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Custom Residential Construction

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Complete NDA for Full Overview

Price: $2,199,000

Annual Revenue: $6,200,000

Minimum Equity Required: $750,000

SDE: $550,000

Location: Nova Scotia

Industry: Construction

ID: 1338

Status: New

Description

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 owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.

By completing the NDA and becoming adequately qualified, you will be sent a full Offering Memorandum that will answer most, if not all, of your questions.

Financial Information

** Fiscal year end is March 31. Annual Revenue and Seller's Discretionary Earnings (SDE)

2025 (April to July, 3-month period in-house financials)
Revenue: $1,440,000
SDE: $80,000

2024 In-house financials
Revenue: $4,850,000
SDE: $425,000

2023
Revenue: $5,600,000
SDE: $470,000+

2022
Revenue: $5,170,000
SDE: $195,000

2021
Revenue: $4,995,000
SDE: $365,000

2020
Revenue: $5,280,000
SDE: $425,000

2019
Revenue: $4,915,000
SDE: $560,000

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.

Annual Return on Investment
Based upon a purchase price of $2,199,000, with an average portion of the purchase price being financed with normal commercial finance terms, we anticipate an annual Return on Investment of more than 39% ** (Details of these calculations provided upon request).
 
** 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

Operations

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

Complete NDA For Full Overview

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA for Full Overview
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