Listing ID: S00227

Business Premises are NOT owned by the Business and are NOT included in the Sale.  Business premises are owned by myself, also the sole owner of this Business and are leased by the Business for the amount I believe to be fair market.  Business premises consist of approximately 55,000 square feet including a manufacturing floor, warehousing and sales and administration offices. Post sale, these business premises will remain available for lease by the business indefinitely at the same fair market rates.

BALANCE SHEET VALUE:  Of course, much will change on the Balance Sheet with every bit of business conducted between today and the Close of any Sale of the business, and to the extent those changes shall increase Balance Sheet Value, the Sale price shall increase or the extent those changes shall decrease Balance Sheet Value, the Sale price shall decrease, but, at at May 31, 2017, the Company is being offered for sale in a Share Sale that includes everything the Company owns and owes, with the certain following exceptions:

• As at May 31, 2017, we have EXCLUDED $133,869 from Cash on Deposit.  This amount is to offset and to pay the $133,869 in credit card payables (below) which are also to be EXCUDED from the sale.
• As at May 31, 2017, there is $17,729 shown in other current assets.  This amount is made up primarily of loan receivables; loans to employees and/or other parties and are personal and non-business related.  None of such shall remain repayable to the company following the sale and thus have been EXCLUDED from the sale.
• As at May 31, 2017 there is $131,869 payable on credit cards. Any and all credit card payables will be satisfied at or prior to the Close of Sale and are thus EXCLUDED from the Sale Price. 
• The net effect of the above combination reduces the current Net Book Value of the Balance Sheet by $17,729, as you can see in the above.

It should be noted that we have INCLUDED the $963,737 Cash in the Sale Price, which amount approximately offsets the $896,799 in Accounts Payable. Leaving that amount of cash may or may not be deemed advisable, and if not, it is anticipated that the amount exceeding acceptability would be spent just prior to the Close of Sale on the reduction of the $896,799 in Accounts Payable and wound be a direct offset. But to the greatest extend possible, cash will be left for the new owner to administer.

The $5,010,809 Selling Price is equal to 5.7 times $882,929 *ebitda (earnings).  The $5,010,809 includes $2,099,501 Net Working Capital, in which case, Selling Price minus Net Working Capital calculates into a Net Selling Price of $2.911,308 which is equal to just 3.3 times *ebitda.  (*ebitda = earnings before interest, taxes, depreciation and amortization.)

As at May 31, 2017, at 5 months year-to-date; sales are $3,684,766 with *ebitda of $565,649 (15.3%). Current year sales and *ebitda are projected to close out the year, 7 months from now, at about $7,480,244 with *ebitda of $839,775 (11.2%). That is based on a calculation very consistent with the company's historical sales and *ebitda cycle over the past five years, of first 5 months vs. last 7 months.  Sales have generally been 49% during the first 5 months and 51% during the last 7 months and over the past 5 years the company's average *ebitda has been 10.9%.

The business of the Company is the Manufacture, Importation, Installation, Service and Repair of a varied line of durable (non-perishable) hardware products.  Imported product is largely that which have been custom made offshore and to our own specifications.  In-House Manufacture and Fabricated product include that of the Company's own proprietary line of equipment, and we also custom manufacture products to the unique design specifications of our customers. Installation, service and repair in not a large part of our business, but is a part from time to time.  We also purchase and resell various products from other domestic manufacturers and distributors. Our major product lines are Imports, (which we generally call standard) and the In-house manufactured products, (we generally call custom). The products we purchase locally and resell, we call drop-ship because we generally do not stock these items but order them drop shipped to directly to our customer.  I mention this because, if you find this business of sufficient interest to go so far, you will find these descriptions in our financial records.

Since Jan 1, 2012 through May 31, 2017; 5Yr 5Mo sales have totaled $39,474,000.  Purchases by our top 500 customers have accounted for $21,221,000, equal to 54% of total sales.  Over the period, we sold product to 17,250 customer accounts; 6,200 of whom made purchases of $1,000 or greater; 800 of whom made purchases of $5,000 or greater.  The company has a great warranty track record.  Warranty issues are relatively minor and customer satisfaction is high.

Our market is largely two part; Retail and Commercial.

Our retail customers include both repeat customers and one-time customers.  Repeat customers include Dealers (resellers), Public Entities (cities, towns, clubs, schools, etc.,) and many Private Individuals.  Our commercial customers are largely repeat customers.  Since 2012, the split between the two has quite consistently been 52% Retail and 48% Commercial.

Our marketing is accomplished largely through our websites and trade shows, both in Canada and the USA.  And our customers include both Canadian and US, who contact us generally via website, telephone, email or post and whom we contact largely in follow-up with respect to the above contacts.  We have very few walk-in transactions.

I am selling the business because I have developed other business interests and after at 16 years in this business, would really just like to be free to concentrate my full time and efforts on these other business endeavors.

I founded this business in 2001 and, for the first several years, my time and effort were entirely concentrated on this business. Then I purchased another companion business in 2007 and for the next while the companion business captured much of my attention. Then in 2011 and 2012, I became involved in other non related endeavors and quite honestly, just started to lose focus on this key business that has been the engine for all else that I've done. It has take a while to come to realize and acknowledge that the keen interest and drive I once had for this business has simply deminished over time, not that I'm disintersted, but just have too many other things on my mind and this business too often gets lost.

Over the past few years, I have tried to refocus my attention on this business but it is refocusing that lasts for a short while only.  I've tried to turn management over to others, but have found it tough to actually let go and allow the team to manage, and so far that has just not worked out, although we are trying it again right now.  The business has remained profitable through it all however, but it is no longer growing, and it should be growing; there is still lots of room.
 
I think I am an entrepreneur with good concepts, with drive and high energy much more I am a good business manager administrator.  I am now realizing that[ it is undeniable as I look back and have concluded that it is simply time to sell and move on.

The business is relatively non-technical and does not take an industry specific individual to run and grow this business.  It takes a person with good business acumen and a business background, and one with some sales and marketing experience and acumen and some with new interest and drive. The company employs a very good team of long standing employees. We've had very light turnover over the years and the technical know-how is well in place amongst these employees.

Anticipating of course that in order to ensure a smooth transition of ownership and control and to assist the buyer in learning the business, any buyer will be asking for my continued involvement at some level for a reasonable period of time following the close of sale, I am fully prepared to provide such help and assistance. My hope and plan is to be totally free from this business within a year or so, although, with other business interests in the area, I have no plans to leave the area and would continue to make myself available beyond that time, on an as need, if needed basis.

CONFIDENTIALITY and NON-DISCLOSURE    Within this presentation we have told you a great deal about our business but have very deliberately taken care not to identify myself or the business either directly or indirectly by conjecture.  There is great deal more information ready and available should you be interested in pursuing the potential to purchase this Business in the intermediated manner provided through Business-Trader.
 
And, I thank you for your time and interest thus far.