How do I check a kitchen cabinet shop’s reliance on builders before buying?

Many kitchen cabinet shops earn much of their work from a few builders. That can mean steady, repeat jobs. It can also mean one builder’s slow season becomes your slow season. Before you buy, you want to see exactly who the work comes from and how secure those relationships are once the current owner steps back.

Who the customers are

Ask the seller to break recent work down by customer: home builders, general contractors, designers and homeowners. Look at how many names account for most of the jobs. A shop that depends on one or two builders is exposed to their changes, so ask how the customer mix is spread. Your accountant can help you read the pattern in the records.

Whose relationships are they?

Ask how each builder first came to the shop and who deals with them now. If the owner is the one who answers the phone and walks the site, the relationship may be personal. Ask if the seller will introduce you before closing and stay for a handover. A builder who meets you early is better placed to keep sending work.

Order book and deposits

Ask for the list of open jobs, who each is for, how much has been collected in deposits and when each job is due. Ask how concentrated the order book is by builder. Your lawyer can advise on how deposits and unfinished jobs are handled in the sale.

If one builder slows down

Ask the seller what happened the last time a builder paused or went elsewhere, and how the shop filled the gap. Also compare with the wider approach in checking a machine shop’s quoting, where the same idea applies to a different trade: look for the work behind the numbers.