ESTABLISHED 35 YEARS - UNDER MANAGEMENT - SOUTHWEST WA Ref No. RL8770W

Business Summary

Net Profit: $1,349,771
Price: $5,000,000
Industry: Manufacturing, Wholesale, Import Distribution

ESTABLISHED SINCE 1981

This business has developed an enviable reputation for its quality products, reliability and service. A large amount of new work is generated by repeat customers and word of mouth. It's ideal for a country buyer seeking an opportunity which can easily be overseen by anyone with basic business acumen, who will receive a thorough post-sale grounding in its operations from the vendor. 
 

EXPANDING EXPORT MARKET


Key Features

  • Established since 1981
  • Contract with Government Agency for long term supply
  • Exclusive rights for a niche Government supply
  • Expanding Export Market
  • High plant & equipment value
  • Very high market to entry barrier
  • 2 million worth of orders on the books
  • Low input from the owner
  • Large and diverse market
  • Low competition state-wide
  • Largely automated production process
  • Extensive vendor support post-sale

Business Overview

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(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.

Financial Analysis

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The financial outlook for the Business is excellent with current sales showing a consistent demand. It appears that this trend will continue particularly with the demand from the China and South Korean markets. This was confirmed by the vendor with a recent trip to visit overseas clients. The business has also experienced a slight increase in sales across a large majority of its client base, as well as having secured some new customers.

Listing Brokers

Paul Susana

Paul Susana

Senior Business Broker to the Russell Lyon Team

Russell Lyon

Russell Lyon

Principal - Over 35 Years Business Sales Experience