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NO STRESS > LOW RISK > HEALTH PRODUCTS WHOLESALE DISTRIBUTION WITH AUTOMATIC GROWTH
Ref No. GN3751MM
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 |
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VITAL HEALTH PRODUCTS WHOLESALER – DISTRIBUTOR (You can’t imagine a better – Safer Business) üGUARANTEED! – Unstoppable Growth üGUARANTEED! – Exclusive Agreements üGUARANTEED! – Essential Products üGUARANTEED! – Ironclad – Low Risk Business üGUARANTEED! – Low Staff and Overheads üGUARANTEED! – To Sell Fast! THIS IS A GOOD AS IT GETS! Never before – never again - will you see such a low risk, recession proof business that rides on the back of population Growth and the Aging Population Tsunami. Here are some cold hard facts to prove this business will make you an absolute fortune in a short space of time… The current resident population of Australia is estimated to be 22.4 million, with: 1. one birth every one minute and 47 seconds, 2. one death every three minutes and 44 seconds, 3. a net gain of one international migration every one minute and 54 seconds leading to an overall total population increase of one person every one minute and 13 seconds. 4. ABS projections of population increase estimate between 30.9 and 42.5 million people by 2056 (depending upon fertility rates and net overseas migration). Every single one of those people will require some form of health treatment throughout their lives. That provides an enormous and growing market into which this business hassolid supply agreements with most of its stable long established customer list spread throughout WA and other parts of Australia. This business wholesales and distributes a range of health related products, ensuring ongoing demand as used items require immediate and sustained replacement. Its customer base includes the who’s who of industry and some of the largest blue chip operations in its selected niche market sectors. It has what can only be described as a massive self propelled growing customer base where the future potential to increase profitability is really so numerous, that upon examination it can be clearly seen that the problem for management is not so much to locate avenues for expansion, but select the ones of greatest advantage from many available. Also driving demand is the fact that Australia has one of the highest “life expectancies at birth” rankings in the world at 80.4 years, with females born from 2000 onwards expected to live 82.6 years and males expected to live 77.4 years – and of course as people age their health care needs become more extensive, and expensive. Even better news for this business is ABS (Australian Bureau Of Statistics) projections of increased life expectancy by 2056 range from 85 to 93.9 years for males and between 88 and 96 years for females indicating that, combined with increasing population numbers, the Australian health system is going to need to expand significantly. That means the funds available to purchase from suppliers, like this business, is likely to continue to rapidly increase. This is a business with substantial advantages, not only over competitors within the same industry but as against many businesses generally: üEssential recession-proof products üProducts linked to automatic growth industries As outlined above, the growth in population, and Australia’s aging trends, will ensure automatic market growth. üSole agency supply agreements within WA üSole agency supply agreements for Australia This imposes a very high entry barrier which any newcomer to the market must first overcome, and makes additional competition unlikely. BUSINESS OVERVIEW The business, warehouses and distributes a large range of products as agent for a large number of manufacturer / importers. It has been in the market for over 20 years (16 of those in the hands of the present owner) and is staffed by two full-time and four part-time personnel. The business generally “runs itself”, requiring intervention from the owner only to respond to quotes and to oversee business expansion and planning. The compact size of the business and the dedicated staff employed enable the owner to work “on the business rather than in it”. The business’s success in the WA market is due to its local warehousing of stocked products, allowing the business to achieve a rapid response time from customer order to delivery of within two working days. This, together with the excellent suppliers who provide cost-effective products has resulted in a more efficient company that generally meets or exceeds the needs of its customers. The business has superb computer systems to ensure up-to-date stock and account information and it ensures the integrity of its operations by having “systems to check the systems”. ESTABLISHMENT The business was founded over 20 years ago and has had only two owners since inception. The current owners purchased the business in1994. During it’s life the business has moved to larger premises in order to meet growing demand. HISTORY This business has grown through the acquisition