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Multi-Family & Commercially Focused Architectural Firm

Sold

Providing full architectural services throughout the Lower Mainland

CASH FLOW
$875,675

Specifications

  • Price
    $2,627,000

  • Revenue
    $2,441,074

  • Equipment
    $231,853

  • Location
    British Columbia

  • Profit Margin
    36%

  • Reason for Sale
    Retirement Planning

  • Employees
    11: Office manager, 1 Associate Project Architect, 1 Graduate Architect, 4 Intern Architects, 2 Senior Building Technologists; 1 Intermediate Technologist; 1 Interior Designer

  • Intangible Assets
    Long-term client relationships, quality design excellence, reliability and thorough documentation

  • Lease
    2,857 sq. feet: Main reception and waiting area; Board room (seats 15); Private office; Office space (12 workstations); Storage and supply rooms; Server room; Staff area and break room

Multi-family, mixed use and commercial work is the primary focus of this British Columbia based architectural firm. Established for 26 years, they are licensed and registered in British Columbia, Alberta, Saskatchewan, and Ontario. Services include programming, site analysis, site planning, land use feasibility studies and public design consultations

 

This team of 11 expertly manages multi-year projects with a contract value ranging from $500,000 to $2.65MM. The firm’s scope includes office, educational, retail, community, multi-family residential, recreational and hospitality. With a significant portfolio of completed projects throughout the Lower Mainland and B.C., this firm boasts a strong reputation for their quality of designs, long-term client relationships and reliability.

 

The 2,857 sq. ft. clean industrial office space includes a main reception and waiting area, board room (seats 15), private office, 12 workstations, storage and supply rooms, server room, staff area and break room. Clients and employees have ready access to the building as it is visible off the main highway and is close to rapid transit.

 

Growth opportunities include increasing the number of employees to take on more projects throughout Canada and internationally.

Business Highlights

  • Year Established: 1993
  • Location: British Columbia
  • Service Area: 90% Local, 5% Regional, 5% International
  • Services:  Full architectural services including programming, site analysis, site planning, and interior design consultations
  • Demographics: Office, educational, retail, community, multi-family residential, recreational and hospitality
  • Lease: 2,857 sq. feet: Main reception and waiting area; Board room (seats 15); Private office; Office space (12 workstations); Storage and supply rooms; Server room; Staff area and break room
  • Reason for Selling: Retirement planning
  • Employees: 11: Office manager, 1 Associate Project Architect, 1 Graduate Architect, 4 Intern Architects, 2 Senior Building Technologists; 1 Intermediate Technologist; 1 Interior Designer
  • Hours: M-F 8:30-5:30
  • Seller Training Period: 1-2 years if needed
  • Growth Opportunities: Increase staff capacity to take on more projects
  • Current Owner’s Responsibilities: Bidding, oversight and client relations

Financial Highlights

  • List Price: $2,627,000 CAD
  • Gross Sales:
    • 2018: $2,441,074
  • Cash Flow:
    • 2018: $875,675
  • Assets Included in Purchase*
    • Equipment: $231,853 (60” touchscreen, furniture, fixtures and equipment)
    • A/R: $666,382
    • Intangible Assets: Long-term client relationships, quality design excellence, reliability and thorough documentation                  

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementP&L StatementP&L StatementP&L StatementNotes
2018201720162015
GROSS SALES$2,441,074$1,743,992$1,325,281$1,247,726
Net Income Shown on Financial Statement$837,640$406,616$289,388$211,544
ADDBACKS
Amortization$34,855$28,810$12,286$9,344
Donations$1,100$200$300$1,000
Meals & Entertainment$2,080$1,261$5,806$5,457
TOTAL ADDBACKS$38,035$30,271$18,392$15,801
Seller's Cash Flow = Total Addbacks + Net Income$875,675$436,887$307,780$227,345
Profit Margin35.86 %25.05 %23.22 %18.22 %
.

Typical Clients

  • Commercial
  • Multi-Family
  • Mixed Use
  • Community
  • Institutional
  • Single-Family
  • High-Rise

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Programming
  • Site analysis
  • Site planning
  • Land use feasibility studies
  • Public design consultations

Employees

  • 1 Office manager
  • 1 Associate Project Architect
  • 1 Graduate Architect
  • 4 Intern Architects
  • 2 Senior Building Technologists
  • 1 Intermediate Technologist
  • 1 Interior Designer

Growth Opportunities

  • Growth opportunities include increasing the number of employees to take on more projects throughout Canada and internationally.

Valuation Details

The Firm used a cash flow valuation methodology to determine the purchase price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, a 2018 cash flow was used with a prescribed multiple is 3.  With this information, the computation is as follows:

$875,675         x          3          =          $2,627,025

The fair market value found above positions the business list price at $2,627,000 CAD.

 

*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.

Click to download NDA form

Print, sign and send to:

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

Or fax to:

f 402.939.0857

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.