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Specialty Boat Builder & Restorer

Description

If you believe there is a bright future in building and refitting fishing boats and other vessels, then taking the time to learn why this company stands out from all others is going to be worthwhile. Reputation, workforce, and longevity are 3 critical factors to the stability of this operation, as is the amount of business already committed to for the next 3 - 4 years and the amount of business the ownership has been unwilling to accept because of current life circumstances. A few of the following variables round out the operations:

 

- owners only working 65% - 70% of time, very simple management/control structure

- full time Administrator (GM) on staff, responsible for all financial aspects

- staff of 15 - 18

- Government Inspection station

- approximately 20% of work is insurance

 

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. The sale is structured as a sale of 100% of the authorized and issued share capital of the company. Working Capital shall be adjusted at $0. 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:

2021: $3.06M and $550k

2020: $3.15M and $370k

2019: $3.28M and $545k

2018: $3.46M and $400k

 

Revenues have been declining only because of a mix of work as well as owner decisions to not be working in business as much.

 

*Seller's Discretionary Earnings has been adjusted to include a hypothetical rental amount of $77k, which is sufficient to carry a $980k mortgage at 5% over 20 years, plus a 6% return on invested capital.)

 

** 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 both the building and the business, with the balance of the agreed upon value being financed over 20 years for the building and 7-10 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

Expected value of real estate is $1.4M - $1.6M.

 

The building is a 15,213 square foot one story industrial building with 4,016 square feet of mezzanine space, for a total of 19,229 sft. situated on approximately 2.4 acres of land, offering plenty of outdoor storage. The property is serviced by drilled well and onsite septic.

 

115' wharf, bays range from 60' to 125' long and 24' wide, 3-phase 550 am power, oil h/w and heat pumps.