Electrical contractor focused on commercial, residential, new construction and renovation, along with other power supply services.
55 year old operation, selling for retirement purposes.
- approximately 20 staff
- owned building
- 10+ vehicles
- Excellent upside with tighter controls. Only 1 price increase in 5 years, simple example. Many other to share.
The sale is structured as a sale of 100% of the authorized and issued share capital of the company. For the purposes of this offering, the price considers Working Capital of $100,000 to be included. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most, if not all, of your questions once the listing is live.
Historical Annual Revenues and Seller's Discretionary Earnings:
*Fiscal year-end is July 31.
2024 Projection
Revenue: $2,000,000+ (first price increase in 5 years implemented in Summer '23)
2023
Revenue: $1,907,000
SDE: $ in progress, expected to be approximately $250k
2022
Revenue: $1,629,000
SDE: $164k
2021
Revenue: $1,532,000
SDE: $242k
Required Working Capital for ongoing operations is approximately $100k. There is some cleaning up required.
SDE is calculated with the inclusion of a Fair Market Value rent expense of $27,000. 2023 SDE of $k is after $27k 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:
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator
Business occupies 3,000 sft of an 8,000 sft building, built in 1995, located on 1.6 acres and serviced by city water and sewer. There is a 1360 sft outbuilding as well, used mostly for storage.
Additional income from tenants would be in the $50,000 range, with potential to be greater than $60,000.
Property is expected to have a value of $925k or more and is included in the asking price. Financing of 85% would be available at rates in the 6% range, possible to obtain higher leverage. Mortgage payments would be approximately $5,450.
