TopCo Cabinets

 

Price: $360,000

Earnings $120,000

Terms may available to qualified buyers

 

What they do – the short version:

  • Source customers looking for TopCo Cabinetsquality cabinets
  • Do up drawings to customer needs.
  • Receive approval from the customer
  • Build the cabinets to the customer’s specs.
  • Install the cabinets.
  • Customer provides payment

Summary

TopCo Cabinets are a six-year-old Edmonton cabinet firm with experienced staff to manufacture and install their own cabinets. Their product range runs from home kitchens and TV rooms to dentists offices.

Recent financials and an up-to-date equipment list are available for qualified buyers.

Operations

TopCo is located in one of Edmonton’s industrial areas. There lease runs to January 2020.

The seller estimates that their top five suppliers provide 90 percent of their needs. Supplier orders are placed as needed and just about all arrives inside two days.

This means their materials inventory usually runs at less than $10,000 or two weeks of normal draw downs.

They have a fully trained staff of three. The seller estimates that two are ‘key men’.

Their business is fairly balanced through out the year slowing down somewhat in the winter months.

All their equipment is well maintained in-house and in good working order.

The seller thinks their business could increase without the need for new equipment.

There is a safety program in place.

The books are kept by their accountant using QuickBooks.

TopCo has never had any WCB claims.

Their products are sold with a two-year warranty. There has never been a warranty claim

Customer Base

 New customers come from their website, the Yellow Pages, their advertising in the papers and ‘word of mouth’.

Their products carry a two-year warranty. They have never had a warranty claim.

Further Information

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

Management Discussion

Q Why you are selling?

A. Focus on my other company

Q In your words, what does the firm do?

A. Supply and install cabinets

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

A. quoting, sales,  . . .

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

A. negotiable

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

A. $300k minimum and then he’d have to build a customer base.

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.

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David Page | An Alberta Business Broker

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