Normalized Cash Flow: $97,000
What they do – the short version:
- BirdCo loads turkeys.
- They maintain ongoing relationships with turkey producers.
- Their crew arrives at the producer facility at a time coordinated with the producer and his trucker.
- Equipment is set up to safely load the birds into cages then use conveyor belts to safely move them from the barn into the waiting truck.
- The equipment is them cleaned and returned to BirdCo.
BirdCo is a custom turkey loader ensuring turkey farmers can get their birds safely onto the transport trucks that will deliver them to the processor. They have more than a decade of success servicing this industry. There are three years of financials and an up-to-date equipment list available to qualified buyers.
BirdCo will have to be moved but can be run from just about anywhere in Central Alberta that has storage for their equipment. The seller will have a policy and procedures manual to aid the transition to the new buyer.
The firm operates with a crew of five. All of them need some special training. There is group of four with a second group on call to provide the ‘5th man’.
Three of the crew could be called ‘key men’. There always must be somebody with a class five licence to drive the crew truck.
The seller estimates their labour requirements add up about 4000 hours a year. They could easily expand without the need of finding new trained staff.
The crew works Sundays through Thursday. Operational hours begin in the late afternoon and the crew is back by late evening.
Last year the crew worked 142 days.
Turkeys have some high seasonal holiday demands but are otherwise steady through out the year. Fall is their busiest period while early spring can be slow.
The firm’s equipment (included) consists of two loader conveyers and panels plus a crew truck. All is in good working condition. Business could increase without the need for new equipment.
Only the crew truck is serviced by outside sources (and is still under warranty). The seller maintains the rest of the equipment himself. This does not require any special knowledge and the new owner should be able to pick it up inside a few weeks.
The seller also performs the firm’s administration including bookkeeping and payroll. This is done using Quickbooks.
BirdCo’s customers are the producers. There five largest customers account for about 75% of their business.
The processor arranges the schedule for the crew to sync with the producer and the truckers who will haul the birds to the processor.
This is very much business servicing repeat customers. They have been servicing the same group of producers for the last decade or so.
Some have retired over the years but the firm has been able to replace them as the processor refers them to the new producers.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q. In your words, what does the firm do?
A – We move live turkeys from their barns to waiting trucks using a five man crew operating a mechanical conveyor.
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
A- Right now I work in the barn moving birds to the conveyor. I can also drive the crew truck. The firm’s administration is also part of my duties.
Q. How long will you stay after the sale to help in the transition?
A- Three months if needed.
Q Will you agree to a non-competition clause?
Q Who should by this business?
A- Someone younger and fit who does not mind working evenings.
Q. Is there anything else you think a potential buyer might want to know?
A- For the last three years we have been using a manager and I have just been doing the bookkeeping and payroll. That seemed to work well if the buyer could find a suitable manager.
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 taking any action based on this information.