Unique Opportunity:
Own a 100% or ~40% Stake in a Leading GTA Flooring Business
Flexible Acquisition Structure:
The Sellers are open to either a 100% sale or a partial sale of approximately 40-50%. In the partial sale scenario, the current owners will retain majority ownership, with the incoming owner staying on as an operating partner. Additionally, the seller is open to an exit plan in 3-5 years, allowing the buyer an opportunity to purchase the remaining stake in the business at that time.
Established Reputation & Diversified Customer Base in the Flooring Sector:
Founded many decades ago, this business is a well-known and respected leader in the GTA flooring industry. The business enjoys a diverse customer base, including commercial clients, homebuilders, and retail customers. Strong supplier relationships, some dating back to the company’s inception, contribute to revenue stability and growth potential. The business boasts numerous five-star reviews and high ratings on platforms such as Google and Facebook.
Solid Financial Performance:
The company has demonstrated consistent revenue, averaging approximately $5.6M annually over the past four years. The average Seller’s Discretionary Earnings (SDE) over the last two years is approximately $682K, with an SDE of around $734K in FY2023. Despite a revenue decline in 2023, the business has seen significant improvements in profitability due to enhanced operational efficiencies and cost management. The business has shown a general increase in sales trends over the past 15 years and has historically demonstrated resilience, recovering quickly from occasional dips in certain years.
Valuable Assets Included:
The business price includes approximately $900K in assets, comprising $600K in inventory and additional assets valued at approximately $300K.
Robust Revenue Model:
This full-service flooring company offers a comprehensive range of products and services, including product selection, installation, delivery, estimation, and design services. The diverse revenue streams and expansive customer base ensure stability and minimize risk. The company is recognized for providing top-notch customer service, making it a preferred choice for DIY enthusiasts, homebuilders, and contractors within its market.
Skilled Workforce and Streamlined Operations:
The business is supported by a dedicated and skilled team, essential for optimizing operations and enhancing profitability. The team includes 7 staff members, led by a Store Manager who oversees showroom operations.
Smooth Transition with a Store Manager:
Currently owned by a semi-absentee owner preparing for retirement, the business is primarily managed remotely. The owner is committed to working closely with the incoming buyer to ensure a seamless transition. The existing team is dedicated and supports operational continuity.
Potential for Significant Growth:
There is substantial potential for business growth by leveraging existing supplier and client relationships, expanding into new geographical markets, and increasing the installation division, which currently represents only 10% of revenue. The growing online sales segment also offers expansion opportunities both domestically and into the United States.
