GARAGECo Sales & Installations
Three Year Average Normalized Cash Flow: $614,000
GarageCo Sales & Installation is an Industry Leader; a niche market business providing a specialized service to a targeted audience of mid to high income residential customers.
With exclusive territories and supplier preference earned from performance, GarageCo Sales & Installation has the Edmonton and surrounding area territory for the highest quality, most desired products available in the industry.
GarageCo Sales & Installation has maintained more than twelve years of proven success demonstrated through customer satisfaction, sales and profits by following specific procedures developed by ownership. This unique proprietary delivery system provides customer guidance, design and quote thru to securing the sale, to product production, installation and administration.
Growth potential! Revenue expansion!
In addition to years of demonstrated revenues, there are untapped revenue streams also available using the same infrastructure.
1 – A product line not yet included is available with the same vendor territory advantage. Adding this product line by creating another division would multiply revenues and profits.
2 – There is a commercial market segment that has not been entered; a potential division that would also multiply revenues and profits.
An Edmonton Sales and Installation service for customers in a specific market segment.
Full equipment list and past financials are available to qualified buyers.
A qualified Buyer will need . . .
- To replace departing ownership skill sets in administration and installation supervision
- Vendor credit history to assume vendor relationships or sufficient working capital to meet supplier credit terms
- Sufficient financial capacity “in place” for the purchase and cash flow
A profitable leader in a niche market tied to a particular “supply & installation” service.
Currently, they work out of a 12,000 sqft. facility. Their lease expires in late 2017 and has a transferable renewal clause.
This location has a retail storefront showroom, offices, lunch room attached to a warehouse, is well signed with easy customer access and good customer parking. All deliveries arrive by truck to their easily accessible loading dock in a large yard secured with a monitored alarm system. Wiring is in place for cameras inside and out. There is no issue accommodating any size delivery vehicles.
GarageCo Sales & Installation has a policy and procedures manual in place to smooth the transition to new ownership.
Their significant semi-custom order component lowers inventory holding cost and reduces cash flow requirements. Inventory (extra) runs in the low six figures. Their large “semi”-custom sales component means a lower on-hand inventory and faster delivery, compared to a “full” custom product offering.
Staff is as many as two installation crews, Installation Manager, General/Sales/Office Manager and two sales and warehouse staff. There is room for more staff as sales grow. There is currently experienced staff in administration, production and installs.
All Current Staff have been with the business for two years or more.
Their slowest period is January / February and their busiest times are the Spring and Fall, then Summer.
All the firm’s equipment will be sold in good working order. It is all ‘over warranty’. It has been well maintained personally by the current owner.
There are no hazardous material on hand. There is a small amount of paint thinner and the propane for the forklift is kept outside. Their WCB history is good with no penalties on record.
GarageCo Sales & Installation warranties are minimal and they charge for labour and travel. Non-warranty repairs are also charged for product. In essence, warranty work contributes to revenue.
GarageCo Sales & Installation customers are mostly attracted to their store through their on-line advertising presence. In the past, they spent big money on newspapers and magazines but now almost all their advertising is on-line. Leads are generated by on-line search, ads and the constant referrals earned from more than 12 years of customer satisfaction.
GarageCo Sales & Installation has a great main website meeting current design criteria, is mobile friendly and has enjoyed first page organic ranking in all main categories for more than 12 years. There is a second website that is two years old, specific to one offering, with top organic ranking as well. Recently a landing page was also created that is for Twitter and social media. Since their web site designer is also a programmer, customers find these sites a delight to visit.
The company owns 41 domain names (some that could be sold), name copyrights and slogan copyrights.
Most of their business is new sales because of the nature of their offerings. They have been around long enough to also enjoy a lot of referrals.
Financial statements and a complete equipment list are available for qualified buyers.
Accounts receivable has no bad debts and all receivables listed have deposits and dates of delivery or installation.
Q. Why you are selling?
Founders are ready to retire.
Q. In your words, what does the firm do?
Sales & Installation in Edmonton and surrounding area selling a specific high quality product and installation service to a niche customer market segment.
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
Owner 1: Currently acting as Installation Manager/ Estimator. The Estimator travels to the job site to measure and view location, then returns to office and creates a scale layout and computer drawing, then hands off to the sales staff. He also manages installers, oversees warehouse, warehouse product, equipment repair and maintenance, monitor & order product for warehouse & installations and is the product technical advisor. This can be hired as one position and has been in the past.
Owner 2: Currently General/Sales Manager: oversee and manage company operations, sales staff, quotes & accounts, scheduling, accounting monitoring, inventory control, vendor and customer relations, HR and advertising. This can be hired as one position and has been in the past while using a part-time bookkeeper.
Q. How long will you stay after the sale to help in the transition?
This will be a matter of negotiation.
Q. Can you estimate what it would cost for a competitor to start up?
GarageCo Sales & Installation’s many years developing this business has given them considerable knowledge and advantage that would take any start up more than five years to catch up to.
A start up in this industry can’t start at this level, since the firm manages multiple product and service offerings that were added, developed and matured over more than 12 years. With vendor buying power, exclusivity and supplier preference earned from performance GarageCo Sales & Installation has the Edmonton and surrounding area territory to all the best products available in this industry.
There are no comparable competitors in Edmonton. There are a handful of small companies offering a very small selection in each product category that work as jobs are secured, not five days a week, all year. None have a store front location with full time employees; they contract out, or do all company functions themselves.
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
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