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Longstanding Flooring and Blinds Retailer and Installer

Description

If you believe there is a bright future in the renovation and new construction industry in Nova Scotia, then taking the time to learn why this company stands out from all others is going to be worthwhile. Reputation, workforce, longevity, continuous growth are 4 critical factors to the stability of any operation, and this business certainly provides that. as is the amount of business already committed to and the amount of business the current ownership has been unwilling to capitalize on because of current life circumstances.

 

A few highlights include:

- 30 years in business with a strong reputation for service, selection, and pricing.

- reliable staff of 7, five full-time employees in the store and two installers
- building in excellent condition with several important upgrades done in recent years (Roof and Parking Lot)

You will not be disappointed in this business.

 

By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions.

Financial Information

Annual Revenues / Seller's Discretionary Earnings:

2022: Expected to see sales in excess of $2,500,000 with SDE of approximately $500k

2021: $2,350,000 and $450K

2020: $2.1M and $345k

2019: $2M and $303K

2018: $2.08M and $436K

 

We consider the stabilized SDE to be in excess of $400k

 

*Seller's Discretionary Earnings has been adjusted to include a hypothetical rental amount of $42k, which is sufficient to carry a $625k mortgage at 3.25% over 20 years.)

 

Balance Sheet: Working Capital has been running in the $650k range, with nearly $0 Current Liabilities, only because the company has the ability to take advantage of some early pay discounts. Expectation is for new buyer to obtain a Credit Line of 75% for Receivables and Inventory and/or take advantage of supplier terms. It is believed the successful buyer will require no more than an additional $150k in equity for working capital purposes to fund the deal. Accounts Receivable will need to be discussed, based on timing of when they are booked.

 

** 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 35% down payment on the final negotiated purchase price of the business and the building (if acquiring), with the balance of the agreed upon value being financed over 20 years for the building and 7 years for the business. Feel free to run some of your own calculations here:

 

https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Real Estate

Strategically located along an important thoroughfare, just off the main commercial strip, this + or - 6,000 sft one-story building was constructed in 2000, has a new steel roof, is situated on + or - 1 acre of land, and serviced by town water and sewer. It is in excellent condition.

 

The building was well designed for storage/operations and features 13-foot ceilings.

 

Real Estate value is not expected to exceed 800k.

 

Given the growth of the business in recent years, the company was required to obtain another 4,000 sft of off-site storage, which is costing $800/mth all in.