THE HOLY GRAIL OF COVID19 - Arguably The Best South West Distribution Business For Sale

THE HOLY GRAIL OF COVID19

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Sales Records Are Meant To Be Broken!

YOU’RE JUST IN TIME FOR THE NEXT GROWTH PHASE

 

THE HOLY GRAIL

OF

COVID19

Super Sonic - Sales Growth

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Want Proof?

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COVID19 QUARTERLY SALES…

…TRIED >>> TESTED <<<PROVEN

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It just doesn't get better than this!…

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Jan to Mar Sales Qtr: 2019 = $367,662 versus 2020 = $465,035...

...That's a 26% Increase

Apr to Jun Sales Qtr: 2019 = $589,165 versus 2020 = $814,326...

...That's a 38% Increase

Jul to Sept Sales Qtr: 2019 = $424,055 versus 2020 = $627,000...

...That's a 48% Increase

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UNDER-MANAGEMENT…

…When Owner Takes Extended Holidays

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2019 Net Profit: $392,487 = Owners Holidays  = 91 Days

2020 Net Profit: $541,127 = Owners Holidays = 48 Days

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Authorised International Distributorships

Essential To

Agricultural And Government Departments

 

This Business is safer than most wholesalers because it locks-in customers by offering EXCLUSIVE aftermarket fully-fledged solutions rather than merely distributing a range of products.

As reflected above, the first quarter of the current 2020/21 financial year, the sales stampede has continued to grow by a massive 48% over the same period of the previous year.

The continuing upsurge in revenues is directly related to a combination of exclusive, protected essential products, population growth and existing customer activity.

 

BONUS PROFIT KEY FEATURE:

It would be reasonable to expect the new owner is likely to generate a substantial increase in net profit above the 2019/20 profit result of $541,127 given the last three quarters have reflected 25%, 38% and 48% increase over previous year’s corresponding periods.

It has achieved these remarkable results despite trading in the worst economic conditions – the Covid19 state-wide shutdown and the following poor economic conditions.

The present owner believes if he were to retain and delay selling the Business until the end of the financial year, the purchase price would be substantially higher given any increase in the net profit will amplify the asking price by a factor of about 3.

If you still remain unconvinced – it will take you about 5 minutes to recalibrate the 2019/20 net profit of $541,127 using your own conservative sales percentage increase together with historical data from the financial accounts reflected below:

2019/20 PROFIT AND LOSS FACTS:

• ANNUAL SALES: $2,242,027
• GROSS PROFIT MARGIN: 40%
• ANNUAL GROSS PROFIT ($): $870,865
• ANNUAL EXPENSES: $366,363
• ANNUAL ADJUSTED NET PROFIT: $541,127

The above results and subsequent rising sales and profits have been achieved despite the COVIDI9 epidemic and the conservative management lifestyle of the existing owner.

Why would anybody sell a business as good as this?

The answer is simple. During the term of ownership, this Business has rewarded the owners with a  lifestyle in its internationally acclaimed south-west township.

For the past 18 years, the owners have invested profits generated from the Business to build a real estate investment portfolio for their future retirement.

However, in recent times, one of the owners was diagnosed with a serious illness resulting in hospitalisation and treatment in Perth, which has changed the owner’s direction in life.

Unsurprisingly, they have decided to retire from the Business to spend more time visiting their out-of-town children and enjoy their future retirement nest egg.

If you think it gets better than this!…

…then keep on dreaming!

• LOW RISK >> Increasing sales and net profits – Even the Covid19 state-wide shutdown and the following economic downturn has failed to put a dent in this Business’s unstoppable sales growth.

• LOW RISK >> The 2019/20 net profit of $541,127 is about to be blitzed – Current sales are reflecting quarter-on-quarter increases well above the previous year’s results. Any new additional profit could potentially be used to offset business acquisition loan repayments.

• LOW RISK >> Secure Territorial Agency Rights – Locks in customers with little direct competition.

• LOW RISK >> Essential Products and Services –  many are required by safety, cost savings and maintenance.

• LOW RISK >> No Experience Required –  The current Owner had no industry experience before purchasing the company some 18 years ago. The Business has well documented proven systems and procedures that make learning the day-to-day operations as easy as possible.

• LOW RISK >> A Low Number of 4 Full-Time Staff  –  means little chance of staff hassles or stress.

