DON’T LIFT A FINGER! Ref No. GN9807B

Business Summary

Net Profit: $844,671
Price: $2,400,000 plus small stock of $250,000
Industry: Manufacturing, Wholesale, Service

IT DOESN'T GET BETTER THAN THIS!!! - YEAR-TO-DATE SALESAccelerating 16% ahead of last year, but what's more impressive -  HISTORICAL SALES GROWTH has exceeded 45% growth over past 4 years.
 It’s no wonder the year-to-date sales and profit are skyrocketing ahead of last years results when you are self-propelled by the continued expanding population in this vibrant major South West major COASTAL township.
It's simple - it's easy to learn - It's low in risk - It's an under management Net profit of  $844,671

Key Features

  • RUN UNDER FULL MANAGEMENT
  • HUGE $381,712 >> SURPLUS after full price loan repayments and managers wage
  • UNSTOPPABLE SALES GROWTH
  • ESSENTIAL - "CAN'T DO WITHOUT PRODUCTS"
  • NO EMPLOYED SALES STAFF OR HIGH ADVERTISNG BUDGET
  • 12 YEARS STRONG
  • MODERN PREMISES AND ASSEMBLY FACTORY
  • LOW COMPETITION
  • EXCELLENT AUTOMATED SYSTEMS
  • NO BAD DEBTS
  • MASSIVE 7 MONTH FORWARD ORDER LEDGER

Business Overview

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MACHINE PUNCH & ASSEMBLY PROCESS

DON'T LIFT A FINGER!

UNDER MANAGEMENT

…NET PROFIT = $844,671

 

THIS IS THE ULTIMATE
…EASY ASSEMBLY LINE

MACHINE PUNCH & ASSEMBLY PROCESS

 
SOUTH WEST – COASTAL
A Short Drive From Perth
 
NOW IT’S YOUR TURN <> TO MAKE A FORTUNE!!
 
FORTIFIED SALES
VIA
FORWARD ORDERS - UNDER CONTRACT
…Span Over Seven Months Ahead
 
  • PROFIT? – Current Industry Outlook Is On The Up & Up
  • YEAR-TO-DATE SALES – Accelerating 16% ahead of last year
  • HISTORICAL SALES GROWTH – 46% growth over past 4 years
  • MANUFACTURE? -  Easy Assembly Process – Documented process
  • ESSENTIAL SECURITY PRODUCTS? – Without Question!
  • FREE FORWARD ORDERS? – Makes It Hard to go wrong
  • LOW RISK? – Absolutely; It’s A Proven Performer 

Over its 12 years of establishment, there has never been a shortage of orders, and with the continued expansion of population in this vibrant South West major township and the surrounding regional areas, it’s no wonder the year-to-date sales and profit are skyrocketing ahead of last years results.
 
As already mentioned, the business currently has about seven months orders secured by way of confirmed written agreements you will take full advantage of, and is still being bombarded with new orders adding to the sales stampede. Also, having a growing order book means the business is in the enviable position of picking and choosing customer orders and allowing it to increase margins for future orders.
 
 
RUN UNDER FULL MANAGEMENT
OR – MANAGE THE BUSINESS YOURSELF
THE CHOICE IS YOURS!

Situated in the midst of the thriving southwest just a short drive from Perth, this is the ideal business for someone wanting a relaxed lifestyle by either running the operations under management or  taking over the management duties to accelerate the growth even faster. Whatever your choice, one thing is for sure; you will have a thriving business in one of the most sought-after locations in the state, together with solid returns from a growing business.
 
If you elect to manage the business as an owner-operator, you will immediately accelerate the net profit to $844,671 through eliminating the manager and saving wages.
 
In any event, despite the scope of the business and the massive profit it generates, it requires little input from management to sustain as most orders free flow via word of mouth recommendations.
 
An experienced workforce takes care of the day-to-day assembly line production that allows the manager or owner to take extended holidays when required. That makes this business not only a rare entry point into a fast-growing industry, but also one which is suited to virtually any buyer with basic business acumen.
 
THIS BUSINESS IS SO STRONG…
IT CAN ACTUALLY BUY ITSELF!
Hard to believe, but it’s true!…

…For example – Finance approved Buyers could potentially borrow the full asking price, paying no deposit. Let’s assume your target is to pay off the full price loan entirely out of the business’s under management profit in seven years. The following example reflects the surplus profit after deducting the annual principal and interest loan repayments and managers wage. As each person's personal loan requirements will be different, you should only use the parameters below as a guide before speaking to your own financier for an accurate quote.
 
