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Profitable Flooring Contractors Business Investment Opportunity in Medellín, Colombia

Medellín flooring firm seeks investment to expand into modular furniture manufacturing with 40% projected profitability.

Established 1-5 year(s)
Employees 5 - 10
Legal Entity Sole Proprietorship/Sole Trader
Reported Sales USD 50 thousand
Run Rate Sales USD 60 thousand
EBITDA Margin 40 %
Industries Furniture + 1 more
Locations  Medellín
Local Time 7:53 AM America / Bogota
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 240 thousand for 40.0% stake (Native Currency: COP 960,000,000)
Reason: We are seeking investment to expand our business into the high-potential sector of furniture and mod... View More
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Business Overview
Business overview & expansion plan:
- We are currently a flooring sales and installation company operating in Medellín, with 20 recurring business clients across the city, and our products comply with Ministry of Health standards as a 100% aseptic product. The business has commercial and tax registration documents.
- Backed by 20 years of promoter's extensive experience in the sector, we maintain strong relationships with key players in the construction industry, including designers, architects, contractors, distributors, and material suppliers.
- We are now planning to expand into the manufacturing of furniture and modular systems for the construction and remodeling industry. This expansion leverages our industry expertise, market knowledge, and established client base.
Expansion objectives:
- Introduce innovative manufacturing processes and materials with superior resistance, versatility, durability, and wear-resistance, all at competitive pricing.
- Address a clear market gap: Current solutions have prevailed for years due to a lack of alternatives. Our products will offer an innovative, scalable, and high-demand solution for construction and remodeling projects of all sizes.
- Meet growing demand across local and regional markets with rapid expansion.
Production & business model:
- Initial projected installation capacity: 7,800 panels.
- First phase projected production: 1,200 panels.
- Sales model: Cash revenue through direct clients, distributors, advance orders, made-to-order sales, and batch production for large-scale projects.
- Added value services: Custom design, cutting, modulation, and finishing will be offered at additional cost.
- Product pricing varies based on material properties, coatings, and lamination, enabling tiered pricing and improved margins.
Strategic advantage:
- We are in talks with a supplier offering partnership within a free trade zone, enabling inventory management and logistical support for large projects.
Market environment:
- Colombia is undergoing strong economic recovery, with government policies supporting industrial growth and entrepreneurship.
- As CELAC president, Colombia is also driving regional trade integration and improving access to international markets through trade agreements and infrastructure investment, positioning the country as a future logistics and manufacturing hub.
Projections:
- Projected net profitability: 40% in the first year, increasing with the implementation of manufacturing processes.
- Estimated investor profit: COP 364.8 million with ROI in 2.7 years.
- Forecasts are conservative, accounting for early-stage ramp-up.
Conclusion:
- This project represents a viable, profitable, and highly scalable opportunity with a strong competitive advantage in a changing market. It offers an innovative product in a growing industry, with clear potential for regional expansion. Backed by experience, market demand, and strategic positioning, this is an excellent opportunity for strategic investment in light manufacturing.
Products & Services Overview
The business currently provides flooring sales and installation services to 20 recurring business clients in Medellín, including warehouses, buildings, clinics, hospitals, enclosures, and interior divisions for large construction projects, and is now expanding into manufacturing innovative furniture and modular systems designed for the construction and remodeling industry.
These next-generation products will be engineered for enhanced durability, versatility, and resistance and will be used by architects, contractors, designers, and developers in residential, commercial, and industrial construction projects.
Offered at competitive prices and customizable with additional services like cutting, modulation, and finishing, the products will cater to a wide range of clients seeking efficient, scalable, and high-performance interior solutions across Colombia’s rapidly growing construction sector.
Assets Overview
The company currently has no significant physical assets, as only minor equipment and tools are in use, and inventory is procured on a per-order basis. The investor will not receive a stake in these existing minor assets, but will hold equity specifically in the new high-tech machinery and related assets acquired as part of the expansion.
Intangible assets include industry connections, 20 years of industry experience, alliances with companies in the sector, market knowledge and clients.
Facilities Overview
Currently, the company operates from a rented warehouse and office in Medellín. For the planned expansion, a facility of approximately 850 m² will be required, comprising 100 m² of office space, 130 m² of storage, 50 m² for a showroom, and 570 m² dedicated to production, packaging, and deliveries.
Capitalization Overview
Self-funded.
No outstanding loans or liabilities.
There is 1 owner in the business.
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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