Recently Modernised Timber Fencing Business For Sale

Business description

Investment Overview

Location: South Eastern Suburbs of Melbourne

Date Established: 1979

Date Current Owner: November 2010

Asking Price: The asking price involves three elements

Tangible assets $80,000
Stock and WIP TBC (approx. $40K)
Business value $100,000

Annual Turnover: $1,400,000

Gross Profit: $ 739,000

Staff: 3 FT, 1PT

Premises: Lease (one year with further options)

Business Description Summary:

This business was started in 1979 and has been successfully operated ever since. The business is uncomplicated, principally providing fencing services in Melbourne’s eastern suburbs. During the last year the business has introduced a number of “key customer” strategies to develop repeat customers, within the commercial and domestically controlled (e.g. Real Estate Managers) properties in need of fencing.

Sales have been increasing over the last few years and the business has provided a solid platform for cash flow to its owner. The business buys timber / materials from several different suppliers, stores the timber in its warehouse and installs fencing using sub-contract fencers.

While a prior knowledge of the industry would be helpful, the operations are best suited to owners who are prepared to be “hands on” in their management style. The business is uncomplicated and has “best practice” operating systems. The current owner has invested in technologies which allow for a business that delivers its services in a manner customers like.


Included in the sale price is extensive Plant & Equipment including:

Isuzu 8 Tonne Tray
Mercedes 3 Tonne tray
Suzuki Swift
Isuzu 3 Tonne Tray
Toyota Forklift 2.5 Tonne

The business is being put on the market as the owner moves toward retirement. This has been a planned exit strategy and whilst it may appear to be a short ownership period the current owner invested in the company with a long trading history and a terrific brand name; however, a management system that needed overhauling. The current owner believes the health of the business is stable and procedures in place can only result in further growth and profits.

Included in this offer are the following:

? 100% of the fixed business assets of the business;
? A business with a well established and broad customer base and one that is poised to enter a further growth phase;
? A well-established trading name with a reputation for quality and outstanding service;
? The ownership of the necessary plant and equipment to conduct and grow the business;
? Convenient premises located in the heart of the business region and with easy access to Eastlink;
? Excess capacity provided by the current premises that will support substantial business growth;
? A flexible lease.

Operations:

Current hours of operation are not set in stone; the guidelines are:

7.00 a.m. – 3.00 p.m. Monday to Friday

Office hours:

9.00 a.m. – 5.00 p.m. Monday to Friday


Products & Services:

The business principally provides fencing services to residential and commercial customers. The company also has the ability (as a result of its buying power) to supply materials to other fencers and end users. The company has capacity to build decking, retaining walls and other general landscaping items. The only form of fencing not under our offer is brick fencing.

Market / Customers:
The Melbourne fencing market is dominated by timber fencing. The most common style is timber paling fences. Paling fences are the cheapest and simplest form of fencing to erect. The business receives many referrals from real estate agents and local councils, who appreciate the compliance with regulations, insurances, OH&S requirements and level of service provided by the company.

Customers include:

? Homeowners (general public);
? Department of Housing and other Government and Semi-Government organizations;
? Real Estate Agents;
? Builders.

Premises:

The premises comprise offices, and a high roofed spacious warehouse

The existing 1 year lease commenced in October 2011 and is currently in the one year option period. An extended lease term could no doubt be negotiated with the landlord.


Plant, Equipment / Fittings:

A full list of plant and equipment is included in the full report.

Management / Staff:

The business is largely managed by a General Manager. His duties include customer management, yard management, fencing repairs and quality control. The business also employs a works coordinator who purchases stock and schedules jobs and a quoter is responsible completing all quotes. The business also employs a part time secretary.

The retention of employees will be at the discretion of the buyer; however, all entitlements will be met by the current owner

Current staffing is:

General Manager– Customer Management, Administration, Management
Works Coordinator (FT)
Reception and Administration (PT)
Quoter (FT)
Nine exclusive contractors




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

Property information

Real Estate:

Lease

Lease terms:

Flexible

Leasehold rent:

$30,000 per annum

Location:

Eastern Suburbs of Melbourne

Premises details:

See report

Business Operation

Competition / Market:

See report

Reasons for selling:

Retirement

Trading hours:

7.00 a.m. – 3.00 p.m. Monday to Friday

Office hours:

9.00 a.m. – 5.00 p.m. Monday to Friday

Employees:

4

Years established:

1979

Other information

Support & training:

As reasonably requested.

Furniture / Fixtures value:

$80,000 (included in the asking price)

Inventory / Stock value:

$40,000

Relocatable:

This business can be relocated.