This is a rare opportunity to acquire a sizeable Ontario-based rental company that supplies specialized motion picture equipment to productions such as TV shows, feature films, and commercials.
Due to the nature of business, the operating gross margin to revenue ratio is in the 60th percentile, making this a highly profitable business. However, significant working capital requirements for the business are a necessity, with almost $2M of rental items at book value on the company’s financials.
The business benefits from a loyal customer base developed over years of reliable service and is primed to benefit from further growth in the film industry. The ideal buyer for this business is a complementary service provider to the production and film industry, or another specialized rental business looking to expand into this market niche.
Market multiple offers of EBITDA will be accepted for a share transaction to include a normal amount of working capital, including all rental equipment inventory.