Performance Business Sales Phone : (08) 94 **** Ian Lee
08 94 ****

04555 ****


GOLDMINE OF A BUSINESS

Listing Id : 249817

Location : Western Australia -East Wa

Category : Painting - Retail/Services, Retail, Hardware

Asking Price : $650,000

Business description

Well Recognised Branding - Not a Franchise!


THE BUSINESS!

ITS GOT HISTORY- Established over 22 years with consistent growth of 20% over the past 3 years. So essential are the products it is a given that it will continue to grow.

ITS GOT GREAT UNDER MANAGEMENT PROFIT- The business has management in place and a total workforce of just TWO. Returning $220,2**** **** profit to the purchaser or a 35% return on investment.

ITS PRODUCTS ARE ESSENTIAL - Paints and coatings are extensively used for buildings and machinery. It not only impacts the protection of the structure, machinery or vehicle interior or exterior appearance but also influences the equipment’s structure and longevity. Paints and coatings are special protective applications that prevents corrosion and damage from weakening materials and are an absolute must-have.

IT’S WELL POSITIONED IN THE MARKET -The business is the market leader in its location when it comes to its market. As the wholesale distributor for an international brand - which is the biggest and most recognised brand in the market, it also has a reputation for friendly high-level service and expert advice. With a solid base of regular customers and repeat business built up mainly by word of mouth over many years, it is widely regarded as the go-to place for its products.

IT’S 70% TRADE BASED - The business has a wholesale and retail market which supplies into Manufacturing – Automotive – Industrial and Consumer markets. Such a great mix should one falter the others take up the slack something not often seen in a business.

IT’S UNDER FULL MANAGEMENT WITH LOW STAFF - The business employs 2 full-time staff. Both are cross-trained in each other’s work, and one of them is the manager who looks after the daily operations. They run the day to day operation of the business without supervision. The current owner lives a long way away from the business and only relieves staff on occasions it is possible to also employ a casual employee to fill that role should the owner wish to do nothing.

NOT EFFECTED BY COMPETITORS -The business has never had any problem in handling competition. Its main competitors are big box stores which have been present for a prolonged period of time. They are not able to wholesale products and don’t carry a specialized range of products like this business which gives it an edge with its trade-based clientele.

EXCELLENT CASH FLOW – A substantial portion of debtors are collected on a COD basis approximately **** **** % with the balance on 30-day terms.

EXCEPTIONAL CUSTOMER BASE- The largest customer only represents approximately 5 % of the businesses sales therefore placing less risk to the business should a customer be lost.

POSITIVE TRENDS - The global paints & coatings market size was estimated at 43.40 million tons in 2016 and is expected to grow significantly over the next 5 years owing to its growing utilization in various end-use industries such as building, automotive, marine, mining construction and industrial markets. There is a general upward growth trend at present with gold mining and nickel mining increasing and a return of confidence to the sector as it begins to recover from the downturn which followed the end of the mining boom. The business is well positioned to take advantage of this, having survived the downturn in excellent shape.

UNDER MANAGEMENT PROFIT - A competent and reliable manager makes it easy for the owner to oversee the business operations. The current owner works less than 10 hours per week this comprises mainly of book work and oversee with occasional relief work of the staff.

WIDESPREAD GROWING REPEAT CLIENT BASE - The Growing list of customers currently numbers approximately 120 with no one customer representing more than approximately 5% of the annual sales. This has been a deliberate policy employed by the vendor to make the business less susceptible to major sales downturns resulting from a loss in a major customer. This is a key feature not often found in businesses of this caliber

BARRIERS TO MARKET ENTRY - Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would face the following issue:

  • Competing with a well-branded dealer.
  • Obtaining and fitting out top-class premises
  • The lengthy period required to build up goodwill and on-going repeat business
  • The time to build trust with major commercial/industrial customers

OPERATIONAL SYSTEMS MAKE IT EASIER - The current owner had some industry experience prior to commencement of the business and set about employing staff who could handle the operational aspects of the business whom had no experience. The owner and his staff have built up a lot of knowledge, but this knowledge is instantly available to a new owner due to the operating systems which are in place, and in particular the excellent support available from its suppliers.

