The Inside Story
Project-based businesses are often difficult to sell because buyers view their future cash flows as uncertain. When a company’s success depends heavily on its owners, it adds perceived risk and can reduce valuation. The best way to counter this in anticipation of an exit is for owners to build a capable leadership team and make themselves operationally redundant, to the extent that’s possible.
Our client did exactly that, assembling a strong senior team positioned to sustain the company’s success after closing. We also found a buyer ready to assume the role of President, eliminating the need for the seller’s continued involvement, allowing them to retire. As the real estate was owned, we negotiated a new lease at market rates, setting up the sellers as the new landlords to the buyer.
With a strong lease in place and the business sold, our clients objectives were met.
Founded:
1994
Employees:
75
Affiliation:
Non-union
Revenue (CAD):
$26.4 million
EBITDA (CAD):
$6.0 million
Key Strategic Highlights
In-house Metal Fabrication
The company had in-house metal fabrication capabilities, which provided on-time component delivery, improved profitability, and allowed the company to meet the needs of various project sizes and scopes.
Trusted Industry Reputation
The company’s award-wining reputation had been built on decades of experience with installing roofing systems for customers on-time and on-budget.
Significant Capacity
A custom built 36,000 sq. ft. facility was built in 2015 to scale the business. Capacity utilization was approximately 50%, leaving ample room for additional growth.