  1. RAPID PAYBACK OF FULL PRICE BUSINESS LOAN - PARAMETERS:
Deposit: Nil
Interest Rate: 6%
Term - to full pay back business loan: 7 years
Under Management Net Profit: $844,671
Full Price Loan Amount : $ 2,650,000
 
  1. SURPLUS PROFIT SUMMARY – Based on above parameters
Monthly Payments $38,712.67
Annual Payments $464,552.03  (to be deducted from profit)
 
CASH SURPLUS (Under Management) $381,712
CASH SURPLUS (Owner/Manager) $444,112
 
END RESULT…
  1. You have an asset purchased fully by the business’s own profit
  2. Manager has run the business leaving you to do very little
  3. You have potentially received a cash surplus of some $381,000 each year
  4. With no Load repayments after the 7-years – your surplus  substantially increases
  5. Selling the business after full loan payback generates the ultimate cash jackpot
 
Note: Use these figures only as a guide.  Please contact your own financial institution for more details relating to your own personal circumstances.
 
 
THIS BUSINESS HAS EVERYTHING RIGHT…
…RIGHT LOCATION, RIGHT PRODUCTS, RIGHT BUSINESS MODEL

The fact the business has a fully capable modern manufacturing plant on stand-alone premises, and carries an excellent range of stock material, puts the business at the forefront of the industry in terms of speed of job turnaround times – something highly valued by this business’s customers, who heavily depend on its free-flowing orders being manufactured in a timely manner.

With some job applications being handled by contractors, the business is also in the fortunate position of needing to employ a low staff list of only seven full-time manufacturing staff.  With a stable and growing market, a record of exceptional growth, and a cost-effective structure – low staff, low stock levels, and a flexible sub-contractor workforce – this is a business with significant strength and potential to double the existing net profit without investing large sums of money.
 
 
CUSTOMERS

Unlike many other manufacturers and wholesalers, the company supplies a large, long-established, repeat order client base, with no one customer representing a large percentage of the fortified sales.
 
 
NO GEOGRAPHICAL RESTRICTIVE BOUNDARIES…
…PROVIDES THE NEW OWNER WITH UNLIMITED GROWTH POSSIBILITIES

While supplying primarily to the southwest (98 percent of sales), the business services customers as far south as Augusta with some penetration into the Perth metropolitan and hills areas. These non- exploited markets are an obvious area for a new owner who wished to expand sales rapidly. A new owner could even establish a second location, perhaps opening an office in Mandurah or even the Perth metropolitan area.
 
BUT, WHAT WILL THIS YEARS PROFIT BE?...
Well, this is a no-brainer - here are just a few reasons why the 2018 years profit has a real potential to eclipse the 2017 net profit which the business price is based on…
 

Business Ace Cards...

 
UNSTOPPABLE SALES GROWTH
for the first 6-months of this financial year is up a huge 16%, placing this business on target to eclipse the 2017 under management net profit of $844,671. 

 
NEW ESSENTIAL PRODUCTS
Recently, the company has gained a new and diverse range of security products, which is quickly gaining momentum – so much so, the business is now acknowledged as the market leader of this proven range of products spread over many market sectors.  Growth within this surging market segment seems uncapped with enormous potential to pursue further multiple growth opportunities. And because the business’s other products are also growing in demand,  little has been done to expand the business into other areas of endeavour.

 
SELF PROPELLED SALES - WITHOUT A LARGE ADVERTISING BUDGET
The owners’ strategy has been to allow the business to grow automatically rather than aggressively pursuing the market, so its growth over the years is testament  to the companies unrivalled reputation as a reliable, quality fabricator.  However, that also suggests that if the new owner were to implement a marketing plan, sales and profit should both dramatically increase.


LEADER IN ITS CLASS
It is the owners’ belief that there are no direct competitors to this company’s quality, service or quality product range. This is proven by its loyal customer base and consistent level of word-of-mouth recommendations that continue to grow the upward trending profit.
 
 
FUTURE LOOKS UPBEAT!
Self-propelled sales and a high Gross Profit margin of 44.82% is indicative of a business which is both solid and in a strong growth phase. As this business manufactures essential security products to the growing southwest population and beyond, it would be reasonable to expect the demand for this business’s products will be even stronger post-settlement.
 
