MergerPlace

Successful Ontario General Building

Ontario


  • Asking Price: $6,500,000
  • Gross Income: $14,250,000
  • Cash Flow: $890,000
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: $639,429
  • Listing ID: #214664
  • Established: 1955
  • Employees: 50 FT

Business Description

This Southern Ontario Contractor is highly successful in the key sectors where it has operated for over 65 years. These include extensive accomplishments over decades in the following sectors: Steel, Energy, Municipal, Mining, Distribution and Manufacturing. This diversification has been vital to its success.

Financial results vary from year to year based upon project bids and completion. The company is listed at a reasonable 3.25X multiple of average annual normalized cash flow (FY2017-FY2020) at $5,000,000 plus real estate valued at $1.5 million and the valuation considers the strength of the vehicle and equipment asset holdings. Listing price is $6,500,000.

It is run conservatively without debt and a focus on quality with a highly competent management team. The company retains a broad satisfied customer base and receives many projects through referrals and a network of sub-contractors, suppliers and associations with large mechanical and electrical firms. A good backlog of business exists.

The company is poised to deliver a record-breaking year in 2021 with a number of major projects underway. Revenue will approach $30,000,000 and normalized SDE (pre-tax cash flow) for 2021 could reach $2.3 Million after all OPEX.


Business Details

Primary Business Category: Construction - Building, Developing
Location: Ontario

Company Information

Year Established: 1955
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 50 FT

Financial Information

Asking Price: $6,500,000
Gross Revenue: $14,250,000
Cash Flow: $890,000
FF&E: $639,429
Seller Financing Available: No

Property Information

Facilities:

The company operates out of an upgraded facility which includes 2,750 square feet of office and 8,500 square feet of warehouse & shop. The sale of the business excludes the real estate and facilities which are available for an additional $850,000. Valuation is supported by a conventional opinion of value.

Growth & expansion opportunities:

The sectors served by the business are enjoying a period of significant growth. Municipal and Energy Sectors in particular have a number of major projects in the planning stages that will benefit the company assuming ongoing bid and alignment success. Full CM Potential for Growth The sectors served by the business are enjoying a period of significant growth. Municipal and Energy Sectors in particular have a number of major projects in the planning stages that will benefit the company assuming ongoing bid and alignment success.

Competition:

Competition exists in some of the sectors where the business operates on a project basis. Competitive tenders are often seen from clients but this firm wins a solid share of the business it seeks.

Reason for selling:

Owner Retiring from this highly successful business with a reputation for quality and reliability.

Support & Training:

Will train for 12 weeks @ no cost.

Contact Business Seller

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Business Listed By:

Gordon Schofield

Murphy Business Brokers