Kansas-based Fencing Company

Project Fencing is a fully integrated fencing company based in Kansas. The company wholesales fencing products to retailers across the Midwest, with a strong concentration Kansas-wide. The primary customers are fencing retailers and installation companies across Kansas that are in the residential and commercial markets. The Company also does installation itself in the residential space. The majority of sales, however, are B2B which is comprised mostly of installation and service companies. We estimate this to be about 70% of Revenue, while the remaining 30% is direct residential for Project Fencing.


Business Highlights:
- Company Growth: Management identifies growth opportunities within the wholesale, wood fencing, and do-it-yourself fencing markets. Facilitating this growth involves developing a traveling sales position and sourcing competitively priced lumber from a nearby mill. Management believes these growth initiatives will allow successful integration into new markets in Eastern Kansas and the Texas and Oklahoma Panhandles.
- Market Channels: Customers are predominantly retailers and installers of fencing and related products. A smaller subset of revenue is attributable to installing deck and fencing products.
- Barriers to Entry: It is difficult for new companies to develop relationships with customers and vendors that Project Fencing has spent 30 years building and maintaining. Project Fencing also put forth significant CapEx early on to become vertically integrated, which most companies cannot afford or justify.
- Competitive Advantages: Being vertically integrated, as well as an exclusive provider for a large vinyl manufacturer in Kansas, and a large provider to steel fencing manufacturers are all key advantages. Their strong market share allows them to sell materials to their regional competitors. Location and knowledge allow for pricing power.
- Management and People: There are 20 employees and 2 welders for welding and fabrication needs. The remaining management team possesses the industry knowledge needed for seamless post-acquisition operations.
- Industry Growth: Increasing housing construction is driving part of the U.S. Fencing industry’s growth, with an expected compound annual growth rate (CAGR) of 5% from 2022 to 2030, according to Grandview Research.
- Financials: No customer over 20% of Revenue. No debt, strong asset base, and an excellent candidate for financing.