Don't have Facebook?
Call us at (902) 441-9589
Listing ID: 1155
Over 60 years and several generations later, this wholesale company has proven itself to be an established player in their respective field in Atlantic Canada, with several exclusive lines and products focused on the Atlantic Canadian giftware industry. Some of those items include Pottery, Pewter, Throw Rugs & Mats, Candles & Soaps, specialty Knives, Jewelry, Books & Food items, Tartans & Scottish, T-shirts & Souvenirs.
In November 2017, the Canadian Government made the announcement that CETA - Canadian European Trade Agreement - will come into effect, by which most goods originating in the European Union will enter Canada DUTY FREE. With a majority of the business' products coming from the UK, this reduction in duty goes directly to the bottom line. Duties ranged from 7% to 18%. This free duty will increase profit considerably as of 2018.
Primary focus is NS with some customer base outside NS.
The operations are managed with little to no technology, no e-commerce, and continues to benefit from grass roots marketing efforts (face to face sales).
There is a very cooperative staff, with a total of 4 sales staff and 8 office/warehouse staff (FT and PT).
There is an RRSP sharing program, a health plan, and a long term disability plan in place for staff.
Direct access to major highway.
$1.05M in most recent revenues have generated Seller's Discretionary Earnings (SDE) of $111K.
SDE calculation is after normalizing for \"rent\" payments of $27K per annum, which is sufficient to service a commercial mortgage with 70% financing so you may own this real estate and pay yourself rent.
- Fiscal year end is December 31
- Revenues and profits have been growing year over year for the past several years, with 2018 already double digit growth ahead of 2017 results.
- Over 95% of all sales are wholesale.
- Average inventory levels have been shrinking, most recent YE, $443K, which only $67K of the LOC was used. Company does have a $450K LOC available. Fall is best for lowest inventory.
Inventory is included in the purchase price and will be counted on closing, and pricing will adjust accordingly.
Owned property included, but not required, in sale:
- A two story, 6,941 square foot building, with retail, office, and warehouse/storage, with appropriate loading docks, conveyor and storage systems.
- There is a 2,030 sqft duplex with 2 bedroom apartments, generating $16,800 in income.
- 3 separate lots, all connected, having a combined area of 26,931 sq. ft.
Zoning is C1 - Major Commercial Zone
- Municipal septic and water
- As of September 2017, property taxes totaled $7,263 Approximate value of $550K.
Commercial mortgage at 70% LTV, 20 year amortization, 5% would require payments of $2,530/month. (see financial details above for cash flow calculations)
Helping our clients achieve the greatest success possible requires completing a transaction beneficial to both buyer and seller. To achieve that success, we work exclusively with well-qualified individuals, delve into the unique needs of both parties and develop a strategic plan that will help generate excellent results.
Gateway Business Brokers places a priority on open, frequent and comprehensive communication with our clients. We promise to communicate and confirm expectations in a timely and courteous manner each and every time.
© 2020 Gateway Business Brokers | All Rights Reserved