Spring is here and so are opportunities.
This newsletter is a few days later than I hoped, because things are getting busy. There are considerable opportunities for business buyers at the moment including 3 new listings that I have below. Additionally some of the opportunities that I had spoken about in previous newsletters now have offers or are under consideration.
Bakery in Lillooet - We found a buyer and it has an agreement.
Health Food Store in Victoria - We submitted an offer on behalf of a client and it is under negotiation as of today.
In short there are buyers looking for profitable businesses.
If you are thinking of selling, here is an article I wrote about what you need to consider when selling your business. (Click to read the article)
Here are 3 Businesses that we think are good value that you might consider:
1. Daycare Business with Building and Cash: we have just listed a Daycare business with a building in a great location with significant updates. The business is profitable and has two locations and great staff. Owner works 4-5 hours a week. NDA required
Asking Price $1.2 Million
Sellers Discretionary Income = Over $150k in 2022
Includes $100k Cash and a building worth approximately $750k
email dave@businessrealtor.ca for the prospectus and NDA
2. Small Engine Repair and sale Business: this is a great little family business that comes with $200k in inventory and over 50k in assets and tools. The owners make money and it has 8 areas of growth potential. Bank financed the current owners and suspect that this sale will be financeable to the right people. NDA Required
Asking Price $379k
Sellers Discretionary Income :Owners take home $60k per year plus wages
Includes $250k in assets
email dave@businessrealtor.ca for more information
3. Safety company: we have an exclusive listing for a Safety business located in Northern BC. The business is profitable, has staff and significant growth opportunities in excess of $1m /yr Owner selling for family health reasons.
Asking Price $1.8 M
Includes over $800k in assets
EBITA $300k in 2022
Up the Creek Garment Company - The price has been reduced from $4 M to $2.9M. It includes business and building, I have viewed this business and am impressed with the management team. The price is now much more in line with what the market. Email me if you would like to sign the NDA and see the financials and the package.
Nightclub Anyone? Heartbreakers Nightclub and Building has been for sale for a while. However I have recently viewed the most recent financials and this business is making substantial 6 figure profits. The business is only open 2 nights per week. Here is the link to the listing (click here to view). If you want more information and are willing to sign an NDA I can send you the financials.
Multifamily Units: I have reviewed a number of multifamily rental units at the moment but haven’t found much with cap rates that are above 6 %. With interest rates around 7% it is difficult to imagine why investors would tie up money that they can receive close to 4.5 or 5% interest. I believe that with time cap rates might get better, however this might depend on occupancy rates.
In conclusion, I have buyers looking for profitable businesses and there are some good listings out there for investors who are ready. If you know someone who is interested in selling their business or commercial property please reach out to me and I will be happy to sit down with them and talk about how to prepare the business for sale and how much it might be worth.
Dave Fuller, MBA,
Licensed Realtor
Team Powerhouse Realty
250-617-7467
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