Rapid Growth Multimedia Computer Sales & Service For Sale

Business description

This business is an outstanding multimedia sales and service business. The business has only been trading for five years. Growth has been solid & consistent and the business has developed an enviable reputation for outstanding service, innovation and product quality.

The business sells a wide range of multimedia computer components and systems. It also provides computer repair services and network installations to both its commercial and domestic customers.

Some salient points relating to this business are:

? Sales growth of 28% in 2006 and over 40% in the latest year
? EBITDA of $246,000 projected for 2007
? Strong cash flow
? Excellent brand awareness within industry
? 5 and a half day work week
? Excellent growth potential
? Plant & Equipment value of over $15,000 included in asking price
? Projected ROI 45%+


The business also comes with an attractive lease. And it is anticipated that the highly qualified and experienced staff would be willing to remain with the business.

This sale represents an outstanding investment opportunity in a business with a solid growth history and strong cash flow.

Included in this offer are the following:
? 100% of the business assets
? A business with a well established and broad customer base and one that provides a consistent strong cash flow;
? A well-established and well recognised trading name with a reputation for quality and outstanding service;
? Existing stable and well qualified staff;
? Modern and spacious premises
? Excess capacity provided by the current premises that will support substantial business growth;
? Premises that are strategically located on a very high traffic arterial in one of Melbourne’s outer eastern suburbs;
? Excellent customer parking directly in front of the premises;
? 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.

For personal reasons, the vendor has now decided to focus his time and energy on other matters, and as no succession plan is in place, this outstanding business is now being offered for sale. A very realistic asking price has been set to effect a quick sale.

This investment opportunity would ideally suit an individual or partners with management skills and an understanding of computer operational systems. Under the right management, this business could be driven to the next level of growth and efficiency.

Alternately, this investment opportunity would suit an established business looking to expand or diversify its operations and substantially increase cash flow.

Operations

The current hours of operation of the business are generally:

Monday to Friday 9am – 5:30pm
Saturday: 10am – 2pm


The majority of work comes from computer system and component sales, both to commercial and domestic customers. Income is derived from the following:

? 18% from outcall service work
? 25 % from in-shop service
? 57% from component and system sales

Over the last three years, a customer database has been built up; however, this has not been utilized for marketing purposes.

Market / Customer

The majority of service work retail sales is sourced from local commercial customers and from residents living in the surrounding area. The secondary market is comprised of commercial clients wanting to improve the performance of their multimedia computer systems.

Over the last three years, a client database has been built up; however, this has not been utilized for marketing purposes. Access to the database will be made available during due diligence.

Services

The business currently provides a range of services, from general computer repairs through to multimedia computer system performance enhancements and network installations.

Some of the services provided include;


Products for sale

Some of the products offered for sale include:

? New Computer Systems.
? Custom made computer systems
? Networking
? Multimedia Systems.
? Multimedia Computer Components including:


Premises:

The business is strategically located in the central shopping area on a very high traffic arterial. Excellent exposure to passing foot and vehicle traffic is provided.

The current lease on the premises including GST is $2,500 pm + outgoings. A five year lease with two five year options is available.

The premises include a spacious and bright product display area and a rear service and storage area. A small staff eating area and toilet is also included.


Plant & Equipment:

Plant & Equipment value of $15,000 included in asking price.

Management / Staff:

The current owner manages the business, provides the strategic direction and provides much of the commercial service and network installations.

The business currently employs 1 full time sales and service technician and 1 part time technician.

Transition

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

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

Growth could be driven by initiating press and perhaps radio marketing and by utilizing the existing database for marketing purposes.