Wednesday, 7 February 2018

Green Homes Manufacturing Company (Canada)



Business Description: 
This 4-year-old Canadian startup company is a government-certified green home manufacturer and custom homebuilder using steel framing as a primary building substrate.   With its 30,000 SF facility, the company is capable of constructing a prefabricated home using its own design or a developer’s design.  The manufactured steel framed homes are complete with all plumbing, electrical, interior trim, cabinets, light and bathroom fixtures and HVAC.  Raw steel materials are made with recycled materials derived from steel scrap yards and other sources.  Each home surpasses all energy efficiencies greater than R-50 in all dimensional aspects, making them the most energy efficient on the market.  The homes are then easily assembled at homeowner sites.

Operational Strength:
Company is a leader in modern, multidimensional steel framed homes.  Steel made from recycled automobiles is used as the framing system.  The homes manufacturing methods reduce natural resource and waste caused by in-house factory production.  With inherent factory efficiencies, costs are significantly lower than the usual wooden pre-manufactured homes.  This presents a formidable cost savings passed on to the consumer.

The Transaction:
The owners want to retire and divest themselves of this start-up company.  Assets include land, facilities and equipment.  The owners are currently entertaining acquisition/merger/equity stake offers and is willing to stay on for a short transition period.

Growth Strategies:
The company is poised to expand rapidly into the U.S. market, particularly in the Northeast quadrant of the United States.  The market for pre-manufactured steel homes is untapped and a domestic growth strategy will significantly improve financial viability and long-term stability.

Financial Summary:
The company is a start-up and is focused primarily in building relationships with emerging markets over the past three years in order to obtain future contracts for long-term growth of the company.  Therefore, there have been no positive earnings over the past three years because the company has redeployed earnings into operations.  However, this company is growing and has projected earnings for 2017 through 2019 based on seller estimates as shown below, on the basis of and including current year booked orders:

Seller Projected Financial Summary*  (000’s)

2017
2018
2019
Revenue
21,355
52,349
92,967
Adjusted EBITDA
4,402
12,174
22,689
% of Revenue
21%
23%
24%

Other Highlights
Location
Management Team in Place
Years in Business
SIC Classification
Canada
Yes
4
1541, 3441, 2452





Direct All Inquiries to:

Gottesman Company
Refer to:  S-1853 PNB/TJK
Tel: 212-330-8010     Fax: 646-434-4557
                                       E-mail: office@gottesman-company.com