Storm Shelter Manufacturer and Distributor

Business Description

For sale is a 15-year-old company that designs and manufactures storm shelters in the Southeast. Their safe room shelters are constructed to withstand 300 MPH ground speed wind equivalent to an EF-5 tornado and have been tested by the Texas Tech Wind Science and Engineering Research Center. The storm shelters come in various sizes, both above and below ground, and have accessory options such as televisions, backup batteries, benches, beds, and fans.

Several states in the South have tax credits for eligible taxpayers who incur costs for the construction, acquisition, or installation of a qualified storm shelter at their primary residence. While the passage of these laws contributed to increased revenue, profits were down in 2022 due to a few factors. Many customers placed orders and put down deposits of 30% for shelters (during the busy season between March-June) but materials were very difficult to procur in the second half of the year and the business ended up having to refund most of the deposits (thus not receiving the remaining 70% as well). While the supply chain issues cleared up eventually, material costs almost doubled. The owners chose not to increase prices and honored previously-quoted costs (which severely impacted margins).

There are 200 orders in the queue for this year, with an average order value between $6K and $8K. Nearly 90% of the customers are residential, and 10% are commercial.

The current owners work around 20 hours per week remotely. Three key managers and approximately 12 other W2 employees are in place onsite to help a buyer with the transition.

This listing requires seller approval for the CIM. We appreciate your patience as we receive approval and we will send you the CIM as soon as possible.