Manufacturer of Racking Systems for IT and Servers for sale in Toronto,, CAN

Business Summary:
This manufacturer designs and fabricates racking and cabinetry systems across Canada and the United States. Established in Toronto for over 50 years, this fabrication business has experienced significant growth and success in the industry. With over $1,000,000 in upcoming work, the company continues to expand its market presence and customer base. Their client base consists of IT companies, cabling contractors, distributors, data centers, and financial institutions – 70% is direct to the end user and 30 % is to distributors. They work with 40 to 50 clients annually. The company operates from a spacious 24,000 square foot facility that houses a design center, and production area. The company has 24 full-time staff members, including 16 skilled craftsmen in the shop and 6 administrative personnel in the office, and 2 in leadership. They do not do any installation or wiring of products. The owner is not involved in the business, providing minimal oversight as he has a team of experienced managers and employees who run the day-to-day operations. The seller has offered to carry 15% of the purchase price in addition to a 6-month training period in order to provide a seamless transition. Equipment and Inventory included is valued at $939,429, plus AR for the buyer’s working capital is $145,000. In addition, they boast a work in progress of $650,000 with a backlog of $700,000!Priced at $2,450,000, this business is primed and ready for a new owner to step in and enjoy a reputation that has been built over the past 50 years. A 20% down payment of $490,000 will return $128,602 in the first year after debt payments!