Business Location: British Columbia
Postal Code: V3S
The business earned $750,000 last year; $1,661,000 this year; projecting $1,600,000+ next year. Company is offered in a Share Sale for $3,239,844 including a $1,684,866 Balance Sheet with $1,383,194 Working Capital, and $1,554,978 Goodwill.
Seller is offering 33% Vendor Take Back financing.
The business is metal fabrication & installation, service & repair. 10 mo y-t-d (Jul 31) sales were $8,357,108 with earnings of $1,661,518. Sales will exceed $9,500,000 by Sept 30 year-end.
Additionally, open contracts currently in process will carry $4-$5million into next year, plus about $3million in new contracts now scheduled for next year, provide a $7-$8million jump start to next year’s sales.
Sale Price is $3,239,844, but ’at Buyers option’ Net Sale Price could be as low as $2,219,262 or as high as $5,182,168, or anywhere between, depending on the level of A/R included in the Sale Price.
On July 31, A/R totaled $3,884,647. Sale Price is based on including half and excluding half to be retained by Seller. All A/R are considered good and collectable, and any and all included in the Sale Price will be guaranteed collectable. Exclusion of some A/R is just to make the purchase easier.
Markets are lumber mills, mining operations, recycling plants, pellet plants, grain elevators, bulk materials handling facilities, and other manufacturing plants, etc.
WorkSafe mandates following two mill explosions in BC in 2012 increased demand for Company products and services, last year, continuing into current year, and for the next two or more years in the upgrade and installation phases, and expectantly for years to come in ongoing maintenance and service.
INCLUDED in the Price ：
•Sale Price $3,239,844 • 33% VTB; $1,069,148 • 67% Cash to Close; $2,170,696
•last year earnings $750,000 • this yr $1,661,000 • project nxt yr $1,600,000+
•Sale Price includes $1,554,978 Goodwill and $1,684,866 Balance Sheet Value
•Goodwill is equal to this year’s earnings, …or to next year’s projected earnings
•Balance Sheet includes $1,383,194 in working capital.
•* * * * * * the logic behind next year’s earnings projections * * * * * *
•At 10 mo y-t-d, current year sales are $8,357,108, with $1,661,518 earnings
•Sales already booked for delivery and next year invoicing, total $7-$8,000,000
•On that basis, next year earnings are projected to exceed $1,600,000
Current sales levels expected to continue next two or more years.
The above Balance Sheet value is calculated as at Jul 31, and is subject to daily changes between Jul 31 and the Close of Sale. To the extent Balance Sheet value as at the Close will be greater, Sale Price will be greater. To the extent Balance Sheet value as at the Close will be less, Sale Price will be less.
50% of the Company’s total A/R are included, all of which are under 90 days, and all such will be guaranteed collectable.
EXCLUDED from the Price ：
xcluded from the Balance Sheet, and thus from the Sale Price, are:
• cash on deposit,
• bank debt and/or line of credit,
• 50% of total Accounts Receivable, (or as otherwise at Buyer’s option)
• amounts owed to and by shareholders and/or shareholder affiliates, and
• allowances for doubtful accounts, since A/R guaranteed collectable.
All such excluded assets are to be retained by Seller and all such excluded liabilities to be satisfied by Seller prior to the Sale.
No real estate. Leased Premises.
OPTIONAL & EXTRAS ：
Sellers are prepared to remain with the Company one year to help ensure a smooth transition and help the Company pay for itself.
Contact the boker( Agent)