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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: Services

Listing ID: 1338

Listing 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 sale is structured as a sale of 100% of the authorized and issued share capital of the company. The sale price of the business considers Working Capital at $0, however, it shall be adjusted accordingly at closing. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most of your questions.

Financial Information

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

2024 Projections
Revenue: $6,200,000+

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.
 
** 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

Real Estate

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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