Listing ID: S00224-3548spt

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 a Share Sale that includes everything the Company owns and owes, with certain following exceptions:

• As at May 31, 2017, we have EXCLUDED $133,869 from Cash on Deposit.  This amount is to offset and pay the $133,869 in credit card payables (below), also to be EXCUDED from the sale.
• As at May 31, 2017, $17,729 is shown in other current assets.  This amount is made up primarily of loan receivables; loan to employees and/or other parties connected to the owner.  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 shown to be payable on credit cards.  Any 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. The cash amount may or may not be deemed acceptable by the accountants, and if not, it is anticipated that the amount exceeding such acceptability would be spent just prior to the Close of Sale on the reduction of the $896,799 in Accounts Payable. 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 a Net Selling Price of $2.911,308 which is equal to just 3.3 times *ebitda.  *ebitda; earnings before interest, taxes, depreciation, amotization.

As at May 31, 2017, 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%), based on the company's historical sales and *ebitda cycle average, calculating first 5 months vs. last 7 months over the past five years. Such sales average has 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%.

Business Premises are NOT owned by the Business and NOT included in the Sale.  But, Business Premises are owned by the owner of this Business and are leased to the Business for what is believed to be fair market for the area. Business Premises consist of a 65,000 square feet, including manufacturing floor, warehouse and offices. Current lease expires December 31, 2020, but is extendable and renewable for any amount of time in the foreseeable future.

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 are ordered to our own specification.  In-House Manufacture and Fabricated product include that of the Company's own proprietary line of equipment as well as the unique design and manufacture/fabrication of custom product to customers’ specifications, and the installation, service and repair of same.  As well, we purchase and resell various products from other local manufacturers and distributors. Our major product lines are Imports, (which we generally call Standard) and In-house manufactured, (which we generally call Custom), although there is some crossover. The products we purchase locally and resell, we call Dropship, and if you find this business of sufficient interest to go so far, you will see these descriptions in our financial records.

Since Jan 1, 2012 through May 31, 2017; 5Yr 5Mo sales have totaled $39,474,000.  Purchases made by our top 500 customers have accounted for $21,221,000, equal to 54% or of total sales.  Over the period, we have sold product to 17,250 customer accounts; 6,200 of whom have made purchases of $1,000 or greater; 800 of whom have 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 includes 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.

The current owner/seller has other business interests and now, after at 16 years in this business, would like to sell in order to concentrate full time and efforts on the other business endeavors.

As stated above, he founded this business in 2001 and, for the first several years, his time and effort were entirely concentrated on this business. He purchased another business in 2007 and for the next while the acquisition captured much of his attention.  Then in 2011, he once again became involved in yet other endeavors and further lost focus on this key business, and the results to this business are clearly evident in material we have yet to show you.

Over the years since, he has attempted to refocus more attention on this business but refocusing generally for a short while.  He finds it tough to actually turn things over to a replacement management team and to become an absentee or a more silent owner on a day to day basis.  He is an entrepreneur with good concepts and high energy more than he is a good business manager.  He is now realizing that and thinking it is 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 would help.  The company has a very good team of employees.  Very light turnover and the technical know-how is well in place with these employees.

Anticipating that any buyer will be asking for the current owner's continued involvement at some level for a reasonable period of time following the close of sale to any buyer, in order to ensure a smooth transition of ownership and control and to assist the buyer in learning the business operations, the current owner is fully prepared to provide such.  His hope and plan is to be totally free from this business within a year or so, although with other business interests in the area, he has no plans to leave the area and would continue to make himself 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 this 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 this website.