Opportunities
Multi-Family & Commercially Focused Architectural Firm
Sold
Providing full architectural services throughout the Lower Mainland
Specifications
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 Statement | P&L Statement | P&L Statement | P&L Statement | P&L Statement | Notes |
| 2018 | 2017 | 2016 | 2015 | ||
| 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 Margin | 35.86 % | 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.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857