Condo & Industrial Focused Architecture Firm in Toronto
Amazing comeback after COVID – selling at only a 3 multiple!
This architecture firm in Toronto has a focus largely on condominiums and the industrial sector. They have seen a tremendous comeback after COVID in 2021 and are still selling at just a 3x multiple! A solid team is already in place; the staff of 7 works out of a 2,500 square foot office and includes the owner/architect, 1 Senior Architect, 2 Mid-Level Architects, 2 Senior Technologists, and 1 Mid-Level Technologist. The team is highly educated and experienced at their craft, allowing for solid word-of-mouth referrals and a loyal, recurring client base of developers, engineers, and general contractors. This firm has been serving the Greater Toronto Area since 2000; their portfolio primarily consists of condominiums (80%), and includes commercial, industrial, institutional, and interiors. Their spectacular designs are well-known throughout the Toronto area.
Priced at $1,325,000, this is an incredible opportunity for a new owner to step in and focus on recruiting and business development, while partnering with the current owner to expand the business. Most clients are obtained through word-of-mouth referrals and are often repeat clients, proving this firm’s commitment to listening and working collaboratively with their clients throughout the projects. This partnership will result in more work being sought after and more projects brought into the fold, giving great potential for increased revenue and business expansion.
- Year Established: 2000
- Location: Toronto
- Service Area: Greater Toronto Area
- Services: Full-service architecture firm, primarily specializing in condominiums (80%); industrial sector, retail, mid to high-rise residential, interiors
- Clients: Developers, Engineers, General Contractors
- Lease: 2,500 sq. ft. office
- Reason for Selling: Owner wants to build up the business (will roll 15% equity if buyer allows)
- Personnel: 7; 1 owner/architect + 3 Architects and 3 Architectural Technologists
- Seller Training Period: 3-5 years
- Growth Opportunities: Expand the business by working as a partnership and increasing number of projects
- Current Owner’s Responsibilities: Design & Execute projects, Business Development
- List Price: $1,325,000 CAD
- 2021 Annualized Cash Flow: $440,883
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|P&L Statement||P&L Statement||P&L Statement||Notes|
|Net Income Shown on Financial Statement||$188,747||$29,043||$341,944||$244,989|
|Compensation to Owner||$146,667||$95,000||$50,000||$27,000||Would like to stay on board|
|11% Tax on total W2 Salaries||$16,133||$10,450||$5,500||$2,970|
|Life Insurance||$4,950||$5,400||$5,400||$5,400||$450/month for personal life insurance|
|Contributions/Donations||$0||$0||$0||$0||Non-onward going expense|
|Salary||$-91,667||$-100,000||$-100,000||$-100,000||To keep owner in place|
|Meals & Entertainment||$5,276||$6,155||$0||$0|
|Computer Expenses||$8,000||$0||$0||$0||Purchase new computers for staff - non onward-going|
|Dues/Subscriptions||$1,600||$0||$0||$0||Upgraded software packages - non onward-going|
|Seller's Cash Flow = Total Addbacks + Net Income||$293,922||$63,504||$346,279||$221,189|
|Profit Margin||37.51 %||12.18 %||30.49 %||21.83 %|
2020 was an anomaly year due to projects being put on hold. Around March 2020, two of their scheduled projects for the year were cancelled due to the unpredictable financial forecast. This forced them to downsize for a short period.
- General Contractors
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Residential (primarily condominiums)
- 1 owner
- 2 architects
- 2 architectural draftsmen
- 1 intern
- Expand the business by working as a partnership and increasing the number of projects
|Document Title / Description|
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