AUSTRALIA’S MOST WANTED! Ref No. PK9278

Now Available

Business Summary

Net Profit: $3,084,832
Price: $6,700,000
+Stock: $500,000
Industry: Service

      HIGH DEMAND – EXCLUSIVE – PRODUCTS
      Demand accelerating fast on the back of:
  • Infrastructure spending
  • OH&S compliance
  • Terrorism
  • Crime
THIS IS…
“AUSTRALIA’S MOST WANTED” - Business & Products

Contracted Forward Orders of plus $4 to $5 million providing incredible cash flow and rapid pay-down of Purchase Price.

Key Features

  • • High Gross Profit Margin 40per cent (includes labour)
  • • Historical ongoing growth industry - no matter what the state of the economy
  • • Extensive forward order ledger $4 - $5 million
  • • Widespread, growing repeat client base
  • • Secure product lines
  • • Immediate potential to expand the business on the eastern seaboard

Business Overview

HIGH DEMAND – EXCLUSIVE – PRODUCTS
Demand accelerating fast on the back of:
  • Infrastructure spending
  • OH&S compliance
  • Terrorism
  • Crime
THIS IS…
“AUSTRALIA’S MOST WANTED” - Business & Products

Contracted Forward Orders of plus $4 to $5 million providing incredible cash flow and rapid pay-down of Purchase Price.

Sales:                           $15,525,912,
Gross Profit:                $5,709,588
Net Profit:                    $2,736,512
Plant:                           $1,100,000
Price:                           $7,200,000 inclusive stock of $500,000
 
These must have products are bought and installed for the protection of all Australians - Warranted by Government Mandate, and Paid for by tax Payers - for their own protection!
                                           WHAT A DREAM BUSINESS
With a large portfolio of flagship projects clearly demonstrating its ability to deliver on new jobs; quality certification; and clear status as the market leader it’s little wonder that this business demonstrates strong ongoing performance.
Sales have more than doubled with the establishment of a new interstate branch in Queensland. As at July 2017 the business has $4 to $5 million in forward contracts.  
The Australian Government has committed AUD 50bn for current and future infrastructure projects and its Infrastructure Programme. These funds are invested in over 1’000 projects across all states of Australia.
The business undertakes works for hundreds of clients in the construction industries, local councils and shires and government bodies together with numerous Tier 1 contractors.

The strategy of the current owners has been to cultivate repeat business through consistent excellence in service and the development of long term working relationships with customers and contractors, and they have achieved this, meaning the new owner takes over a business which is exceptionally stable.
This is a multi-billion-dollar industry in Australia has a highly atomized structure. The majority of the players are family businesses covering a specific geographic area with a relatively narrow product portfolio.
Currently there are no real national players covering all states. This business is considered a top contender for that spot.
 
The businesses customer base is derived from a wide spectrum of industries - means no dependency on any one sector to maintain sales.
 - Government
- Civil infrastructure
- Defence
- Schools
- Airport
- Ports
- Prison
- Mining industry
- Oil & Gas industry
- Power Generation & Distribution
 
The business is Set to continue its leading Status and is an exceptional opportunity for a new owner willing to take advantage of huge potential ahead.
Key Features:
 
Full-fledged solution provider rather than simply a product provider - Being a solution provider who has the capability to fully take care of the client’s wants and needs, rather than just being a product delivery business.
 
One stop shop for key security and safety products & services, in the supply of semi-finished, finished and custom products.
 
Large established client base - High number of clients where the business is prequalified and has long-term contracts.
 
Strong product range with in-house customized capabilities - Strong brand and impeccable reputation.
 
Highly experienced management team across all functions.
 
Outstanding client service, strong supplier base for sourcing the right products at the right time and at the right price to service all clients.
 
Strong track record of delivering projects in time, scope, and cost consistently delivers projects within the agreed parameters of quality, time, and cost.
 
