(Includes approx. $1,600,000 of Plant and $2,500,000 of Stock)
Runs successfully under management with minimal input of approximately 5 hours per week from the owner in an overseeing capacity.
Over the years this business has produced substantial profits for its owners and now that they are in a very comfortable position they have decided it's time to retire to pursue other interests and let a new owner take the business to the next level.
The Business has just renewed a contract with a government agency for exclusive long term supply arrangements. This type of contract is only given to a very low number of businesses in WA.
The business already has a strong overseas client base which have recently increased long term orders.
The market accessed by it is varied in both its diversity and in its geographical distribution. It’s a market that has been historically very strong in Australia and will continue to be because of the large variety of industries and customers it supplies.
EXTREMELY DIVERSE CUSTOMER BASE
Because of its longevity and reputation, the business has a very diverse customer base which in turn provides a very stable income and cash flow. Not reliant on agencies or large clients, which reflects a lower than normal risk factor. The expanding export opportunities have compensated for the current downturn of the WA economy and the recent closure of a local major competitor have now increased in turn the demand for local orders.
APPROX. $2 MILLION WORTH OF ORDERS ON THE BOOKS
Because of its long established customer base and reputation, the company has approx. $2 million worth of orders on the books at any time. This gives the buyer additional security and cash flow.
VERY HIGH BARRIER TO MARKET ENTRY
The only way a potential newcomer to the industry would survive is to buy a business such as this with existing contracts – contracts of this type are very difficult to obtain. A business such as this is not established overnight, finding skilled and experienced staff and establishing a reliable reputation to win the confidence of quality clients and supplier is a significant barrier to entry into this market not to mention the very high assets investment required.