Wholesale & Distribution
|Asking Price:$1,599,000||Revenue:$5,238,000||Cash Flow:$455,000|
Established over 30 years ago, this is one of GTA’s premier independent distributors of certain construction-related products. The business is an authorized distributor of a blue-chip manufacturer in the Ontario market place. Through its efficiency and high-quality customer service, the business has become a trusted brand and a supplier of choice for large contractors. The business has a loyal and diversified client base, which generates recurring revenue. It has also demonstrated steady top-line growth over the last five years and has consistently achieved a gross margin of over 20%. The business has effectively positioned itself for growth by carving out a niche and capitalizing on its strengths.
The business is dependent on the commercial and industrial construction industry. According to IBISWorld Canada, this industry is projected to grow at an annualized growth rate of 2.4% over the 5 years to 2023. This growth is driven by a stable commodity price environment and rising corporate profits, partially offset by higher interest rates.
This is an ideal turn-key opportunity for a corporate/ strategic buyer seeking to exploit vertical integration or expand market presence through diversification of product offerings. Additionally, an owner operator buyer with understanding of either distribution and/or construction related products would be a well-suited fit. Price guidance is at 4 x Normalized Earnings.
Asking Price: $1,599,000
Revenue (2018): $5,238,000
Normalized EBITDA (2018): $380,000
Normalized Seller’s Earnings (2018): $455,000
Working Capital (incl.): $260,000