Industry Overview
The Global Hardwood Plywood Market is projected to reach $114.8 BILLION by 2027 at a CAGR of 8.5%
- Research and Markets, 2022
The Global Veneer Sheets Market is expected to reach $4.6 BILLION by 2029 at a CAGR of 4.5%
- Data Bridge Market Research, 2022
Business Description
This extraordinary start-up was 23 years in the making and there is no other product on the market like it. The seller has used nature and science to create a repeatable process in crafting spalted wood. Nature produces spalted wood and the only way to get it is find a piece on the forest floor. This boutique wood alchemist has developed a proprietary biomimicry process that enables the cultivation, production and scalability of authentic spalted maple. The seller currently has two million square feet of inventory which can be made into multiple products. The retail value of the inventory for spalted veneer products is between $6 million and $13 million. The current inventory can also be used to produce 62,500 sheets of spalted maple plywood with a retail value of $28,000,000 USD. This process can also be used to create spalted wood from other species. The seller is currently working on an expansion plan to produce at least 40,000,000 square feet of spalted wood. There is a US Patent pending on this amazing process. An independent appraisal valued the probable sales price at over $15 million USD. This valuation is included in the CIM.
Financial Summary
Demand is strong for spalted wood products and the margins are high. Gross Profit is over 50% since nature is doing most of the work. A valuation conducted by a certified professional pegs the sales price of this business at over $15m USD. The valuation and forecasts are available in the CIM.
Investment Rationale
Return on Investment (ROI) is huge considering current inventory can be made into 62,500 sheets of spalted maple wood with a retail value of over $28m USD. There are no competitors which can mass produce spalted hardwoods.
Customer Overview
Current customers are Fortune 500 companies using the unique aspects of spalted maple to decorate office and retail spaces.
Transaction Information
Seller is looking for a full sale. He wants to stay with the business in a creative and scientific role.
What is Spalted Wood?
Spalted wood is any kind of timber which has undergone decay caused by specific mushrooms. The kaleidoscope patterns of color washes and black lines are a chemical reaction of two competing fungi putting up walls to keep the other at bay as they fight to colonize the wood. These stunning forces of nature are consistently inconsistent - perfectly imperfect, and exactly why people love it.
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