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Asking Price$977,989
RevenueUndisclosed Established1960
Cash FlowUndisclosed EmployeesUndisclosed
FF&EUndisclosed FranchiseNo
InventoryUndisclosed RelocatableNo
Real EstateUndisclosed Home-basedNo
* Included in Asking Price
Location
Nova Scotia

Description (All $'s are Canadian)

Over 60 years and several generations later, this wholesale company has proven itself to be an established player in their respective field in Atlantic Canada, with several exclusive lines and products focused on the Atlantic Canadian giftware industry, Some of those items include Pottery, Pewter, Throw Rugs & Mats, Candles & Soaps, specialty Knives, Jewelry, Books & Food items, Tartans & Scottish, T-shirts & Souvenirs.

In November 2017, the Canadian Government made the announcement that CETA - Canadian European Trade Agreement - will come into effect, by which most goods originating in the European Union will enter Canada DUTY FREE.
With a majority of the business' products coming from the UK, this reduction in duty goes directly to the bottom line. Duties ranged from 7% to 18%. This free duty will increase profit considerably as of 2018.

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 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.

Direct access to major highway.

Financial Information

$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.

Minimum Equity Required
$520,000 CAD

Real Estate

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 sqft 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)

Price
$1,299,000 CAD
Ad #108468
Seller Reference #1155
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.
Contact This Seller
Tim Blais, BBA, CMEA
Gateway Business Brokers
1-902-441-9589
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