Transworld Business Advisors - Osborne Park Phone : 0411 33 ****
James Randell
04113 ****

04113 ****

Hot Water System Supply & Installation - Growing Every Year

Listing Id : 247274

Location : Western Australia - Cannington -Perth

Category : Plumbing, Trades and Tradesmen, Building and Construction

Asking Price : 400,000

Business description

Business type
Mon-Fri (fixed location plus mobile)

Location details
13 km's South East of the Perth CBD
Generous yard space with office and workshop buildings

Financials (per annum)
Revenue $2.1M
Rent $40K
Expenses $1.94M
Net Profit $215K (before owner's salary)

Since the business started trading 10 years ago it has gradually been growing its market share, to the point where the owner believes they currently supply approximately 4.5% of Perth's Solar Hot Water market and an estimated 7.2% of Perth's Heat Pump market.

There is significant potential to increase market share as well as grow the markets themselves, particularly heat pumps. It is estimated that solar hot water and heat pumps account for only about 10% of the hot water systems on homes in WA.

No prior experience required and owner is willing provide a generous handover period to ensure the purchaser has all the necessary knowledge to operate the business smoothly and successfully.

Monday - Friday
7:30am to 5pm
(Weekend work by appointment)

1 x Manager (majority owner)
1 x Manager (minority owner)
2 x Tradesman
1 x Trades Assist
2 x Admin

Reason for sale
The owner has other aspirations which he wants to pursue. He always intended to sell the business after a certain duration and has set up the business so that transfer of ownership can happen seamlessly.

About the business
Hot water systems are a necessity item for households. They're required for all homes and then have a finite useful life. This means that replacements of (and repairs to) existing hot water systems is consistent business and is resistant to broader economic ups and downs. This is highlighted by improved performance over the past three years during a period of economic decline in Western Australia.

The business wins work via its well established and reputable brand. The sales function is largely taken care of by the sales team who answer the phones, with technical support available by the two owners / managers. There is no doubt that this is an exceptionally strong business model, which is positioned for continued performance and growth into the future.

Key Points
Well established business
Consistent sales and profitability (recession proof)
Huge market
Distinct brand
Large customer database
Diversified products and services
Good staff
Efficient operation
Excellent systems

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