This manufacturer designs and fabricates racking and
cabinetry systems across Canada and the United States.
Established in Toronto for over 50 years, this fabrication
business has experienced significant growth and success in
the industry. With over $1,000,000 in upcoming work, the
company continues to expand its market presence and
customer base. Their client base consists of IT companies,
cabling contractors, distributors, data centers, and financial
institutions – 70% is direct to the end user and 30 % is to
distributors. They work with 40 to 50 clients annually. The
company operates from a spacious 29,000 square foot facility
that houses a design center, and production area. The
company has 24 full-time staff members, including 16 skilled
craftsmen in the shop and 6 administrative personnel in the
office, and 2 in leadership. They do not do any installation or
wiring of products. The owner is not involved in the business,
providing minimal oversight as he has a team of experienced
managers and employees who run the day-to-day operations.
The seller has offered to carry 15% of the purchase price in
addition to a 6-month training period in order to provide a
seamless transition. Equipment and Inventory included is
valued at $939,429, plus AR for the buyer’s working capital is
$145,000. In addition, they boast a work in progress of
$650,000 with a backlog of $1,200,000!
Priced at $4,200,000, this business is primed and ready for a
new owner to step in and enjoy a reputation that has been
built over the past 50 years. A 15% down payment of
$630,000, will return $792,611 in the first year after debt
payments!