of profitable agencies throughout its history and the subsequent growth in demand for the product ranges of those agencies. Agencies have been obtained both by approaching suppliers and by invitation, the latter testament to the high regard in which this business is held within the industry. No agency loss has occurred in the company's history, and the vendor believes open and constant dialogue with the Principals of the agencies has helped maintain this status. The business is in the enviable position sales are self propelled by population growth and the aging population. In total the business distributes approximately 450 product items, most of which are on a re-order basis and are therefore held in stock. CUSTOMERS The business has a long established customer base including Government departments. Location of customers and their percentage of overall sales: Approximate % of sales üMetropolitan Perth: 77.3% üCountry WA : 2.8% üOut-of-state: 32.2% Customers communicate orders to the business predominantly through email (8%) and fax (90%). A faxed hard copy or an email is a legally recognised official order. Around two percent are received by phone. SEASONALITY With the exception of only one product there is virtually no seasonally affected products. KEY CUSTOMER FEATURES üAutomatic orders without sales staff üLarge repeat order customer base üNo one customer represents more than 10 percent of overall sales. üWide geographical spread of customers üRepeat order monthly or weekly clients üNinety five percent of customers reorded on a regular basis. üVirtually No Bad Debts PARTICULARS OF PREMISES The vendor believes that the present site is an excellent location for the business, but that it could also be relocated if desired. They are available on a negotiable lease with an option to purchase likely to be available in the future. The low monthly rent will be $3,500. The premises occupy a total of 348m2 comprising: Office: 55m2, , Warehouse: 290m2, Outside uncovered area: 55m2 DEBTORS AND CREDITORS Debtor terms are 30 days from end of month. All but two (one very minor) customers adhere to this arrangement. In 16½ years of business bad debts have been less than $1,000. Creditor terms are 30 days from end of month. TRADING HOURS Monday – Friday: 8:00 am till 5:00 pm ADVERTISING Another sign of a strong business, is the level of advertising it must undertake to generate sales. This business undertakes NO ADVERTISING whatsoever, giving the new owner the opportunity to further increase sales by implementing an advertising program. |
| Sales: | $3,686,625 |
| Gross Profit: | $1,038,050 |
| Net Profit | $688,414.00 |
| Price: | $2,700,000 |
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KEY FEATURES OVER OTHER WHOLESALE BUSINESSES
LOW RISK
üGovernment contracts
üNo experience necessary
üMinimal reliance on sales staff
üLimited competition
üHigh barriers to market entry
üLow advertising budget to generate sales
üNot reliant on passing trade
üEssential products
üRelative monopoly in the market place
LIFESTYLE - EASE OF OPERATION
üFive days per week trading (weekends are always free)
üOwner can take holidays
üOwner has averaged four to six weeks per annum over the last five years.
üCould be run under management
üProfit based on one owner managing the business.
FINANCIAL
üCurrent year to date sales are up
üLong term historical growth
üLong established repeat client base and supplier list.
üNot reliant on major agencies or a few large clients, thus offering excellent stability.
üSecure agency product lines
üExceptionally secure supply arrangements and exclusive agencies.
üRecent capture of new customers.
üLong life equipment
GENERAL
Bad debts are virtually non-existent so non payment is a very limited risk.
Profits can be proven and the business has a complete set of verified accounts which clearly show its profitability…
…And to top that all off – the owner has just advised developments just to hand are going to eclipse the 2010 net profit that the business price was based on. And that’s not heresay – contracts are currently being written that will confirm the business is about to have a huge upward swing in profitability.
The old saying was never so true – YOU GET WHAT YOU PAY FOR! And what you are paying for here is a Safe – Secure – Easy run business that is positioned for automatic growth with little effort from the owner. After all there is just too much at stake to buy cheap, high risk businesses where effort, stress and failure is high.
NO OTHER BUSINESS – will be a match against this highly recommended essential product wholesaler.
This Business will sell fast – first in best dressed.
IMPORTANT NOTE: This business is in the report stage and currently has a finalization date on the 03/09/2010. 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.
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. Email Me
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 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
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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.