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Longstanding Specialty Supply, Sales, and Service Business

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Complete NDA for Full Overview

Price: $339,000

Annual Revenue: $525,000

Minimum Equity Required: $150,000

SDE: $125,000

Location: Nova Scotia

Industry: Retail, Services

ID: 1412

Status: New

Description

This business is a well-established longstanding supplier of innovative quality products, along with multiple sales channels and a service component to a diverse number of reputable industry sectors. Since its inception over 40 years ago, the company has updated their offerings and adapted to the evolving needs of their clients. The business stands out for its comprehensive product range, turnkey project solutions, and commitment to sustainability and customer satisfaction.

A few key highlights that support sustainability and future growth include:

- Standing offer with Federal Gov’t (preferred supplier of specific equipment)
- Long term relationships with organizations such as Health NS, all Universities, Province of NS, City of Halifax, NS Power, DND, RCMP, CoastGuard, and more.
- There is no customer concentration risk to speak of. There are 2 larger clients (accounting for approximately 25% together), all have multiple divisions, regions, separately managed, all autonomous as far as purchasing decisions are made.
- Membership with key industry group, supports best pricing from all of suppliers.
- Priorities for growth are primarily focused on sales and relationship growth, many industry segments are untouched, limited competition, many complimentary product offerings available. Business is only open 4 days a week, owner working less than 20 hours a week.

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 be sent a full Offering Memorandum that will answer most, if not all, of your questions.

Financial Information

Annual Revenues and Seller's Discretionary Earnings, with year end September 30:

2023
Revenue: $525,000
SDE: $136,000

2022
Revenue: $505,000
SDE: $130,000

2021
Revenue: $480,000
SDE: $90,000

Balance sheet considerations: Working capital should be anticipated to be in the $35k - $50k range on closing.

* 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.

** Please refer to our Minimum Equity requirements. Our expectations are for a buyer to be "capable" of making a minimum 35% down payment on the final negotiated purchase price, to be considered truly qualified. 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

Operates from an 1,800 sft leased location, however, could easily be relocated.

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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At Gateway, as M&A professionals, we specialize in mergers and acquisitions, turning goals into reality for both sellers and buyers. We excel in advising the buying and selling of businesses, prioritizing top-notch client experiences, guided by solid values.

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