New Government legislation will result in customers being forced to purchase larger quantities to maintain compliance.
 
And if that isn't enough, the growing South West population will also require infrastructure and facilities to accommodate it, such as schools, sports facilities, community centres, hospitals, etc., and all these new buildings will require products this business supplies.
 
 
WIDESPREAD GROWING REPEAT CLIENT BASE
As previously mentioned, the business has no one customer representing a large percentage of annual sales. This has been a deliberate policy employed by the vendors to make the business less susceptible to major sales downturns resulting from a loss of a major customer. This is a key feature not often found in businesses of this calibre.
 

LONG ESTABLISHED – APPROXIMATELY 12 YEARS
The business has been servicing the southwest market for some 12 years. With very little sales or marketing effort, turnover over the past 4-years has grown by some 46%, purely through reputation, with no marketing plan, sales force or large advertising budget. 
 

NO RELIANCE ON SALES STAFF TO GENERATE SALES
The vast majority of sales are simply self-propelled which means that the current owner does not have the overhead of running a sales force or large advertising budget. However, it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly be increased if need be.
 

EXCELLENT PREMISES AND LOCATION
The business is situated in a central location in the southwest and can service clients from Perth to Augusta. The condition of the building is excellent with landscaped gardens and exceptional modern facilities. Customer parking and access for delivery trucks and other heavy vehicles is excellent, as is signage.
 

LOW 5-DAY WEEK TRADING – WEEKENDS ARE ALWAYS FREE!
The business trades five days per week opening at 7.30am and closing at 4pm.
 
LOW COMPETITION
Although the business has a clear point of difference that puts competitors at a disadvantage, it has always operated against the present level of competition. Evidence competitors do not affect this business; is the massive forward order book with a present sales value of around $700,000 as at January 2018.
          

BARRIERS TO MARKET ENTRY
Aside from the significant capital requirements, a newcomer to the market hoping to compete would face competition against a well-known and established business such as this.
 
OWNER CAN TAKE HOLIDAYS
The current owner takes extended holidays for four-plus weeks per year, during which time the reliable staff control the business.
 

EXCELLENT AUTOMATED SYSTEMS
The business has an excellent, robust documented structure making the business easy to run and learn.
 
CURRENT YEAR TO DATE SALES ARE UP 16%
Year-to-date sales are racing well ahead of the previous year's results and are expected to grow even faster as more orders continue to expand its massive forward order ledger.  
 

LONG ESTABLISHED REPEAT CLIENT BASE AND SUPPLIER LIST
As the business manufactures its own products, it is not reliant on agencies or a large sales percentage of clients, thus offering excellent stability and low risk.
 

LOW STOCK HOLDING OF JUST $250,000
For a business of this size, this amount of stock is considered minimal. Most comparative priced businesses will carry much higher values than this, which will demand higher working capital requirements and unnecessary money tied up during the term of ownership.
 

COD OR PAYMENT ON DELIVERY – LOW WORKING CAPITAL
This is a high cash flow business with some 30 percent of debtors paying within 7-days and the remainder within 30 days.  This provides the business with an excellent cash flow, which minimises bad debts and working capital.
 

PROFITS CAN BE PROVEN
The business has a complete set of verified accounts and accounting computer systems that offer the Buyer’s accountant a complete audit trail to verify profitability.
 

NO BAD DEBTS
During the vendors’ ownership, the business has not experienced any bad debts.
 
 
PRODUCTS CAN BE DESCRIBED AS “MUST HAVE” PRODUCTS
Which are intensifying in demand, despite the state of the economy.
 
This is a sure-fire time-tested profit maker -
You’ll never find another business a safe or as good as this!
 
SO THERE YOU HAVE IT! - Lifestyle – Profit – Ease Of Operation and the opportunity to live longer without the big city stress.
 
Change your life for the better and reserve your copy of our 100-page business report on this outstanding business today.
 
But because it’s suited to so many different types of people, this one won’t last.

Financial Analysis

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UNSTOPPABLE SALES GROWTH - for the first 6-months of this financial year is up a huge 16%, placing this business on target to eclipse the 2017 under management net profit of $844,671.

Listing Brokers

Graham Nankivell

Graham Nankivell

Graham was the original founder of Performance Business Sales and is one of W.A.'s most experienced Brokers.