Our firm represents a manufacturer in Western Canada. The company is family owned and the owners are wanting out due to the fact that they feel like they're holding the company back. The husband-wife owners also own several other companies and are very loyal to their employees, but have also kept the company from growing too big, or out of their comfort zone, by declining large customer orders frequently, and avoiding expanding their sales territory. Also, they currently only operate five days a week, one shift. The reason revenue is down 30% and profits are down 50%, is due to a recapture year, an adjustment year because of the oil downturn. They refused to let employees go due to this, as they know the business is capable of growing much larger and wanted to keep the quality staff in place for the new owners.
We were originally approached by one of their key managers about an MBO and he eventually turned us over to the owner. The owner is open to an MBO, but more important, wants a buyer who will take care of the employees and grow the company to its full potential. They're looking for no less than 3x 2015 EBITDA ($1,519,000) plus the current inventory value (changes daily, but ranges between $1.3-1.9MM daily). The owners will stay on board as long as needed (within reason), but are currently / have been minimally involved.
Asking Price Available On Request
Converted From CAD
Exchange Rate $0.76
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