Rapid Growth Building Services Equipment Hire Leading Brand For Sale

Business description

This outstanding and uncomplicated business has successfully traded in a regional Victoria city for 10 years. The business hires out guard rails and scaffolding used during the construction of commercial and domestic buildings. The products require no maintenance, have a very long life and are generally easy to erect.

The business has no employees, utilises a sub-contractor for installations, has very little competition and has built an enviable reputation over the years to become a dominant player within the building services sector of its marketplace.

The vendor is now intending to retire, and as no succession plan is in place, this outstanding business is being offered for sale. A very realistic asking price has been set to return outstanding profits to the new owner.

Some salient features relating to this investment opportunity are:

Ø Consistent sales growth each year
Ø Projected 2008 EBITDA of $540,000
Ø Strong cash flow
Ø Operated with no employees
Ø Leading brand awareness
Ø 5 day working week – no weekends
Ø Outstanding growth potential
Ø Plant & Equipment of $420,000 included in asking price
Ø Could be run under management
Ø ROI Potential 35%+ under management

Included in the sale of this business are:

Ø 100% of the business assets of the business
Ø A business with a well established and broad customer base and one that provides a consistent strong cash flow;
Ø A well-established and well recognised trading name with a reputation for quality and outstanding service;
Ø Existing stock
Ø A highly skilled sub-contractor
Ø Goodwill built up over 10 years
Ø An excellent and flexible lease
Ø Spacious premises including a large shed and covered storage area, extensive yard space and a small office.
Ø Excess capacity provided by the current premises that will support substantial business growth;
Ø Premises that are strategically located in an industrial area with excellent access to major arterials;
Ø The knowledge and trade experience of the current owner who is willing to train the new owner(s) during a suitable transition period if so requested.


It is anticipated that the qualified and experienced sub-contractor would be willing to continue with the business.

This investment opportunity would ideally suit an individual or partners with management skills who could drive this business to the next level of growth and efficiency. Alternately, this investment would suit an established business looking to expand or diversify its operations and significantly increase cash flow. The strong business cash flow could support the cost of running the business under management, while still offering an excellent return on investment. Under the management of an owner/operator, outstanding returns could be expected.



Operations:

The current hours of operation of the business are generally:

Monday to Friday: 8:00 – 5:00

The current owner runs the business by himself and hires a sub-contractor to deliver, erect and remove the company’s guard rails and scaffolds from building sites. Daily operations include:
Ø Taking Orders
Ø Organizing stock
Ø Truck loading
Ø Quoting 1-2 days per week
Ø Scheduling jobs



Products / Services:

The business supplies, installs and removes the following hire equipment used on commercial and domestic building sites:

Ø Guardrails (domestic and Commercial)
Ø Modular Scaffolds
Ø Roof Scaffolds
Ø Light Duty Work Platforms
Ø Aliminum Stair Access Towers



Premises:

This business is strategically located in an industrial area in an outer suburb of a regional city in Victoria.

A flexible lease term with options will be offered on the premises at a rental rate starting at $15,000 per annum + GST and outgoings.

The premises includes a large shed and covered storage area, extensive yard space and a small office.


Equipment / Fittings:

A comprehensive list of Plant & Equipment will be provided during due diligence.

All existing Plant, Equipment and Fittings with a replacement value estimated at $420,000 are included in the asking price.

Management / Staff:

The owner currently manages the business. His activities include:

Ø Organizing stock
Ø Truck loading
Ø Quoting 1-2 days per week
Ø Scheduling jobs
Ø Servicing equipment
Ø Receiving and processing orders

The business employs no staff. A sub-contractor delivers and erects the guard rails and scaffolding on-site.

This business could be purchased as an investment and run under management if desired.


Growth Opportunities

The vendor believes that this business, under the direction of a more motivated and dedicated owner, could grow significantly in sales.

Growth will be driven naturally due to more rigorous implementation of Occupational Health & Safety “Code of Practice” guidelines which require the placement of guard rails during the construction of most building roofs. Growth could also be driven by initiating a more aggressive marketing strategy covering a wider geographic area, utilizing the existing and other databases for marketing purposes.


Transition

It is anticipated that the existing sub-contractor would choose to continue with the business following the sale. The vendor is happy to provide any required training during a suitable transition period.

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Property information

Real Estate:

Lease

Contact the seller