PEngCo is a buyer

Engineering partnership is a buyer and can pay up to $3 million all in.

They are looking for:

  • gearsAn established and profitable engineering related company with a purchase total price in $1.5 to 3.0 million range.
  • Discretionary cash flow (NCF) > $500,000.
  • Company located in Greater Edmonton area or relocatable to same.
  • Company may be directly involved in the Oil & Gas sector but that is definitely not a requirment.
  • Ideal scenario:
    • Current owner is retiring
    • Business is solid and stable but could use a push to expand or modernize
    • Involves or requires new technology
    • Does not include real estate unless critical to business and minor component of price
    • Not reliant on specific skills of single owner or owner can transfer skills

About the buyers:

Two professional engineers (APEGA members) with:

  • More than 55 years combined experience in Alberta and international businesses, including startups.
  • Operations, development, efficiency and performance management experience in Oil & Gas and Shipping and Logistics sectors.
  • Extensive administrative, management and business development experience.
  • Skills to deal with complex, technical aspects of any business.
  • Currently hold sufficient funding for a material business acquisition and are working with BDC and others to leverage further as needed.
  • Life-long Albertans living in the Greater Edmonton area.

Next Steps for a potential seller . . .

I’m the guy in the middle. At this stage, neither party has to know who the other is. All the buyer needs at this point is a brief description of your business, your product line and your revenues.

If he is still interested, he’ll need to know your normalized cash flow to assess value. Your banker or accountant can do this for you (but may charge you). Or you can send me your latest tax filing or income statement with any identifying information blacked out.

I will come up with your normalized cash flow (maybe needing some clarification as I delve deeper) and my take on the market value of your firm.

You will take this number to your banker or accountant to verify it is within the range of completed deals they see pass over their desks.

If we get everybody on side on value and products, you and the buyers can sit down and discuss operations and other matters until one of you walks away or the buyer is ready to propose a deal.

David Page | An Alberta Business Broker

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