TIME-PROVEN :: MANUFACTURE – WHOLESALE - DISTRIBUTION :: A 24-YEAR LEGACY

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NET PROFIT
$778,150 pa

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PRICE
$1,895,000

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STOCK
$265,000

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LOCATION
Perth Metro North-East

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REF NO
GN14170B

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BROKER
Graham Nankivell

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Under Offer

Under Offer
Manufacturing
  -  
GN14170B

Key Features

  • High gross profit margin of 51%
  • Vendor guaranteed sales
  • Essential products
  • Long established 24 years
  • Low full-time staff of just 3
  • Easy manufacturing assembly process – (1) cut, (2) screw, (3) assemble
  • Appointed wa distributor

TIME-PROVEN :: MANUFACTURE – WHOLESALE - DISTRIBUTION :: A 24-YEAR LEGACY

PRODUCT DIVERSIFICATION IS THE KEY

Essential Safety Products

Essential Security Products

Essential Cost-Saving Products

Owner's, Future Sales Guarantee…

MAKES THIS A BUSINESS LIKE NO OTHER

INVESTING IN CERTAINTY: A Business with Guaranteed Sales Targets

This investment offers unmatched security by ensuring that if the business does not achieve minimum sales targets equivalent to the sales generated in the 2023 financial accounts, the seller will compensate the buyer for the sales shortfall on terms and conditions outlined in our business marketing report. This isn't just a business purchase; it's an unparalleled guarantee for future success.

Given that year-to-date sales are currently racing 23% ahead of last year's results, the owner is confident that the need for a guaranteed payout will be unlikely. Instead, this guarantee is offered to bolster the buyer's confidence in the business's continued growth amidst current market conditions. 

In short - this is a proven business that doesn't just promise potential – It guarantees it!

This same owner, 24-year legacy business is safer than other businesses offered for sale, with a risk reduction promise that will be virtually unmatched by any other equivalent business offered for sale.

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Rare Low-Risk Key Features  – That Will Be Hard To Match

 

1… High Gross Profit Margin of 51% >>> Reflects Strong Niche Dominance.

2… Vendor Guaranteed Sales Agreement >>> Risk Reduction

3… Essential products >>> Product Flexibility All Market Conditions

4… Growing Repeat Order Client Base >>> Predictable Monthly Sales

5… Long Established 24 Years >>> Same Owner Has Reached Retirement Age

6… Low Full-Time Staff of Just 3 >>> Means NO Staff Hassles

7… Appointed WA Distributor >>> Long-Term Supply Contract

8… Low Competition >>> Protection Through High Barriers To Entry

9… Self-Propelled Sales Growth >>> Advertising Only $691 Per Year

10. Huge Potential To Double Existing Profit >>> Without High Capital Expenditure

11. Cashflow Positive – Upfront Deposits >>> Low Working Capital Requirement

12. Easy Manufacturing Assembly Process >>> (1) Cut, (2) Screw, (3) Assemble

 

In today’s business landscape, marked by evolving environmental challenges and security concerns, this business stands out, thriving under various economic conditions, manufacturing and distributing crucial products to address safety and energy-saving concerns of an extremely large demographic.

Picture a solution so integral that it redefines market norms, becoming essential in both businesses and end consumers. Over its 24-year establishment period, it has supplied thousands of products across an extremely wide demographic, offering robust protection from external threats and effectively cutting energy costs.

In vast regional areas of WA that are severely impacted by natural disasters, this company’s products shift to an essential shield, crucial for protecting individuals and assets. Furthermore, beyond its physical protective benefits, it also contributes to privacy enhancement, noise reduction, and environmental preservation by significantly reducing energy consumption.

This business boasts remarkable ease of management and a straightforward assembly manufacturing process. Most products are tailored to the customer’s requirements through a guided, step-by-step semi-production line. This process ensures rapid delivery to a wide and diverse customer base throughout WA.

A 24-YEAR LEGACY OF GROWTH

The same owners for 24 years directly prove this is a business you’ll also keep forever! The critical nature of its products consistently drives its sales growth. Not even the Global Financial Crisis, wars, changes in government, the COVID-19 pandemic, or Western Australia’s strict border closures put a dent in this business’s remarkable sales growth. Its resilience and upward growth trajectory are exactly what every buyer wants (and expects) and rarely gets. It is also why the owners confidently offer a minimum sales guarantee, expecting continued sales expansion.

START WITH A $200K ADVANTAGE! – Ready, Set, Grow

Boasting over $200,000 in confirmed forward orders, the new owner is poised for an immediate strong start. Added to this, the business’s current year-to-date sales growth is surging at 23% ahead of last year, placing the company on course to significantly outperform previous years’ results by a wide margin. It also means the owner’s sales guarantee is not just a promise but a testament to the business’s robust and reliable ongoing performance.

THE ESSENTIAL UNSEEN HERO

Sales are on an upward trajectory, securing a stronghold in its niche market, driven by the steady demand for security products across a broad customer demographic. The company’s extensive statewide customer base frequently places repeat-refill orders every month, making sales highly predictable.

