematize review generation, referral incentives, and award submissions so the low-cost lead pipeline does not quietly decay once the founder steps back, since much of that goodwill may be personally tied to the owner.
Expand into adjacent high-margin project types. Whole-home renovations, additions, and aging-in-place accessibility remodels leverage the same design-build team and showrooms while raising average ticket and broadening demand beyond kitchen and bath.

Diligence notes

Scrutinize revenue concentration and seasonality across the trailing three years. Remodeling demand tracks housing turnover and discretionary spend, so pull monthly revenue and job counts to understand how deeply the business dipped in soft periods and whether the value-tier actually offset luxury softness.
Verify the lead pipeline is institutional and not founder-dependent. Trace where jobs originate, confirm the 5.0-star reputation converts to a predictable close rate, and quantify how much of referral flow runs through the owner's personal relationships versus the brand itself.
Examine the trade-partner network structure and risk. The firm relies on subcontracted carpenters, electricians, plumbers, and tile setters, so confirm these relationships survive ownership change, assess whether any single trade is a bottleneck, and review for worker-classification exposure.
Normalize the $900K cash flow and test the 4.72x multiple. Confirm the add-backs, separate true owner compensation from discretionary expense, and benchmark against comparable residential remodeler sales, which typically trade at lower multiples given project-based, non-recurring revenue.
Review the two showroom leases and work-in-progress accounting. Confirm lease terms and renewal options at both locations, and verify how deposits, change orders, and percentage-of-completion revenue are booked to avoid buying into overstated earnings or unbilled liabilities.

Source

Originally listed on BizBuySell. View original listing →