* Included in Asking Price
For several generations, over 60 years, this wholesale company has proven itself to be an established player in their respective field in Atlantic Canada. With several exclusive lines focused on the Atlantic Canadian giftware industry, along with a long line of offerings that are ever changing based on demands of the client base. Some of those items include Pottery, Pewter, Throw Rugs & Mats, Candles & Soaps, specialty Knives, Jewelry, Books & Food items, Tartans & Scottish, T-shirts & Souvenirs.
Primary focus is NS with some customer base outside NS. The operations are managed with little to no technology, no e-commerce, and continues to benefit from grass roots marketing efforts (face to face sales) .
There is a very cooperative staff, with are a total of 4 sales staff and 8 office/warehouse staff (FT and PT). There is an RRSP sharing program, a health plan, and a long term disability plan in place for staff.
A sale could be considered without the real estate. The expected minimum equity requirement without the real estate would be $300k and $450k with the real estate.
$1.05M in most recent revenues have generated Seller's Discretionary Earnings (SDE) of $111k. SDE calculation is after normalizing for "rent" payments of $39k per annum, which is sufficient to service a commercial mortgage and provide an 8% return on the invested capital required to own this real estate.
- Fiscal year end is December 31
- Revenues and profits have been growing year over year for the past several years, with 2018 already double digit growth ahead of 2017 results.
- Over 95% of all sales are wholesale. Relocation potential.
- Average inventory levels have been shrinking, most recent YE, $443k, which only $67k of the LOC was used. Company does have a $450k LOC available. Fall is best for lowest inventory. Inventory is included in the purchase price and will be counted on closing, and pricing will adjust accordingly.
- Recent Canadian European Trade Agreement, where all products produced in Europe coming into Canada, are now duty free. Duties ranged from 7% to 18%.
Owned property included, but not required, in sale:
A two story, 6,941 square foot building, with retail, office, and warehouse/storage, with appropriate loading docks, conveyor and storage systems.
There is a 2,030 sft duplex with 2 bedroom apartments, generating $16,800 in income.
- 3 separate lots, all connected, having a combined area of 26,931 sq. ft. Zoning is C1 - Major Commercial Zone
- municipal septic and water
- As of September 2017, property taxes totalled $7263
Approximate value of $550k. Commercial mortgage at 70% LTV, 20 year amortization, 5% would require payments of $2,530/month. (see financial details above for cash flow calculations)
Seller Reference #1148
The information in this ad has been provided by the business seller or representative stated on this ad. BuyBusiness.com has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Please read our Terms of Service
before responding to any ad on our website.