This can involve selling the business, putting in new management or closing the business down.
One major Burnaby mechanical contractor closed his doors in June. He decided there was no goodwill value in his business.
Two owners of another mechanical business I worked with couldn’t come up with a solution that was acceptable to them so they have ignored the problem.
Two owners of another mechanical business I am working with are putting additional management into place so that they can take more time off.
One HVAC company with three owners has spun off the service company to one of the owners.
I have seven companies, that’s right, seven companies for sale right now. The variations in them are quite something.
Lower Mainland painting contractor: This owner is ready to retire. The company is extremely profitable averaging more than 14% pre-tax profit annually on sales of over $1.4 million. Despite the systems and client base and track record this company will see for between 2 to 3 times annual earnings.
Prince George roofing company: Because of its membership in The Roofing Contractors Association we will likely get about $50,000 for goodwill and $30,000 for equipment. The company has been reasonably successful for many years, providing the owner with a good lifestyle.
Fraser Valley roofing company: The owner makes in excess of $100,000 in salary and perks a year. This is an opportunity for someone to buy themselves a good job. It’s going very cheap.
Lower Mainland roofing company: This is one of the most successful roofing companies in BC (likely in Canada). It does great volume and excellent margins. It makes well over $1,000,000 profit a year. It will sell for 3 to 4 times earnings.
Interior of BC roofing company: This is a fairly average company and will sell for about 2 times annual earnings.
I also have one other roofing company and a sheet metal company for sale, both Lower Mainland.
The reasons I am sharing these stories with you are several.
1. Are you interested in any of them?
2. What are you doing to sell your business?
3. Would you like to get into business? If so what are you doing about it.
4. Many businesses are going to be sold within the next five years. This is likely going to be the growth industry of this decade. How will it impact you?