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Established Home Builder With Excellent Reputation; Midsized For Sale

Saskatoon, Saskatchewan, Canada
Asking Price:
$2,900,000 (CAD)
Sales Revenue:
$7,676,000 (CAD)
Cash Flow:
$678,000 (CAD)

Established over 10 years ago, this midsized family owned home building company is a model of organization, efficiency, and professionalism. It has an excellent reputation in the Saskatoon area and has very high public reviews.

The owners are entrepreneurs and have multiple other businesses they would like to focus on for the future. This business has been their primary focus for over 10 years, and they have built this business to a level that would allow someone looking to break into the industry or a larger company looking to expand its footprint to Saskatoon do so on solid footing.

This company builds mostly entry and mid level single family homes, with some acreages and the occasional custom home close to the $1M mark. Due its excellent reputation, and word of mouth, these higher end builds come in without advertising specifically for them. And even many of the entry and mid level customers find their way to this builder by the same reputational route.

The owners have always believed firmly in having proper systems, controls, and structures in place so that the business can run smoothly and deliver reliable, consistent results for its customers.
The company is very organized and has what amounts to an operating system that governs almost everything, while allowing its team of professional employees a high degree of decision making ability.

The company has a small team of very experienced professionals in project management, customer relations, and finance. There is an excellent company culture, and everyone on the team pulls together to get the job done.

These proper systems, procedures, and professional team members allows the owners to be quite hands off when they wish.

The company has also spent considerable time focusing on cash flow management, and has excellent systems in place for A/R and A/P in order to shorten its cash conversion cycle as much as possible. Proper forecasting and budgeting on everything the company does is also a routine process.

The company has a unique sales process that decreases risk, improves cash flow, and allows large volume while creating a moat that is not easily crossed by other builders. But is a system that is easily teachable to a new owner.

The company believes in developing strong relationships so as to deliver consistent quality and experiences to its customers, as well as to secure good reliable pricing. As such they have excellent trade and supplier relationships established, with many spanning close to 10 years.

In home building the big constraint is always available land, and so the company has also established relationships with a number of land developers in the area and ranks highly with them. This includes Saskatoon Land, where future purchasing power is strictly based upon historical purchases, and this home builder is ranked in the top 10 and routinely gets access to the biggest releases of land, and the choicest lots.

It takes many years to build up these networks and land purchasing power, even with deep pockets. Buying this company allows the new owner to skip many years of development time.

There is ample room for growth in the Saskatoon market that a new owner could capitalize on; the current owners can provide help with a growth strategy for the new owner.

The purchase price is based on the value of assets due to the nature of home building, instead of EBITDA. The assets include hard assets such as land, homes under construction, and tools/supplies, plus significant goodwill. However the owners are willing to do the transaction as either an asset or share sale, whichever the purchaser would prefer.

Revenue was $6M for 2021 and will likely be well over $8M this year.

The owners will stay on to train the new owner for a short period, but they are also open to staying on for a longer period of time as company manager for the right terms if the new owner desires. Maximum 1-2 years as they have their other businesses they would like to transition to full time.

An NDA and buyer profile are required prior to releasing the name of this company, or any additional information.

For more information, please contact us using the form below

Property Information

Real Estate:

Real Property Included

Business Operation

Trading hours:

Mon-Fri, 9-5

Employees:
5
Years established:
10

Other Information

Home based:
This business can be run from home.

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