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Manufacturer of IT Racking Systems

All B2B clients with 70% in Canada and 30% in the US!

CASH FLOW
$699,943

Specifications

  • Price
    $2,575,000

  • Revenue
    $3,787,126

  • Profit Margin
    19%

  • Cash Flow
    $699,943

  • Inventory
    $443,129

  • Reason for Sale
    Strategic retirement planning

  • Location
    Greater Toronto Area

  • Service Area
    Greater Toronto Area, national Canadian business (70%); United States (30%)

  • Equipment
    $224,880

  • Lease
    Very large production facility and midsize office in an industrial building

  • Employees
    26: 20 in the shop, 6 in the office (average tenure is 6+ years)

  • Intangible Assets
    Long-term customer relationships, positive reputation in the industry, well-trained team, reliable subcontractors

 

 

This manufacturer designs and fabricates racking and cabinetry systems across Canada (70%) and the United States (30%). The company has 26 full-time staff members, including 20 skilled craftsmen in the shop and 6 administrative personnel in the office. Their client base consists of all B2B clients with a focus on IT companies, cabling contractors, distributors, data centers, and financial institutions – 70% is direct to the end user and 30 % is to distributors. The company's services include customdesigned and manufactured racking and cabinetry for IT equipment, servers, telecom systems, routers, and modems. Additionally, they offer custom desking solutions for the financial industry, IT industry, office spaces, trading floors, command and control centers, and security offices. The company operates from a spacious 26,000 square foot facility that houses a design center, and production area. The current owner is looking to retire. The owner is not involved in the business, providing oversight and approving financials and has a team of experienced managers and employees who run the day-to-day operations. The seller has offered to carry 20% of the purchase price in addition to a 3–6-month training period in order to provide a seamless transition. Priced at $2,575,000, this business is primed and ready for a new owner to step in and enjoy a reputation that has been built over the past 45 years. A 20% down payment of $515,000 will return $407,479 in the first year after debt payments! An 79% return on investment!

 

 

Personnel

Total personnel: 26

  • 20 Work in the shop
  • 6 Work in the office

There are dealers in place in the US and Canada, along with local distributors.  Details can be provided once under contract.

Growth Opportunities

  • Build the desking business and develop new customers for this division
  • Maximize utilization of assets and technology for maximum capacity
  • Increase the team in response to added capacity

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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f 402.939.0857

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.