Annual Revenue: $7,000,000
Minimum Equity Required: $750,000
Location: Nova Scotia
Listing ID: 1338
Listing Status: New
If you believe Nova Scotia's population has year of growth ahead, that energy efficiency is a critical decision factor in new home construction, and you have a love for construction and delivering not just a house but a dream, then this will be worth your attention.
We only work with established, profitable, bankable businesses and this is a well established operation with a strong reputation that has chosen only to service so many new builds a year. They have passed on the option of growth to maintain a stable base for ease of management and to maintain a personal lifestyle, even though there is a waiting list of customers wanting them to build for them.
Located in a major commercial hub outside of HRM, this operation is in a great position today after having a few different years through the pandemic with restrictions, supply constraints, and some fixed contracts where costs were escalating. A long history of operations and a few learning opportunities along the way have allowed this business to be well positioned for whatever is to come along, including a new owner.
Staff of + or - 30 full and part time.
The sale is structured as a sale of 100% of the authorized and issued share capital of the company. The sale price of the business considers Working Capital at $0, however, it shall be adjusted accordingly at closing. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most of your questions.
** Fiscal year end is March 31. Annual Revenue and Seller's Discretionary Earnings (SDE)
2024 Projections (based on just "new" build commitments on books today)
Balance sheet considerations: You can expect working capital to be in the $200k range at closing, which would be ideal between January and March.
SDE is calculated with the inclusion of a Fair Market Value rent expense of $30k which is sufficient to carry a mortgage of approximately $350,000. 2023 SDE of $470k is after $30k rent expense.
* Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
** Our expectations are for a minimum 40% down payment on the final negotiated purchase price. Feel free to run some of your own calculations here:
Home Office building included and has been recently appraised at $450,000. Phase 1 Environmental done in 2020.
Site Area measures approximately 24,000 sq. ft. ± - total of 2 parcels
Building Area measures 4,400 sq. ft. ±
For more information on this listing, please complete our Non-Disclosure Agreement