90 Year Old Commercial Construction Business
This is one of the oldest and most established Ontario’s construction businesses with a strong footprint in the commercial and institutional construction space. The business provides construction management solutions and design-build services. Additionally, the business is an authorized builder of Nucor Building Systems.
The company has a highly skilled team of estimators and project managers, which has helped it to develop and sustain a reputation for service excellence. The business has a highly loyal workforce and enjoys low turnover; many employees being 2nd and 3rd generation. The Company operates in a unionized environment.
The company has outperformed its competitors in weak economic environments, demonstrating an outstanding resilience and a strong performance year-over-year. The business has highly diversified revenue streams. Revenues are generated from ongoing relationships, tenders, construction management projects, as well as general contracting services for smaller projects. The business has a large and long-standing customer base with no single client accounting for more than 4% of gross revenue.
According to the IBISWorld Canada, the commercial, industrial and institutional construction industry is expected to see an annualized growth rate of 2.1% over the next five years.
This opportunity is ideal for a synergetic buyer or general contracting/construction business looking to enter or expand in the robust Ontario market. The business is also a good strategic fit for a large scale electrical or mechanical contractor with experience in sales and project management, looking to enter the general contracting space.
Working Capital of $300,000 is included. This amount is an approximation as it fluctuates seasonally, and FF&E is a fair market value assessment, not Book Value which is approximately 60% of the FMV.
FF&E value strictly reflects the Fair Market Value of vehicles, such as trucks and Bobcat Utility Vehicles (UTVs). As per the insurance company’s estimate, the total replacement value of all of the equipment and tools included in the asking price is estimated at $800,000-$900,000.