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UNDER SEMI MANAGEMENT - NEWSAGENCY WHOLESALER - ONCE IN A LIFETIME OPPORTUNITY!

Ref No. GN3810W

Graham Nankivell

Position: Principal - Over 35 Yrs Business Sales Experience
Phone: (08) 9429 8882
Mobile: 0413 436 766
Email: Email Me

State: WA
Location: Perth
Category Wholesale

NEWSAGENCY PRODUCTS WHOLESALER
Largest business of its type in WA

INCREDIBLE - BUT TRUE FEATURES

üA PERFECT 10 out of 10 Special Low Risk - Lifestyle features

1. This years best business – 2 only staff – fun and easy
2. Owner works approx. 22 hour week
3. Refuses to stop growing – No matter what the state of the economy
4. Unisex appeal - products used by millions
5. Feel safe - feel secure – historical tax facts and long established customers
6. Highly profitable – with minor overheads
7. A truly portable business – no reliance on passing trade
8. Long established - 27 years proving it’s a robust business
9. Trades only 5 days a week – something everybody wants
10.Stock in – stock out - means no holding stock

AND MUCH, MUCH, MORE

Profitable, secure, long established cash-flow businesses that have a long established repeat order client base are extremely hard to find…
…This is such a business!
The business has an excellent reputation which is borne out by the fact that the bulk of their business comes from established repeat customers that order on a monthly basis.

EASE OF OPERATION
No special knowledge is required to successfully manage the business. All of the day-to-day operations are carried out by a small dedicated team of competent employees which totals only 2. The owner simply needs to put very little (about 22 hours a week average) into managing this highly efficient, smooth running business.

PRODUCTS
Probably the most widely used products throughout the world many of which are nationally and internationally recognised, make it virtually impossible to go wrong.
Because products are constantly in demand by such a massive number of people they virtually sell themselves.

This business is a true wholesale distributor that has harnessed a huge range of products that are essential, affordable and in constant demand, generating both new and repeat sales. Both the business and its products have stood the test of time (established 27 years) as this global multimillion dollar industry appeals to all demographics and age groups.

The average time between ordering to delivery is approximately ten days. The business has exclusive representation into its mainstream customers who it supplies.

MINOR/LIMITED COMPETITION
The business has a history of strong growth and the luxury of only one major competitor. This in itself is a rare feature that will be impossible to match in other businesses.

SELF PROPELLED BY MASS CUSTOMER GROWTH
Evidence of new accounts opening on a regular basis is reflected by the solid growth performance since inception of the business. More importantly, current year to date sales are well up over the previous years results putting the business on target for another record year.

LOYAL BLUE CHIP CUSTOMERS
This business has developed a reputation for excellent customer service over its 27 years and is seen by clients as professional, organised, and flexible. The result is trust and loyalty from the company’s clients with No bad debts.

The customer base is long established, some in operation for more than 18 years and the majority make purchases on a monthly basis. Automatic re-ordering is made simple by the use of industry standard computer programs utilised by 95 percent of this business’s customers.

Currently the business’s main focus is to service existing customers and there remain many niche markets that have not been fully exploited. This provides significant opportunities for increased sales and the business should grow in direct proportion to the rate at which the facility is marketed.

WHAT – NO STOCK!!
This business is fortunate in that it is not required to purchase any trading stock as it is a direct conduit between supplier and this business’s customer base. The main upside of this is you need virtually NO WORKING CAPITAL. Try finding another wholesaler that could match this feature alone. Orders are mostly taken two to three months in advance guaranteeing continued sales into the future.

THE OWNER’S INVOLVEMENT
At the present level of trading, the business requires the part/time attention of a single owner prepared to work approximately 22 hours per week.

The owner’s duties are by no means onerous and the business is able to close for two to three weeks over Christmas. Another benefit the business has to offer is the opportunity for the owner to take additional holidays attached to interstate or overseas conferences.

THE SUCCESS STORY SO FAR
1. Long established cusutomers with most ordering monthly
2. A record of a high standard of service because of its systemised process.
3. A proven history of continuous growth since establishment.
4. An exceptionally profitable business with five day trading.
5. A stimulating work environment, interacting with a diverse range of people.
6. Combine business with pleasure – tax deductable travel opportunities.
7. This business is considered to be the largest of its type in WA.
8. But here is the best part – owner works only 22 hours per week (approx)

STAFF LEVELS
The systems in operation have evolved over a long period of time and are as simple as possible and easy to learn. Besides the owner the business employs only 2 staff members and, in simple terms, operates on a daily cycle of ordering and sales.

Both employees work full time in the business. One started working in the business some 8 years ago and the other 3 years ago. Each is paid a salary of approximately $46,000 per annum plus incentives.

No formal qualifications are required for staff and the owners suggest that only a small amount of handover training would be required and are willing to co-operate with whatever is reasonably necessary.

STAFF TRAINING
Staff training is based on a comprehensive staff manual and induction program. The time required to train a sales representative is approximately one week with some on going help if they have no previous related experience.

MARKET SIZE
In every year of its operation the business has continued to established many new customers, with a minimum number of accounts opened each year. Added to this, each time one of its customers changes hands excellent restocking opportunities arise.

The growth of the market is driven by several factors.

Regional population increases result in new accounts. Country areas account for 20 percent of accounts and the potential exists to develop this further. Many new stores have been established in regional Western Australia in the last five years including: Port Hedland, Karratha, Newman, Bunbury, Busselton and Albany.