KEY FEATURES over other businesses include.

HIGH GROSS PROFIT MARGIN - Self-propelled sales and a high gross profit margin of over **** **** % is indicative of a business which is both solid and in a strong growth phase.

HISTORICAL ONGOING GROWTH - The business has continued to record increases in sales and gross profits from inception and on this basis the owner sees no reason why this trend will not continue.

ESSENTIAL PRODUCTS - The growing Western Australian population will require this business's products, as coatings and associated products is an essential product for both domestic and commercial/industrial purposes.

LOW RISK - The business enjoys automatic growth across a range of market segments, has an excellent long-established reputation as the leading one-stop-shop business, and its relationship with a major brand means it can meet the prices of any competitors and still make healthy profit margins.

LOW HOURS BY THE OWNER - Cross-trained staff and a competent, a reliable manager makes it easy for the owner to oversee the business operations.

LONG ESTABLISHED - The business has been servicing its market for some 20 years with very little sales or marketing effort turnover has continued to grow year on year, purely through reputation and word of mouth.

LOW STAFF - Currently, the business employs just 2 full-time staff

NO RELIANCE ON SALES STAFF - The clear majority of sales are simply self-propelled which means that the current owner does not have the overhead of running a sales force. However, it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly be increased if need be.

HIGH LEVEL OF CLIENT LOYALTY - This has been built up over 20 years of good service, resulting in strong goodwill

OWNER CAN TAKE HOLIDAYS- The owner takes frequent holidays as the manager and staff can operate the business in his absence.

BUSINESS IS UNER FULL MANAGEMENT - Despite the scope of the business it requires little input from the owner to sustain; a skilled and experienced Manager takes care of the day-to-day management and the other staff member looks after the operational aspects.

CURRENT YEAR TO DATE SALES ARE UP - The sales have continued to increase in the current year, and this is likely to continue.

MINOR OVERHEADS - Given the size of the annual turnover, overheads are relatively small.

PROFITS CAN BE PROVEN - The business has a complete set of verified accounts which clearly show its profitability.

HIGH ASSET MIX IN PURCHASE PRICE - The business reflects a high percentage of the purchase price is made up of tangible stock and equipment. Compared to low asset businesses.

FAST PAYMENT OF ACCOUNTS - A large portion of debtors are collected on a COD basis - approximately 45% with the balance on 30-day terms.

If you are looking for a business that…..

Operates under FULL management

Has Minimal hours

Has Reliable cash flow.

Has Interesting and diverse ranges of products.

Has self-propelled sales

Has Essential products.

Has a Solid history

Then don’t miss this outstanding opportunity!

Quality businesses such as this never last long on the market register your interest now to receive a detailed business report when available.

CONTACT US today to receive a detailed business profile – the first step to your securing this exciting opportunity. Read our full report to see that you are buying future profitability ready to grow from day one. To make an informed decision please contact either Ian Lee or Pat Keenan-Smith

Unlike other brokers who provide a couple of pages of basic information, the high detailed report on this business will evaluate, products, markets, facilities, sales potential, competition, financial analysis and much more. This usually runs over 50 pages, analysing everything you need to know to make a quick but informed decision that will save you time, money, frustration and risk.

In dealing with Performance Business Sales you will find our carefully selected businesses listings are of a higher quality and therefore reflect lower risk than most businesses offered by our competitors. It will truly be worth your while to confirm your interest in this outstanding business to avoid disappointment.

Important: Recent analysis of our business sales reflected over 75% of businesses sold were to buyers who registered interest against the business before the report was finalised, which eliminated the need to advertise the business for sale in the media.


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