BearCo Glass

 

BearCo Glass
Jasper National Park

bearcoglass

Come for the view-Stay for the lifestyle

Price: $215,000

Normalized Cash Flow: $71,500

What they do – the short version

  • BearCo is a full service dealer & installer of all kinds of glass.
  • Small inventory since most items have to be custom ordered.
  • All hand and power tools are of high quality professional brand names.
  • Seller runs the shop on his own.
  • Seller will train the new buyer.
  • Ideal way to retire to a resort community with residence restrictions.

Summary

BearCo Glass is the only glass firm in this busy Alberta resort town.

The firm was established by the seller over 20 years ago.

Three years of complete financials and a full equipment list is available for qualified buyers.

The owner will also help train the new buyers and leave a policy and procedures manual to help the new owner with the business.

Operations

BearCo is a full service glass operation. They supply and install Windows, doors & related hardware

  • Metal Cladding
  • Auto Glass
  • Mirror & plexiglass
  • Sealed units, screens (repair & new)
  • Window Tinting
  • Custom shower doors

They are located in a small shop in an industrial park. There is ample parking for customers and supplier’s delivery vehicles plus secure parking.

Other than an outside bookkeeper, this is a one-man business. The owner does everything. The Seller figures he puts about 2000 hours a year into the business. They are closed on Saturdays.

His management plan is based on being organized as well as working with reputable & organized suppliers. He says that is the key plus ‘pay-as-you go‘ with customers. That eliminates a lot of time spent on administration.

The seller also maintains his own equipment. Some is still under warranty. All equipment will be sold in good working order.

There is a new 5-year lease with the option to renew for the shop.

The seller feels business can increase without hiring more staff.

Eighty percent of their purchases come form their top 5 suppliers. Most of these are in Edmonton.

Inventory is minimal in the glass business since so much of their sales requires custom products.

BearCo has not had warranty issues.

There is a safety program in place. The firm as never had a WCB claim.

Customer Base

Customer receive their service or products in person. Most are repeats or referrals.

New customers come mostly from word-of-mouth.

There is some customer concentration in that their top 5 customers likely account for 60 percent of sales

Further Information

Three years of financial statements and a complete equipment list is available for qualified buyers.

Management Discussion

Q. In your words, what does the firm do?

A. Service the customer.

Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?

A. Owner does everything and anything to do with glass, windows & doors, hardware, metal cladding – start to finish!

Q. How long will you stay after the sale to help in the transition?

A. That will be negotiated.

Q. Can you estimate what it would cost for a competitor to start up?

A. Estimate for competitor to start up – around $265,000. Plus what it costs to stay open until there’s enough customers.

Q. Have the accounts receivable been purged of bad debts? (This will is really a lawyer question).

A.   In the last 2 yrs plus, every penny invoiced out has been collected!  All accounts receivable are current. Everything is collected within 30 days. There are no bad debts.

Q. Will you agree to a non-competition clause?

A. Yes.

Interested? Next steps:

1. Fax / scan the non-disclosure document 
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal

NOTICE

The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.

David Page | An Alberta Business Broker

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