Being a manufacturer for components in the construction industry focusing on residential housing, the demand for its products and services are strong and expected to remain strong for the long term. The country, and more specifically the region this company services, is experiencing severe housing shortages that are expected to continue for some time. The region is one of the most sought-after regions in Canada to live. The demographic is higher end net worth individuals. With either new construction or renovations, this manufacturer provides products that are in high demand.
This company has been in business for over 45 years and is experiencing some of the most profitable periods as they have streamlined their business model to focus on the market demographic they have found most desirable.
The buyer does not need any special skills, but base knowledge in the construction industry would be a benefit. There are managers in place for the different divisions of the company, and there is someone internal that could replace the departing owner that manages the business.
This business is not seasonal but does have a busier period during the peak construction season from March to October. The company is generally booked 6+ weeks in advance of delivery which makes the flow through very efficient. This is reflected in the high turnover inventory rate which 8.5X stocked inventory levels. The business takes deposits on all orders, and only manufactures confirmed orders which makes it a very clean business that has no excess manufactured inventory.
Whether you want to be part of the daily activities of this exciting business, or a more passive investor, or are in an industry related business looking to diversify, this could be a great opportunity for you.
The business stocks on average of $1,100,000 of inventory, but this fluctuates slightly depending on the time of the year. The Normal Working Capital is $850,000, which is included in the asking price.
The company owns properties, 4 titles in total. It also has excess space and leases this excess space out for a little more than $100,000 annually. 2024 tax assessment is $6,654,000 and the seller believes the market value exceeds the assessment. The vendors are open to offers.
