Lights, Camera, Action! Film and Television Equipment Rental Business

Lights, Camera, Action! Film and Television Equipment Rental Business

Price: $875,000

Location: Toronto, Ontario

Industry: Film & Television Production

Listing Description

There has never been a better time to get involved in the TV and Film industry in Toronto.  Unprecedented demand for film and TV content from subscription services such as Netflix, Amazon Prime, Apple+, Disney Plus, etc. is driving significant growth in the 4th most filmed city in the world.  Boutique motion picture and television equipment rental business located in Toronto.   High touch, personalized service reputation.  Equipment inventory includes an extensive line of film and television cameras and accessories, lighting, grip equipment and a complete range of generators and electrical distribution.  They also carry camera cranes, remote heads, camera dollies, car mounts and a broad range of specialty film and broadcast equipment.   Ideal acquisition for a company in the industry that would like to have a presence in the Toronto market.

Listing Details

Cash Flow: $130,000

FFE: $50,000 (Included in Price)

Inventory: $750,000 (Included in Price)

Reason For Sale:

The business has operated successfully since being founded in 2006 and is positioned for significant future growth, however, the growth will require time and dedication that the owner cannot provide. The owner is heavily involved in two unrelated businesses out of the country that requires his full attention. He has therefore decided that a sale to a buyer or investor who can provide full-time effort is the best course of action for the business.

Training & Support:

To assist in the success of the new owner, the current owner is prepared to help in the transition for as long as 3 months to provide continuing service, training and knowledge transfer as required.

Operation

Year Established: 2006

Days & Hours of Operation: M-F - Standard Business Hours

Owner Hours Per Week: 20

Employees: 1 PT (Owner)

Location

Monthly Rent: 1277

Type of Location: Industrial Space

Square Footage: ~2,800 sq/ft

Relocatable?: Yes

Facilities Information:

The business facilities are leased. The current lease is month to month and there is no formal lease agreement in place. It is believed that the landlord would be willing to put a formal lease in place upon request.
Occupying approximately 2,800 sq. ft. of building space, the base monthly rent is $1,277.57 plus HST, which is $15,330.84 plus HST annually.
The space consists of a small office/reception area, equipment storage room, shop space, test room, and washroom
The current facilities are required to operate the business.
The facilities are adequate and there is potential to lease additional adjacent space of approximately 3,000-4,000 sq./ft to the East and/or 4,000-5,000 sq./ft to the West

Summary

Historical Summary:

  • There has never been a better time to get involved in the TV and Film industry in Toronto. Unprecedented demand for film and TV content from subscription services such as Netflix, Amazon Prime, Apple+, Disney, etc. is driving significant growth in the 4th most filmed city in the world.  (See attached Appendix A – Industry Information)
  • Currently there is approximately 2.2 million square feet of production space in Toronto with 1.2 million square feet of new production space opening in 2019 and late 2020, a 55% increase. Source: Altus Group
  • Production companies rent all the equipment needed to produce a film, commercial, video, or TV show.  There are several reasons for this: 1) The equipment needs vary greatly from production to production 2) Each production has its own financial management, buying equipment for each project doesn’t allow for depreciation of capital purchases. 3) Storing, maintaining, and managing the equipment is very difficult and not a core competency.
  • As the number of productions increase, so will the demand for rental equipment services.
  • The current revenue and profit figures do not reflect the potential of the business. The owner has been preoccupied by two unrelated businesses that he owns that have commanded most of his time and attention.   A dedicated focused effort could see a significant increase in revenue and profits.
  • Ideal Purchaser:
    1. A competitor in the local market or a company that would like to enter the Toronto market. Acquiring a client base and rental inventory for a fraction of the $1.174M USD replacement value.
    2. An experienced film crew member who would like a more stable income, less travel, and normal working hours but stay in the film industry
    3. An investor who could hire a full-time manager (owner has an experience manager ready to join) to run and operate the business.

Owner Qualifications:

Ideal Purchaser:

    1. A competitor in the local market or a company that would like to enter the Toronto market. Acquiring a client base and rental inventory for a fraction of the $1.174M USD replacement value.
    2. An experienced film crew member who would like a more stable income, less travel, and normal working hours but stay in the film industry
    3. An investor who could hire a full-time manager (owner has an experience manager ready to join) to run and operate the business.

Competition:

The client has distinguished its business from competition by providing personalized service and expertise, something the much larger competitors have a difficult time delivering.

Potential Growth:

Growth Opportunities

  1. Full-time owner/manager
  2. Open a Northern Office – to take advantage of the Northern Spend film credits
  3. Increase Inventory
  4. Add Location Equipment (tents, pylons, tables, chairs, etc.)
  5. Add Services i.e. delivery, set-up

Add partnerships to increase offering i.e. Skyjacks, generators, etc.

Financing/Terms:

TBD



Broker Info

Robert Jones

Email: robertjones@sunbeltcanada.com

Contact the seller