Preferred status with key client’s Initial client engagement to establish relationship and become a pre-qualified and preferred supplier is a key to the success of this business.
  • High Gross Profit margin
Self-propelled sales and a high gross profit margin of 40 per cent (includes labour) is indicative of a business which is both solid and in a strong growth phase.        
  • Historical ongoing growth - no matter what the state of the economy
The business has continued to record increases in sales and gross profits from inception and on this basis the owner sees no reason why this trend will not continue, especially given the fact that infrastructure investment will continue apace to meet the needs of a growing Australian population.
  • Essential products
  • Extensive forward order ledger
With forward orders between $4 to $5 million and demand from the security and infrastructure sectors continuing to grow driven by population growth, the prospects for even greater profit increases seem exceptional.
  • Low hours per week by owner
Cross trained staff and divisional managers make it easy for the owner to oversee the business operations. The current owner works 24 - 30 hours a week on average, however because of the ease of operation the business could even be placed under total management to reduce the owner’s hours further if desired.
  • Widespread, growing repeat client base
The growing list of customers currently numbers over 1,000 with no one customer representing a large percentage of ongoing annual sales. This has been a deliberate policy employed by the vendor to make the business less susceptible to major sales downturns resulting from a loss in a major customer. This is a key feature not often found in businesses of this size.
  • Preferred supplier status
This business is in the enviable position of being a preferred and/or prequalified supplier to a large number of major customers. This means several of these customers may tender on the same project and regardless of who wins, this business usually gets the work.
  • Well established
The business has been servicing the Perth market for more than six years and during most of that time the demand for its products and services has exceeded the business’s capacity to produce. With very little sales or marketing effort turnover has continued to grow year on year, purely through reputation and word of mouth.
  • Low competition
Competitors are long-established, so the company has always operated against the present level of competition.
  • Low advertising
The business is in the fortunate position it does not need to run advertising campaigns to capture customers, but is able to run at, or close to, capacity with work from repeat clients. However this also means that if the new owner were to opt to proactively market the business to new potential customers, revenues and profits could be significantly increased.
  • Immediate potential to expand the business
The business has already commenced an expansion programme which has involved it in projects across WA and on the eastern seaboard. Continuing to grow its geographic footprint will enable it to service many more clients and projects in the east and in South Australia and the NT.
 
Long term historical growth
This growth has been entirely based on performance – the better service it provides the more work it wins. This means its growth isn’t dependent on external factors over which it has no control.
  • Securwe product line.
 Exceptionally secure supply arrangements and an in-house manufacturing capacity means the business is always able to meet the demands of its clients.
  • Low stock holding
  A stock level of $400,000 to $600,000 in a business this size is considered minimal. Most other 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.
 
To make an informed decision please contact Pat Keenan - Smith for your copy of the complete Detailed Business Report
Mobile: 0413 626 633 or (08) 6002 2070
Email: pat@pbsbusiness.com.au
 
NEW BUSINESS LISTING - BUSINESS REPORT READY
 
Unlike other brokers who provide a couple of pages of basic information, the high detailed report on this business will evaluate the staff, products, markets, facilities, sales potential, competition, financial analysis and much more. This usually runs over 40 pages, analysing everything you need to know to make a quick but informed decision that will save you time, money, frustration and risk.
In dealing with Performance Business Sales you will find our carefully selected businesses listings are of a higher quality and therefore reflect lower risk than most businesses offered by our competitors. It will truly be worth your while to confirm your interest in this outstanding business to avoid disappointment.
 
This business affords the lucky buyer extreme low risk in that it has a diverse and reliable customer base with lock-in feature. The business is poised for progress in a variety of directions, with new potential markets ready to be developed. This is an exceptional opportunity for a new owner willing to take advantage of this outstanding business investment – DON’T MISS THIS!

Financial Analysis

graph Click to enlarge image

Sales: $15,525,912,

Gross Profit: $5,709,588

Net Profit: $3,084,832

Plant: $1,100,000

Price: $7,200,000 inclusive stock of $500,000

Listing Brokers

Pat Keenan-Smith

Pat Keenan-Smith

Senior Broker To The Graham Nankivell Team