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Longstanding Electrical Services Company with Real Estate

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Complete NDA for Full Overview

Price: $1,459,000

Annual Revenue: $1,930,000

Minimum Equity Required: $500,000

SDE: $325,000

Location: Nova Scotia

Industry: Services

Listing ID: 1357

Listing Status: Under Contract

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 sale is structured as a sale of 100% of the authorized and issued share capital of the company. For the purposes of this offering, the price considers Working Capital of $100,000 to be included. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most, if not all, of your questions once the listing is 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.

* 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

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

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

Complete NDA for Full Overview
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