High Performance Building Materials Distributor

High Performance Building Materials Distributor

High Performance Building Materials Distributor
Location: Southern Ontario

Industry: Wholesale & Distribution

This is an opportunity to acquire an exclusive coast-to-coast distributor of a high-quality line of European windows and doors. Having grown by over 700% in the last four years, the business has outperformed and outgrown the capabilities and expectations of its founders who are looking for a purchaser to take over the business and navigate through its next stage of growth and development. The company’s portfolio of high-performance products includes various Passive House windows, doors and related accessories, suitable for these projects. The company is responsibly managed, environmentally motivated, and operates with a lean and efficient business model. Moreover, the high-quality craftsmanship of these European-engineered products, at competitive prices, appeals to the company’s growing niche market of energy efficiency and quality conscious homeowners, architects, and builders.

The company uses a drop shipping model, purchasing products from its European suppliers and shipping directly to customers across Canada, with a small warehouse space rented on an as-needed basis. This model allows the company to hold virtually no inventory on hand and keep overhead costs low. The company has established a strong connection with suppliers, highlighting zero issues in the past and well-defined terms of their distribution agreement. Working with some of the largest European manufacturers, the company’s suppliers are innovative with designs and up to date with technological trends. Recently, the company renewed multiple contracts with exclusive rights to sell products across Canada.

By taking advantage of pegged foreign exchange rates, upfront deposits by clients, and strategic consolidation of shipment orders, the company is able to earn premiums while maintaining an asset-light model with consistently positive cash flows. The business has been outperforming in sales each year and COVID-19 has had minimal impact on operations except slight delays in shipment and pick ups. Looking to retire, the current owners describe this acquisition as the perfect opportunity for a private buyer with related experience or existing distributor with an interest in expanding their product portfolio within this fast-growing niche market.

Revenue: $2,874,000

EBITDA: $466,000

SDE: $616,000

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