Opportunities
Trailer Manufacturing, Painting, & Maintenance
Bank loan would be 100% collateralized from business assets!
Specifications
The bank loan would be 100% collateralized from the included business assets with the purchase of this trailer manufacturing, painting & maintenance company. Operating out of an 18k sq. ft. facility in Southern Saskatchewan, the highly skilled team does custom trailer engineering and fabrication, along with trailer maintenance, refurbishing, and supplying fabricated replacement parts. The average sale size is $52,500 per trailer; trailers include gravel, belly dump, clam shell, flat decks, and more, each with a variety of dimensions that can be customized. Refurbishing work consists of sandblasting, painting, and general welding repairs, and the company also supplies fabricated replacement parts such as stoppers, fifth wheel replacements, air cylinders, and tarps. Included in purchase price is over $313,354 worth of assets, including equipment such as band saws, jigs, a forklift, hoists, a payloader, welders, a shearer, an iron worker, a hydraulic press, trailer rotisserie stands, bench grinders, a paint system, and a Caterpillar 950 Payloader.
Sales are conducted by two dealers in Canada and the owner, with most sales being done over the phone and no travel. Personnel includes four experienced employees: 1 owner, 2 full-time welders/fabricators, and 1 full-time office/shop assistant. The current owner oversees operations, conducts some sales, and assists in the shop when needed.
The ability to customize dimensions for various trailer styles sets this business apart from competitors. Priced at $435,000, opportunities for growth include expanding the current website and social media presence to attract a wider range of customers. There is also an opportunity to take advantage of a more streamlined process through the Alberta government; instead of doing a bid system, the business could get on a short list to be approved to provide services/products on request.
Business Highlights
- Year Established: 1965
- Location: Regina, Saskatchewan (205km away)
- Service Area: Southern Saskatchewan, Canada
- Services: Custom trailer fabrication, trailer painting
- Clients: Rural municipalities, farming communities, road-pavers, gravel haulers
- Building: 60x300 ft. located on 22 acres of land; shop, office space
- Reason for Selling: Retirement planning, pursuing other (non-competitive) interests
- Personnel: 4: 1 owner, 2 FT welders/fabricators, 1 FT office/shop assistant
- Seller Training Period: 6-12 months
- Growth Opportunities: Expand website & social media presence
- Current Owner’s Responsibilities: Oversees operations, some sales, and assists in the shop when needed
Financial Highlights
- List Price: $435,000 CAD
- 2020 Cash Flow: $124,517
- A/R: $7,498
*amounts may vary
Profit Margins
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Nov 2020-Aug 2021 | P&L Statement Nov. 2019-Oct. 2020 | P&L Statement | P&L Statement | P&L Statement | P&L Statement | Notes |
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | ||
| GROSS SALES | $556,692 | $509,232 | $616,039 | $1,160,169 | $810,352 | $1,093,263 | |
| Annualized | $668,030 | ||||||
| Net Income Shown on Financial Statement | $38,969 | $20,670 | $9,274 | $-22,155 | $-42,116 | $-35,512 | |
| ADDBACKS | |||||||
| Compensation to Owner | $43,627 | $84,000 | $76,622 | $82,500 | $70,751 | $88,260 | |
| Amortization | $0 | $0 | $14,000 | $17,711 | $22,562 | $18,394 | |
| Interest | $11,167 | $18,617 | $15,854 | $16,289 | $15,999 | $18,505 | |
| Non-Business Telephone | $900 | $1,080 | $1,080 | $1,080 | $1,080 | $1,080 | $90/month |
| Donations | $0 | $150 | $0 | $0 | $0 | $0 | |
| TOTAL ADDBACKS | $55,694 | $103,847 | $107,556 | $117,580 | $110,392 | $126,239 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $94,663 | $124,517 | $116,830 | $95,425 | $68,276 | $90,727 | |
| Annualized | |||||||
| Profit Margin | 17.00 % | 24.45 % | 18.96 % | 8.23 % | 8.43 % | 8.30 % |
Clients
- Rural Municipalities
- Farming Communities
- Paving Companies
- Gravel Haulers
Services
- Fabrication of custom trailer parts
- Assembly of trailers
- Painting of trailers
- Ability to customize trailer dimensions to fit specific needs
Personnel
4: 1 owner, 2 FT welders/fabricators, 1 FT office/shop assistant
- 1 Owner: oversees operations, some sales, and assists in shop
- 1 office/shop assistant: does accounting/office services, assists as welder in shop when needed
- 2 welders/fabricators: create custom trailer parts and assemble trailers
Growth Opportunities
- Expand website and social media presence
Valuation Details
Funding Example
Funding Details
Business:
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
Loan Payments
| Monthly Payment to Bank: | $ |
| Yearly Payment to Bank: | $ |
| Monthly Payment to Seller: | $ |
| Yearly Payment to Seller: | $ |
| Total Monthly Debt Service: | $ |
| Total Yearly Debt Service: | $ |
Conclusions
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
|
Cash Flow: 2020 Cash Flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 2020 Cash Flow |
$ |
| Annual Debt Service: | -$ |
| NOI: |
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
| Down Payment: | $ |
| NOI: | |
| ROI: | % |
Attachments
| Document Title / Description |
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210 N 78th St. 2nd FloorOmaha, NE 68114
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