Industry Leading Wholesale Specialty Cleaner

Industry Leading Wholesale Specialty Cleaner

Industry Leading Wholesale Specialty Cleaner
Location: Greater Toronto Area

Industry: Business Services

This is an opportunity to acquire a leading Ontario based specialty cleaning business. Over fifty years, the company has built a wide economic moat by establishing relationships with cost groups and associations. Consequently, the business faces low competitive pressure with no new entrants in the last two decades.

A strong focus on service quality has helped the business build a diversified customer base across Canada and the U.S., none of which account for more than 3.5% of aggregate sales. Over 80% of these customers are extremely loyal and not price sensitive. Additionally, due to its scale of operation, the company can operate at a low price point and crowd out competitors. The company has implemented measures to mitigate environmental risks due to pollution and waste discharge and has the infrastructure to support the use of organic solvents. Employee turnover is low and the business has an experienced workforce and a plant manager can be trained to run operations with minimal owner involvement.

Over the last five years, the business has performed well financially, demonstrating an average 5-year revenue growth of 7% and an average 5-year EBITDA margin of 18%. The business has been able to adapt to changing industry trends and has consequently grown its market share over the last decade. Management still sees immense potential for organic growth through diversification into untapped markets and geographical expansion.

This is an ideal opportunity for a private buyer wanting to acquire a leading business in an industry with high barriers to entry which requires limited owner involvement.

A working capital amount of $115,000 is included in a share transaction.

Revenue: $2,293,500

EBITDA: $440,000

SDE: $495,000

Employees: 23

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