Icon-facebook-2 Icon-instagram-1 Linkedin Icon-youtube

Longstanding Electrical Services Company

Back to Listings

Annual Revenue: $1,930,000

Minimum Equity Required: $500,000

SDE: $325,000

Location: Nova Scotia

Industry: Services

ID: 1357

Status: Sold

Description

Long-standing electrical contractor focused on commercial, residential, new construction and renovation, along with other power supply services.

55 year old operation, selling for retirement purposes. Located in a strong market with load of growth happening.
- approximately 20 staff
- owned building
- 10+ vehicles
- Excellent upside with tighter controls. Only 1 price increase in 5 years would be a simple example. Many others to share.

The government of Nova Scotia has recently announced a significant support program for trades. It is a great time to be in construction in Nova Scotia.

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 when the listing becomes live.

Financial Information

Historical Annual Revenues and Seller's Discretionary Earnings:
*Fiscal year-end is July 31.

2024 Projection
Revenue: $2,400,000+ (first price increase in 5 years implemented in Summer '23)
** 5 month YTD, $1.1M in revenues, $225k+ SDE

2023
Revenue: $1,929,000
SDE: $325k

2022
Revenue: $1,629,000
SDE: $164k

2021
Revenue: $1,532,000
SDE: $242k

Required Working Capital for ongoing operations is approximately $100k. (In addition to asking price)

SDE is calculated with the inclusion of a Fair Market Value rent expense of $29,000. 2023 SDE of $325k is after $29k rent expense.

Annual Return on Investment
Based upon a purchase price of $1,459,000, 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 78% ** (Details of these calculations provided upon request).

* 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

Operations

Business occupies 3,000 sft of an 8,000 sft building, built in 1995, located on 1.6 acres and serviced by city water and sewer. There is a 1360 sft outbuilding as well, used mostly for storage.

Additional income from tenants would be in the $50,000 range, with potential to be greater than $60,000.

Property is expected to have a value of $925k or more and is included in the asking price. Financing of 75% would be available at rates in the 7% range. Mortgage payments would be approximately $5k/mth.

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

Complete NDA For Full Overview
Share with the world

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2024 Gateway Business Brokers Group. All Rights Reserved.

Icon-facebook-2 Icon-instagram-1 Linkedin Icon-youtube
Scroll to Top