Architecture Firm with Niche in Gaming & Entertainment Industry

This architecture firm with nearly 35 years of experience specializes in the entertainment and gaming sector (60%), a large portion of their services are related to designing complex casinos, a service that not all firms are able to efficiently provide. The focus of their firm is to guide clients through unique architecture that is both elegant and intelligent, along with lead planning, design, and working alongside clients in the construction phase. This firm also handles condos (15%), commercial and industrial spaces (10%), corporate interiors (10%), and luxury residential work (5%). Located in Toronto, this architecture firm’s staff primarily services clients in Ontario but have worked in the US because of their expertise in casinos, which a buyer could reimplement easily, as they still have client connections and resources. The team includes 21 employees, including a CFO, General Manager, 9 registered architects, 4 technical draftsmen, and 3 architect interns. The current owners are selling to solidify a succession plan for the company they have built over the last 30+ years. Partners 1 & 2 handle client relations along with team & project management. As such, there is no replacement needed for the 3rd partner. As a show of vested interest in the ongoing success of the company, the partners will offer an extended transition period (Partner 1 for 4-5 years, Partner 2 for 3-4 years). The price of $9,250,000 includes a 10% seller carry, along with a 10% equity roll to show good faith in the business continuing successfully post-close. Over the last 5 years, the business is boasting an incredible 55% profit margin! With the purchase, a buyer would also be receiving $439,756 in working capital. This firm is back to pre-Covid levels with revenue, and a 2022 cash flow of over $2.3M!