Suburban expansion has resulted in the opening of new stores or new shopping centres as well as the refurbishment of existing sites. Recently established or refurbished accounts have included: Currambine, Lakeside Joondalup, Mt Lawley, Mt Hawthorn and Midland Gate.

Future accounts are likely to arise as new shopping centres’ open, such as Mt Lawley and regeneration of the City.

And with the unstoppable urban spread self propelled by population growth, will no doubt mean a demand for more infrastructure and retail outlets. More customers means automatic sales growth and that means higher profits. This is truly an exciting fun business with unrivalled lifestyle qualities offering the new owner not only low risk, low working hours and holidays’, but also the opportunity for tax deductable travel.

GROWTH POTENTIAL
A very comforting aspect of the business is the broad market that has not been tapped. This together with minimal competition suggest the business is only limited to the extent of the owners input.

Sales: $544,529
Gross Profit: $544,529
Net Profit $355,748.00
Price: $1,270,000 (firm) - All Up

UNMATCHED FEATURES OVER OTHER BUSINESSES
"The purchase price represents excellent value….
…. when comparing the features of this business with other wholesale type businesses"

üProduct demand – no marketing costs
ü5 day week trading
üProducts in constant demand
üRecession proof – business growth in the last downturn
üFun and easy to operate
üOnly 2 owners in 27 years (retirement forced last sale)
üNo trading stock
üSelf expanding customer base
üCurrent location is about10 minutes from CBD
üLow overheads
üMinor working capital
üLong established repeat client base – many in excess of 18 years
ü22 hours week for current owner
üVirtually no advertising expenditure
üNo administration of accounts
üNo cash handling
üNo reliance on passing trade – can be relocated
üLow rent and overheads
üLow staffing requirements of only 2
üNo specialised skills required – new staff can be trained in a week or two
üProfits can be proven 100 percent – all invoices have audit trail
üGreat lifestyle and work balance, with travel opportunities
üStimulating work environment
üPotential to expand faster with full time owner manager

BUSINESS TRADING HOURS
The business operates from 9am until 5pm Monday to Thursday, and on Friday from 8am till 4pm. It is closed on the weekend and on all public holidays, and has the ability to close for two to three weeks over Christmas.

ADVERTISING
Presently, no advertising is undertaken. All promotion is undertaken by third parties at their own expense.

FREIGHT
This business is fortunate in that all freight is at the suppliers expense.

PARTICULARS OF PREMISES
Total Area: 100m2
Monthly rent: $1,785.48

Both the office and showroom are built from double brick, are in excellent condition, and are centrally located on commercial land. The premises are very easy to access with freeway ramps nearby. This business has excellent customer parking.

VENDOR’S ASSISTANCE TO PURCHASER
Because the business is systemised and simple and easy to learn, the vendor need only allow eight hours per day for two weeks to train the buyer in all aspects of the running/managing of the business. This is proven as the current owner had no experience in this type of business prior to purchasing it.

SUMMARY
Any genuine buyer of this business will quickly come to realise that the possibilities for this business are really so numerous that upon examination it can be clearly seen that the choice for the owners is not so much to locate avenues for expansion but to select the ones of greatest advantage from the many available.

IT SIMPLY, JUST DOESN’T GET ANY BETTER THAN THIS!

IMPORTANT NOTE: This business is in the report stage and currently has a finalization date on the 18/08/2010. Delays can occur outside of our control due to waiting for financial data from accountants and other third parties. Performance Business Sales has a policy it is not prepared to release any information on businesses until the owners have checked the accuracy of the completed report. We invite you to send an email to register interest against this business, but often due to overwhelming buyer registrations we may not be able to acknowledge receipt of your enquiry in a speedy timeframe. Instead we ask if you have not received our response by the report target date motioned above, please feel free to contact us by phone or mail for an update on this business.

SO HOW DO YOU GET FROM HERE AND INTO THE MONEY IN 5 EASY STEPS
1. First register your interest by clicking email me under my picture. This is important as we give registered buyers precedent of non registered buyers.

2. Second step - When the report is finalised, we will email and phone you to advise the highly detailed report is now ready to be collected. You will be asked to come to our office where you will sign a confidentiality agreement prior to receiving any identifying information on the business. The business report is designed to save you time frustration and risk as it will virtually provide all the facts upfront allowing you to make an informed decision whether to proceed to the next step.

3. This third step involves an onsite meeting at the business (usually after hours), where you will tour the premises and ask the owners any further questions about the general operations or financial figures on the business.

4. The final step – At this point you will have had enough information to make the decision on whether the business is a match for you. If it is you will want to secure the business from other competing buyers and will ask to make an offer on the business. The offer will be structured in a way that is it is subject to your satisfaction of specific conditions being fulfilled. Typical conditions you might have on your offer will be – Due Diligence (your accountants inspection of financials), reading and approving the lease on the premises, meeting customers, clients and suppliers prior to settlement, Restraint deed agreement signed by the vendor, inspection of equipment, finance approval etc. If conditions are not to your satisfaction you may elect to terminate the contract

5. Finally, once you’re satisfied all conditions have been met settlement and ownership takes place and you’re in the money.


Email Me now and I will give you along with other registered buyers a 7 day lead time prior to the business being advertised for sale.

Graham Nankivell


Phone: (08) 9382 3077
Mobile: 0413 436 766
_________________________________________________________________
Important: Recent analysis of our business sales reflected over 75% of businesses sold were from buyers who registered interest against the business which eliminated the need to advertise the business for sale in local newspapers.

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