However, beyond security, there’s a significant hum in the background, with its products focused on safety and the reduction of rising energy costs. These diverse business sectors are witnessing remarkable growth rates, propelled by increasing temperatures, El Niño effects, and a growing population. The products are so essential that they essentially market themselves, negating the need for a dedicated sales force or substantial advertising costs.

BUILT ON SOLID FOUNDATION:

The operation thrives despite only having three full-time staff and a few casuals.

Unlike other manufacturers and wholesalers, the business has fast collectable accounts – many of which are on a Cash on Delivery (COD) system that significantly boosts cash flow. Customers are generally required to pay a 30 percent deposit upfront, with the remaining balance due upon order fulfilment. This approach substantially improves cash flow and dramatically lowers the need for working capital, setting this business apart from many others in the manufacturing and wholesale sectors. Documented systems also streamline production, eliminating the need for specialised trades or prior industry experience.

THE STRENGTH OF DIVERSITY: Less Risk, More Reward

As the WA-nominated distributor, this business enjoys a secure position in the market, bolstered by a widespread and growing repeat client base. Remarkably, no single customer accounts for more than approximately 10% of the annual sales, illustrating a diverse and resilient revenue stream.

THE INVISIBLE HAND OF SUCCESS: Market Demand at Work

 

As previously mentioned, the vast majority of sales are self-propelled, highlighting an efficient, safe business model that significantly reduces the overhead of running a sales force. This independence from direct sales efforts underlines the intrinsic demand and market presence of the business’s highly sought-after products that many customers can’t do without.

The lean overhead operation is further evidenced by an exceptionally low advertising expenditure of only $691 to achieve sales exceeding $2.5 million in the 2023 financial year. A feature most business Buyers want but rarely get. This efficiency not only points to the business’s strong market demand but also hints at the potential for even faster growth with the implementation of a comprehensive marketing plan.

LOW COMPETITION:

Its high gross profit margins of 50% are exceptional, indicating that achieving such high margins suggests that competitors are no threat. Such high margins are typically only seen in businesses offering high-quality, essential products with minimal competition. With only two main competitors, this business emerges as a dominant force within its sector, presenting an unmatched opportunity for market expansion that the new owner can capitalise on.

FROM RETIREMENT TO REVIVAL: A Business Begging for Energy

Conservatively managed and after steering the business for the past 24 years, the current owners have for some time chosen to let the business coast rather than actively promoting its essential products to broader, untapped markets. This approach is mainly due to the owners reaching retirement age and prioritising lifestyle over financial gain. By implementing better management systems, modernising the existing website, and introducing products to various new markets, the new owner has the potential to significantly accelerate sales growth.

 AS IF IT COULDN’T GET ANY BETTER…

…This Has to Be The Ultimate Self-Funded Business Investment Of A Lifetime.

For example, considering a net profit of $778,150, a 10-year principal and interest loan pay-back term, an asking price of $2,160,000, and an interest rate of 9%, the Business has the potential to generate a cash surplus of $449,806 per annum.

Yes! – that’s right, this surplus remains intact even after accounting for full-price loan repayments. 

Closer examination reveals a compelling picture of this self-funded investment strategy. The Business not only consistently generates substantial annual cash surpluses from its net profit but also effectively finances its own purchase through servicing the full-price loan repayments from its net profit. Remarkably, with its continued trajectory of success, the Business’s goodwill accumulates, driven by potential profit growth, creating the potential for a higher selling price in the future.

Note: it is important to note that the above example does not reflect individual owners’ requirements, such as working capital, personal taxation payments, owners’ drawings, movement in interest rates, etc., and other personal expenses that may change the expected cash surplus. Accordingly, there is no representation, warranty, or any other assurance that any of the variables, approvals, assumptions, or forecasts mentioned above will be realised. As a result, we strongly recommend that each buyer contacts their accountant, legal advisor, and lending institution to satisfy themselves with the expected cash surplus return and the opportunity to qualify for the necessary loan approvals.

THIS NO ORDINARY BUSINESS: It simply Won’t Get Better Or Safer Than This

With unmatched sales guarantees, an operational model of simplicity, and an untapped market ready for expansion, this opportunity is one you don’t want to miss!

BE QUICK TO REGISTER YOUR INTEREST IN THIS ONE…

… Seize this unique investment opportunity; it will be hard, if not impossible, to find another low-risk business that will beat this outstanding opportunity!

Please note that the sale of this business is highly confidential, and therefore, the owner has explicitly requested that no phone information be shared until a confidentiality agreement has been signed.

 

Key Features

  • High gross profit margin of 51%
  • Vendor guaranteed sales
  • Essential products
  • Long established 24 years
  • Low full-time staff of just 3
  • Easy manufacturing assembly process – (1) cut, (2) screw, (3) assemble
  • Appointed wa distributor

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TIME-PROVEN :: MANUFACTURE – WHOLESALE – DISTRIBUTION :: A 24-YEAR LEGACY


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JUST SOLD

A snapshot of recent successful Business sales include:
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Register your interest now by clicking on the "Email Now!" link button, and I will let you know once our 120-page business report is finalised.

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