Asking Price: $15,000,000

Gross Revenue: $55,000,000

Cash Flow: $3,800,000

Inventory: $21,000,000 (Not Included in Asking Price)

FF&E: $600,000 (Included in Asking Price)

Real Estate: $2,700,000 (Included in Asking Price)

This is a very profitable premium heavy equipment dealership operating in the three Canadian Maritime Provinces of New Brunswick, Nova Scotia and Prince Edward Island. The company has achieved revenues in excess of $55 million for past two years. More significant is the fact the dealership has been profitable for the past 16 years.
The company’s 70 employees serve a number of industry sectors with the emphasis being place upon Maritime Canada’s booming construction sector. The company is also seeing a steady and growing stream of revenues (30%) coming from the highly profitable parts and service business.
The EBITDO runs between $3-4 million each year. The owners / executives have an exceptional compensation package that includes a significant shareholder bonus being declared in many of the years.
The manufacturer’s brand is very strong here in the region as it is around the world. A partnership with this manufacturer is a well proven formula for success and this dealership is living proof of that. The manufacturer has a long history of strong support for their dealers in terms of innovation and new products and services year in and year out. The company offers a broad range of products and services that assist the business weather economic down turns in any one sector and consistently be profitable every year over the past 16 years.
The management / owners want to retire and they are willing to work with the new owners and the manufacturer for a period of time to ensure a successful transition of the dealership. Head office can be relocated to anywhere in the Maritime region.
The company’s operating assets, including goodwill, are valued at $15 million CAD. The sale transaction will be structured as a sale of shares with the price being adjusted to reflect the balance sheet at the time of closing.

Year Established: 1978

Employees: 70 full time -

Facilities: Included in the price are the buildings and land in 4 locations. Also included is a fleet of 28 company vehicles. The inventory of equipment, parts and supplies worth approximately $21 million is also being sold (not included in price).

Market Outlook and Competition: Pros: The dealership is growing its revenue base through aggressive sales and marketing in one of the market sectors it serves to take advantage of the strong increase in the number of projects taking place or forecasted to take place over the next 1-2 years. The company is also taking advantage of a large installed base of the manufacturer’s equipment in the area and growing the profitable parts and service side of the business. Cons: One of the dealership’s sectors served has been soft for the past two years and forecasted to continue for the next little while. There are a number of major competitors in the marketplace. Pros: One of the two major sectors served is experiencing and it is forecasted strong growth for the next few years. The dealership continues to grow its parts and service portion of the business. Cons: One of the two major sectors served is soft with no expected changes for the next few years.

Management Training and Support: The working owners are willing to stay on for a specific period of time to ensure a successful transition of the business. The manufacturer / distributor have a very successful dealer program and have already indicated it will work very closely with the new owners to ensure a successful transition as well.

Reason For Selling: The working owners want to retire and pursue other activities at this stage in their lives.