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**SOLD**MAJOR PROJECT JOINERY MANUFACTURER AND SUPPLIER**SOLD**

Added by Edenexchange

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Listed in Business For Sale

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KEY STRENGTHS

Long established with 30 years of goodwill

Growth in salesConsistent gross profit margins,

Consistent net profit and return to owner

ABOUT THIS BUSINESS

Rarely does a business of this quality and potential come onto the market.

• Long established with 30 years of goodwill
• Growth in sales
• Consistent gross profit margins
• Consistent net profit and return to owner
• Untapped potential because of the owner’s lifestyle choices

The business was started more than 30 years ago by the current owner. The business started off doing carpentry and joinery but has been exclusively employed in joinery work for the last 20 years and was incorporated as a company in 2005.

The first employees commenced work in 1998 and the owner’s son joined the business ten years ago. Staff has continued to grow to cope with additional work and is fully trained and loyal.

The company now regularly is involved in supplying joinery for developments such as:

• Hospitals
• Police Stations
• Fire Stations
• Universities
• Aged care facilities
• Multi-apartment developments
• Shop fittings

The company has deliberately operated at a comfortable level to suit the lifestyle of the owners and growth has been contained in view of this. Significant amounts of additional business are available to the company and can be achieved with the employment of additional employees or contractors. However, the owner does not wish to commit to this kind of growth and has, therefore, decided to put the business on the market.

Operations:

Operating hours are:

7.00 a.m. to 3.30 p.m. Monday to Friday

Stock levels are very low because of the efficient manufacturing techniques facilitated by the equipment that is installed. Stock level is usually around $10,000 to $15,000 and is included in the asking price.

Market / Customer:

Because the company works as an independent contractor to developers and builders, its target market is defined more by size than personality. Contracts of $80,000 and upwards are the target market. The business works only with respected builders and architects and new and unknown builders are requested to pay a deposit and/or provide bank guarantees. Work is closely monitored and progress payments strictly adhered to. New builders will not be taken on unless they are recommended by an architect, and pass a fairly rigorous due diligence investigation carried out by the company.

A typical year would see 12 to 15 active contracts, with no single contract representing more than 20% of sales.

The company undertakes very little, if any, marketing activities. This is because the current owners have deliberately shunned additional growth in favour of lifestyle considerations. Clearly the business is doing very well without any overt marketing and advertising. However, the potential that can be unlocked by implementing modest marketing initiatives is astonishing.

Simple steps which the vendors would undertake as first efforts in this area are:

• Creation of a website. (Already suggested by some clients)
• Employment of a sale person.
• Adoption of a more aggressive approach to new work, which is currently being turned away.
• Modest advertising activity.

Competition:

There are many small joinery operators, but very few with the facilities to take on larger or complex contracts. Most opposition companies have to outsource a lot of the work, which makes them slower and less price competitive, whereas the business can produce the most demanding joinery and deliver quickly.

Premises:

The current premises are completely adequate for current operations and could quite easily cope with significantly higher levels of activity.

Ground level: Factory, office, glue spray booth, large roller door
Mezzanine: Storage
First floor: Large office
Extent: 580 square metres

The vendors, being owners of the property through an associated entity, suggest a five year lease be negotiated at a commencement rental of
$43,000 p.a. plus outgoings, which is in line with current rental being paid.

Plant/Equipment / Fittings:

Plant and equipment included in the asking price is all fully owned and free of any financial encumbrance and is valued by the vendors on a going concern basis at $680,500. A detailed list is included in the information memorandum.

Management / Staff:

The business is run by the Managing Director and a stable and well trained staff. Details of their roles are fully described in the information memorandum. A generous handover period will be provided and any ongoing short to medium term role, if the purchaser requires this, can be discussed.

Current staffing level in addition to the managing director is:

Full time 7

Part time 1

Casual 2

Contractors 2

Financial:

The financial results of the business are exceptionally strong with a very healthy profit which will provide a purchaser with an excellent return on investment with huge potential for expansion and growth.

The financial results are fully divulged and analysed in the information memorandum.

To receive ADDITIONAL INFORMATION on this business, please contact Steve Lentin.

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