• LOW RISK >> “Cash Is King” –  most clients pay for goods on delivery, making this a 90% cash flow business with no financial stress.

• LOW RISK >> Essential Products and Services –  many are required by safety and maintenance, making this Business less dependent on discretionary spending.

• LOW RISK >> High Gross Profit Margin –  the Business reflects a constant high gross profit margin around 40%, which is usually only found in low-risk monopoly distribution businesses.

• LOW RISK >> Secure growing list of customers – currently numbers over 8,000 with no one customer representing more than one percent of annual sales. This is a key feature not often found in businesses of this calibre.

• LOW RISK >> High Level Of Customer Loyalty –  the Business generates over 80% of sales from return customers and word of mouth referrals.

• LOW RISK >> –  High Asset Mix in Purchase Price Breakdown –  Risk reduction is further enhanced by the fact around 30% of the asking price is made up of stock and plant equipment, which is more than most other businesses.

• LOW RISK >> Preferred Government Supplier – Automatically generates both new and aftermarket sales.

• LOW RISK >> No on-road salesforce – Most sales are self-propelled, which means that the current owner does not have the overheads of running a dedicated salesforce.

• LOW RISK >> No bad debts –  During the vendor’s ownership, the Business has not experienced any large bad debts. The majority of large orders are secured with a 20 percent deposit which must be paid in full before collection or delivery of goods.

• LIFESTYLE >>> Could Ideally Be Placed Under Full Management – means you have enough profit even after paying a manager a full-time salary.

• LIFESTYLE >>> Location Of The Business Is In WA’s Top Tourist Destinations –  live and profit in a stress-free environment where most people pay to holiday each year.

With a proven range of high demand, iconic internationally acclaimed products that serve many diverse applications are rare attributes not often found when looking for a low-risk investment. The Business’s long-established solid 8000 strong customer base, which is broadly based over many market sectors has been the main factor in reinforcing sales and profitability for over two decades.

Even so, the Business has not yet realised its full potential, and there are many significant prospective revenue growth areas in its diverse range of target markets and new products about to be launched that are ready to be exploited by the new owner.

How Can Sales Grow So Fast >>> In Poor Economic Conditions?

Answer 1 – Everything distributed by this Business is in demand and is expected to continue for the long-term, which explains the consistent sales revenues of around $2 million from this Business which serves a need for essential products to a fast-growing local population.

Answer 2 – Independent market research predicts the sales of just one of the Business’s product lines in Australia will reach $1 billion, growing at a rate of 35 percent between 2018 and 2024. And another product is growing at a  Compound Annual Growth Rate of 4.74 percent between 2017 and 2021 globally.

Answer 3 – As well as distributing the most sought-after high-quality iconic branded products, the Business also provides an extensive range of ongoing replacement parts & accessories for end-users, retirees, emergency services, businesses and Government Departments

Answer 4 – Its nearest direct similar size competitor is  50 to 100 kilometres away, making this a virtual monopoly in its town and the surrounding area.

THE HOLY GRAIL OF COVID19 – Arguably The Best South West Distribution Business For Sale

Proven Management Team In Place

The current owners have always taken extended time away from the Business. During their absence,  it has been successfully managed by the existing employed department manager.

And as a back up to the current manager, the Business has two other capable employee department supervisors who also have excellent management experience, which will be advantageous if the Buyer wishes to place the Business under full management and is not wanting to be involved in the day to day operations.

So if you’re seeking a simple, easy-to-operate business with a minimum of stress, and one which is a market leader with iconic international branded products with sales growing at neck-breaking speed which still has huge expansion potential, then you won’t find a safer, easier business that ticks all your low-risk, lifestyle  boxes.

Built-In Higher Profit From Day One In The Business

Most Buyers will quickly realise, if the owner waits and sells the Business next financial year, the asking price will be substantially higher when calibrated against a substantially higher net profit.

Because of the low-risk features, this business offers!…

….It will sell fast! 

Register your interest now by clicking on the “enquire now” button at the top right-hand corner of the screen under my photo, and we will notify you when our 100 page, highly detailed report has been completed.

As the sale of this Business is highly confidential – Only registered Buyers will be given first preference for this outstanding Business.

THE HOLY GRAIL OF COVID19 – Arguably The Best South West Distribution Business For Sale

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