Building materials business for sale in Tallinn, Harju County, Estonia
What the business does
The company specialises in importing and selling building materials such as roof underlay, building paper, coverings and tapes. In its market segments, the company holds a leading position as a reliable supplier for high-volume retail outlets and exporters of modular homes.
Authorized distributor rights for Tyvek roofing membranes granted by DuPont.
As a trusted sub-contractor, the company produces and installs partition wall elements and cubicle products for public sanitary and shower rooms. By maintaining a reputation as high-quality supplier, the business holds the number 1 position at large construction companies and general contractors in the region.
The company has been profitable and financially reliable for 20+ years and employs 7 persons, each with more than 10 years’ work experience.
Historically, the company started in 1996 as a local agency for a Finnish provider of building materials. A few years later, the representative office was transformed to a limited liability company owned by one Finnish and one Estonian investor.
Why the business is an attractive proposition to a buyer
A well-established business with expansion potential
The company's expansion potential is bound to the region's overall economic growth. To meet growing demand, there's enough financial power to invest additional funds in working capital when needed. And conversely, to cope with economic downturns, the company has reserves to survive low-demand seasons.
Overall, a 5-7% growth rate on sales revenue and profit is projected for next 3–5 years. This is a conservative estimate. By an optimistic outlook, up to 10% growth rate can be anticipated.
Full support from the owner
The present owner is ready to remain near the company for up to 6 months to support the new owner during the transition process. However, most key business information and contacts are already well documented and structured.
The Asking Price is based on a DCF valuation model. Average 3,5% growth rate on sales revenue is estimated. Discount rate: 16%.
Key financial facts and forecast
The business has been profitable and steadily growing all time. A steady, 5-7% growth rate is anticipated for next 3-5 years.
Reason for selling
The owner is retiring
Required buyer qualifications
A potential buyer shall be capable of funding the deal. No seller financing offered.
Last update: 4/24/2017 12:49:42 PM
Tallinn, Harju county, EE