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Specialty Boat Builder & Restorer

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Annual Revenue: $3,250,000

SDE: $465,000

Location: Nova Scotia

Industry: Transportation

ID: 1253

Status: Sold

Description

If you believe there is a bright future in building and refitting fishing boats and other vessels, then taking the time to learn why this company stands out from all others is going to be worthwhile. Reputation, workforce, and longevity are 3 critical factors to the stability of this operation, as is the amount of business already committed to for the next 3 - 4 years and the amount of business the ownership has been unwilling to accept because of current life circumstances. A few of the following variables round out the operations:

- owners only working 65% - 70% of time, very simple management/control structure

- full time Administrator (GM) on staff, responsible for all financial aspects

- staff of 15 - 18

- Government Inspection station

- approximately 20% of work is insurance

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

Annual Revenues / Seller's Discretionary Earnings:

2021: $3.06M and $550k

2020: $3.15M and $370k

2019: $3.28M and $545k

2018: $3.46M and $400k

Revenues have been declining only because of a mix of work as well as owner decisions to not be working in business as much.

*Seller's Discretionary Earnings has been adjusted to include a hypothetical rental amount of $77k, which is sufficient to carry a $980k mortgage at 5% over 20 years, plus a 6% return on invested capital.)

** 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 35% down payment on the final negotiated purchase price of both the building and the business, with the balance of the agreed upon value being financed over 20 years for the building and 7-10 years for the business. 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

Expected value of real estate is $1.4M - $1.6M.

The building is a 15,213 square foot one story industrial building with 4,016 square feet of mezzanine space, for a total of 19,229 sft. situated on approximately 2.4 acres of land, offering plenty of outdoor storage. The property is serviced by drilled well and onsite septic.

115' wharf, bays range from 60' to 125' long and 24' wide, 3-phase 550 am power, oil h/w and heat pumps

*Gateway Business Brokers operates as an independent contractor and is not an agent, employee, partner or broker of the Seller, Buyer or any other party and does not owe fiduciary duties to prospective Buyers. If the business Purchase involves a transfer of real estate, of any kind, the Buyer/Purchaser shall obtain the services of a licensed lawyer for the conveyance and land or lease transfer element(s) of the transaction.

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

Complete NDA For Full Overview
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