Business Summary

ABOUT THE LISTING
For nearly 25 years, this well established specialty manufacturing team has proven itself to be creative, flexible, and reliable in the various projects they have undertaken. Their capabilities to adapt to changes and opportunities are deeply storied, and often quite exciting.

You will like this company for it's "Yes we can" attitude and all that comes to those who are open and flexible to the many unique opportunities that exist.

Today, they have just begun one of their most rewarding projects yet. In just 8 weeks (as of July 31, 2023) since committing to their next product variation, the company has secured over $2MM in sales (50% down upfront payment) for a specific line of boat that delivers incredible margins, which is supported by a longstanding proven track record in its specific space, and a offers a market demand that many would agree is well in excess of $50MM per year. They have only just begun to scratch the surface and it's come at a time when the owner was preparing for retirement. Timing is everything and we are in search of the right buyer who is experienced and capitalized to reap the rewards of what is waiting.

Highlights:
- Buyer must have at least $2MM cash available, otherwise this deal won't make sense. We're structuring it as an initial purchase segment that is representative of historical operations, and balance of purchase based on future sales achieved over a predetermined timeframe. $3.09MM asking price is indicative of historical operations.
- Gross Margins as high as 80%
- 2023/24 revenue projections of $4.1MM with SDE of $2.27MM
- real estate included (approximately 20,000 sft across 1.5 acres)
- 12 staff
- various manufacturing disciplines and all equipment to support
- Owner (seller) not required "in" the business

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 offering price considers Working Capital to be adjusted at $0 at the time of sale. As such, an additional $150k should be anticipated, by way of equity and/or financing. Any clarification, we're here to help.

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.

FINANCIAL INFORMATION
Historical Annual Revenues and Seller's Discretionary Earnings:
*Fiscal year-end is February 28. For the year 2023, the in-house financial statement from the owner have been used.

2024 Projections (new line of boats added, 50 pre sold in first 8 weeks with average price of $40k)
Revenue: $4,100,000
SDE: $2,270,000

2023
Revenue: $2,450,000
SDE: $650,000

2022
Revenue: $2,465,000
SDE: $550,000

2021
Revenue: $1,370,000
SDE: $25,000

2020
Revenue: $2,530,000
SDE: $980,000

Balance Sheet Items: Working Capital can range from $500k - $750k at any given time. There are numerous capital assets owned by the company that would be considered excess assets, negotiable.

SDE is calculated with the inclusion of a Fair Market Value rent expense of $55,000 which is sufficient to carry a mortgage of approximately $600,000. 2023 SDE of $647k is after $55k 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
The business operates from 4 shops situated on approximately 1.5 acres and comprising approximately 20,000 sq. ft. of manufacturing space, along with 1 rented office space (family). The business administration can be operated in a home office, rented space, or from the existing business.

Anticipated market value of the real estate is in the $700k+ range.

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

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