Industries Served

Construction & Engineering

  • Engineering Design
  • Construction Equipment and Plant Manufacturing
  • Construction and Project Management
  • General Contracting
  • Design-build Companies
  • Industrial Equipment Design and Manufacturing
  • Industrial, Commercial and Residential Construction
  • Landscaping and Home Renovation Companies
  • Infrastructure Development Companies
  • Civil Engineering
  • Design Engineering, Architecture and Consultation
  • Infrastructure

Beacon has advised several businesses in the Construction & Engineering industry.

Mandate

Beacon was engaged by a residential contracting business with over 60 years of experience serving the GTA. The business had an extensive clientele ranging from middle and high-income residential house to residential condominium owners. The business was known for its high-quality service and skilled craftsmen and had won several awards as a result. Due to Beacon’s strong presence in Ontario and experience working in the engineering and construction, Beacon was chosen as the exclusive broker and provided sell-side transaction advisory services through the entire sale process.

Implementation

Beacon began by compiling a fairness opinion to determine the business’ true fair market value and proceeded to compile deliverables and confidentially market the mandate to potential buyers. The business offered high-quality contracting services covering a full spectrum of residential design-build and exterior landscaping. As a business with superior operational capabilities and deep penetration in Toronto’s in-demand housing market, the business was an excellent turnkey opportunity for a general contractor or private buyer seeking to enter the residential space in the GTA. Through our large network of buyers and industry professionals, we were able to attract several buyers for the business. Based on the seller’s criteria and vision, as well as our financial acumen, we were able to pre-screen buyers and solicit offers from serious buyers. Outcome

Outcome

Beacon’s team assisted our client through every step of the sale process, and successfully completed the transaction. Beacon effectively negotiated a share deal with a private buyer who had previous involvement in the residential real estate and general contracting space. Our team advised the seller through the buyer due diligence process, ensuring transparency between both parties. The deal was structured with a 90% cash amount payable at close. The balance amount was held in an escrow account accruing interest for the benefit of our client (‘the vendor’) and was payable in the form of a balloon payment, 18 months from the closing date. A transition period was negotiated to prepare the successor for takeover and facilitate a smooth transition.

Industry Overview

The Engineering and Construction industry is comprised of construction, design-build, engineering and design firms, general contractors catering to residential, industrial and commercial clients. Key suppliers include metal manufacturers, lumber and wood product suppliers, concrete and cement manufacturers, heavy equipment rentals, architects and accounting and software companies. Clients include larger corporations and residential and commercial real estate owners. The industry is in its mature stage and is characterized by moderate and steady growth and consolidation. The industry is moderately regulated with most regulations focusing on health and safety standards for employees and workspaces. The construction industry is heavily influenced by macroeconomic conditions including interest rates, government spending and foreign direct investment. The industry generally thrives in an environment of low commodity price volatility and low oil & gas prices. Key drivers include strong economic growth, high corporate profits and high consumer discretionary spending.
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