Premium Wood And Steel Staircase Manufacturer For Sale

Business description

Business Description Summary:

This successful business was started by the current vendor 18 years ago, and initially operated as a manufacturer of timber staircases. About five years ago the offering was expanded to include steel staircases. About 15 years ago a second partner was taken into the business and currently owns 30% of the equity of the business. This arrangement offers convenient flexibility for intending purchasers because the partner is agreeable to any of the following situations regarding his participation:

1. To be bought out totally as part of the sale
2. To remain on as a 30% partner
3. To be bought out and remain as an employee. He will be prepared to sign a employment contract at current earning levels.
Operations:

Operational hours for the company are:

Monday to Thursday 7.30 a.m. to 4.00 p.m.
Friday 7.30 a.m. to 1.30 p.m.

The major shareholder only works 3 – 4 hours a day, spending more and more of his time on other private pursuits, and this is the reason for his decision to sell. His main role is motivational and managerial, and only occasionally gets involved in doing quotations. The business would not be affected by his departure, and in fact he was absent for three months during 2009 without any detrimental effect. His partner works a normal week and clearly adopts the role of general manager and runs the company on a day to day basis.

Market / Customer:

The company’s target market is domestic and some commercial buildings. Business is currently split between the private sector and builders as follows:

• Builders 65%
• Private 35%

Bad debts have been insignificant since the 2000 financial year.

The company currently works with up to 100 regular building clients, but the customer database exceeds 1,000. Regular builders pay in full, 14 days after completion, while all other customers pay 50% deposit and 50% on completion. The top ten builders contribute between 25% and 33% of total sales.

The company operates throughout Victoria, because many of the larger building clients have developments throughout the state.

Products / Services:

Timber staircases, being the original core of the business, still commands the dominant share of the products provided by the company. However, the addition of steel to the product range has given the company far greater scope for expansion. There is still significant room for expansion in the timber staircase market. However, the potential for expansion in the steel market is far greater, and has far less competition. The steel staircase division currently employs four people and the facilities could cope with another five, and the vendors believe that there is sufficient capacity in the market to cope with this projected output.

Business is currently being restricted to existing customers, with very few exceptions.
Premises:

The company operates out of leased premises covered by two separate leases.

Building 1: Steel and showroom. This building 4,500 sq.ft. in extent with a small part devoted to the showroom, and offices on the mezzanine floor. Annual Rental is $38, 400

Building 2: Timber and offices. This building is 4,200 sq.ft. with three offices on the mezzanine floor, a reception downstairs, and a factory of 4,200 sq.ft. The lease expires on 21 February 2011 and current rental is $32,400 per month.
Plant/Equipment / Fittings:

All plant, fixtures, fittings and equipment are in good condition. A full list will be provided to interested parties.
Management / Staff:

All operational staff are qualified stair builders or machinists, boiler makers or steel smiths.

Staff is normally acquired by training apprentices or buy acquiring partially trained staff.


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

Property information

Real Estate:

Lease

Leasehold rent:

$70,000 per annum

Location:

Quiet Industrial Park

Premises details:

See Report

Size in square feet:

8,700

Business Operation

Expansion potential:

Significant

Trading hours:

Monday to Thursday 7.30 a.m. to 4.00 p.m.
Friday 7.30 a.m. to 1.30 p.m.

Employees:

22

Years established:

18

Other information

Support & training:

Available

Inventory / Stock value:

$100,000

Relocatable:

This business can be relocated.