WeldingCo | A Winnipeg Mobile Welding Firm

 

Price: $795,000

Normalized Cash Flow: $270,000

What they do – the short version

  • Winnipeg mobile welding firm.
  • Long established.WeldingCo
  • Many repeat customers
  • Busy all year round
  • CWB Certified Division 2
  • Quality Assurance Program
  • Owner will stay on for a period of time.

Summary

Welding Co is a Mobile welding business which has been operating for over 40 years.

This company is known for its high quality custom fabrication and mobile welding repairs, heavy duty equipment repairs, high pressure pipe welding in both carbon and stainless steel , structural welding, stainless steel,  cast iron,  and  aluminum welding.

This firm is CWB Certified Division 2, and has a Quality Assurance Program in place.

This will be a share sale. There are three years of complete financials available for qualified buyers as well as an up-to-date equipment list.

This is a great opportunity for an established Alberta welding firm to expand into a more steady manufacturing economy in order to diversify outside the ups & downs of the Alberta oil patch.

Operations

This co runs a  Professional Mobile welding business performing welding repairs or custom fabrication on various job sites.

Essentially 80% of their materials purchased are provided by their top five suppliers. The materials required to complete each job are delivered to the job site unless there is some pre-fabrication required.

The mobile welding rigs are well equipped with supplies to complete several jobs in a day or week.

Besides the owner operator, their staff consists of  two or three full-time employees and as many as 8 employees depending on the size of the job.

The  employees of this company hold government certifications in welding such as CWB structural- all position, B pressure pipe tickets – in carbon and stainless steel  (F3/F4) & F6 for stainless), various Safety tickets including Fall arrest, WHMIS,  Confined space entry, and Elevated work platform. All employees must hold a valid Driver’s License with No Restrictions.

The seller’s records show their 2017 manpower requirements ran just over 4000 hours for two full time employees and two part time admin staff.

Business is steady through-out the year with little or no seasonal influences.  Some years November and December are somewhat slower.

The Seller believes the business could grow without the need for more staff.

The business comes with two well maintained mobile welding rigs.

All our journeyman welders must pass a Manitoba government test each year. All potential welders are pretested by the owner. This contributes to our high quality of welding and professional workmanship.

Maintenance is done both in-house and by professional trades and service companies when needed. They will be sold in good operating condition.

The Seller believes the business could grow without the need of additional equipment.

Administration of the business is efficiently run by the owner and 2 part-time office employees.

There is a safety program in place.

This welding co has an excellent record with WCB and has had no claims. 

Customer Base

Their customer base comes from referrals, 42 years of contacts, Google Ads, Yellow Page ads, Kijiji, and other select advertising. They also have their own web site.

The Seller estimates that 80% of their business is repeat.

He also estimates that 60% of their business comes from their top five customers.

Further Information

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

Management Discussion

Q. Why you are selling?

A: I want to pursue a new career.

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

A: We provide a high quality welding service in Manitoba for 42 years.

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

A: Estimating, Sales, Training, Billing, & Managing.

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

A: 4-6 months.

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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