$2.2M
$789K
2.8x
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The trailing 12 month’s revenues to Feb 28th were 5.79M with 789K in properly adjusted earnings which is a 14% profit margin. 2025’s revenues were 5.56M with adjusted earnings of 739K which is a 13%...
Why we like it
- Strong cash conversion with 14% adjusted margins on $5.79M revenue shows disciplined pricing and cost management. The $789K in properly adjusted earnings translates to healthy cash generation in a business that typically doesn't require significant working capital or long payment cycles.
- Dual moat from manufacturing capabilities combined with installation services creates customer stickiness and higher switching costs. Custom window treatments require specialized measurements, fabrication, and installation knowledge that keeps competitors at bay and supports premium pricing.
- Residential construction and home improvement spending remains robust in Denver's growing market. The shift toward remote work has driven increased investment in home aesthetics, while new construction provides a steady pipeline of commercial and residential opportunities.
- Established 10-year operating history provides proven systems and likely strong local market recognition. The business has weathered economic cycles and built the operational infrastructure needed to handle $5.79M in annual volume, reducing execution risk for a new owner.
How to improve it
- Implement digital lead generation through Google Ads and SEO to reduce dependence on referrals and showroom traffic. Most window covering companies still rely heavily on word-of-mouth, creating an opportunity to capture market share through better online presence and lead nurturing systems.
- Develop commercial accounts and property management relationships for recurring revenue streams. Hotels, offices, and apartment complexes provide larger orders and repeat business that can smooth seasonal fluctuations in residential demand.
- Expand product lines into complementary home improvement categories like blinds, shutters, or motorized systems. Cross-selling existing customers and leveraging installation capabilities can increase average order value and customer lifetime value.
- Build systematic follow-up processes for maintenance, cleaning, and replacement cycles. Window treatments have natural replacement timelines, and proactive customer communication can generate predictable recurring revenue from the existing customer base.
- Optimize inventory management and supplier relationships to improve gross margins. A 10-year-old business likely has established vendor relationships that can be renegotiated, and better inventory turnover can free up working capital while reducing carrying costs.
Diligence notes
- Verify the adjusted earnings calculation and understand what expenses were added back to reach the $789K figure. Many home services businesses have owner discretionary spending that inflates true profitability, and understanding the quality of earnings is critical for valuation.
- Analyze customer concentration and sales channel mix to assess business durability. If revenue depends heavily on a few large commercial accounts or a single referral source, the business carries higher risk than a diversified customer base suggests.
- Review the manufacturing setup including equipment condition, lease terms, and production capacity utilization. Understanding whether the business can scale revenue without major capital investment or facility expansion impacts growth potential and working capital requirements.
- Examine the competitive landscape and market positioning in Denver to validate pricing power and market share opportunity. The window covering industry has both large national players and small local shops, so understanding competitive dynamics is essential for growth planning.