Price Reduced Paper Merchant and Converter Business For Sale

Business description

Business Description Summary:

This paper conversion and trading business was established in 1993 by the current owners. The company has invested in a reasonable amount of equipment to distinguish it and give it an edge over the competition.

Operations:

The business operates a five day week from Monday to Friday.

Factory hours are 6:30 a.m. to 3:00 p.m. and
Office hours are 8:30 a.m. to 5:00 p.m.

The business has two distinct divisions:

(i) Converting

The business performs various functions on behalf of clients: processes are carried out on the clients stock. The main functions are cutting clients’ paper to specific sizes and salvaging paper on behalf of clients.

(ii) Paper Merchanting

This consists of buying and selling of paper product from regular suppliers and reselling it to regular customers. An important aspect of this side of the business is to take advantage of any “spot parcels” that become available. For this reason inventory is high as it represents a major profit opportunity. Current stock level is around $750 000 but this can be reduced if required by a potential purchaser.

Market / Customer:

Customers are divided into two groups in line with the separate divisions. All customers operate 30 day accounts, and the bulk of sales is made to the merchanting customers. There are between 200 and 300 regular customers.

The current owner has had the desire to move on to other areas of interest for quite a few years, and has not pushed the business to further growth. Virtually no marketing has been undertaken, with marketing activities limited to a monthly ‘specials’ email to existing customers. The owner believes that significant increases in sales could be achieved by a more aggressive approach, and would be prepared to work on for the new owner on a part time basis for some time for training purposes, if necessary, and to provide increased sales activities.

Premises:

The company operates out of leased premises in south east Melbourne and current rental is $8,600 per month. The premises are leased until 1st January 2010, and can be extended. The area of the premises is 20,000 sq. ft., and there are two offices and the usual facilities. Access is excellent with three separate roller doors for handling merchandise.

Plant/Equipment / Fittings:

The investment in plant, which is currently value at $500,000, has been made strategically over the years. In particular, the some machines have been acquired that perform functions not readily available elsewhere and this gives the company a strategic advantage over most of its competitors. It is one of the only two independent paper converters in Victoria who can provide these services.

Management / Staff:

The owner attends to sales and administration and there are four full time and four part time employees.

A generous hand over period will be granted as well as ongoing consultation support, if required.


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

Property information

Real Estate:

Lease

Lease terms:

Approx. 2 Years with 1 x 5 tear option to renew

Location:

Commercial/Industrial Park

Other information

Expansion potential:

Plenty

Support & training:

A generous hand over period will be granted as well as ongoing consultation support, if required.

Trading hours:

5 Day Week

Inventory / Stock value:

$650,000