- Categories: Automotive, Industrial/Manufacturing
The secular trend toward automation will continue to accelerate
The product offers industry leading product breadth
Proven innovation and reliability, coupled with best-in-class customer service will help drive growth
Increasing the number of corporate customers through developments and expansions happening in their designated territory
Expected future growth opportunities driven by positive macro-economic factors, infrastructure investment, strong mining sector and continuing low interest rates
An owner-operator seeking a tried and tested business with strong growth opportunities
Financial investors seeking an exceptionally well-run business with a strong growth trajectory
Bolt on strategic acquisition with synergistic opportunities
Interstate players seeking access to the rapidly growing QLD market
The vendors are able to assist with both training and the transition of the business to the new owners
7.30am 5.00pm Mon to Thur
7.30am 3.00pm Fri
Closed - Sat & Sun
Base Rent: $3,100 pcm ex GST
Outgoings: Rates payable six monthly
Term: Month to month since April 2021
The current owners, plus a field technician.
The business is currently advertising for a second field technician to cover North Qld.
Reason for Sale
The founding owners are looking to transition to retirement
About the Business
The global manufacturing business has a worldwide network of subsidiaries, dealers and distributors located in over 40 countries, including Australia.
The business which is for sale is a family owned distributor based in Rockhampton, servicing Central, Northern and Western Queensland. They service part of their territory by using sub agents and have parts and service agreements in place with businesses in the surrounding areas.
The current Distributor Agreement which was entered into in June 2021 for an initial term of 3 years, has renewal terms of another 3 years. The agreement stipulates an annual sales target which has always been comfortably exceeded.
In FY21, annual revenue was $1.7m+, and the business has a budgeted FY22 revenue target of $2m+.
The products and systems the business sells optimise truck and machine performance and are used all over the world, in a wide range of industries. This distributor mainly operates in the following segments:
1. Transport and Logistics
2. Port equipment
3. Earthmoving and construction
The business enjoys a trusted reputation and an established customer list. It is not overly reliant on any individual customer and has a low level of customer concentration risk.
It is a business with a diversified customer base spread across multiple industry sectors. Their largest client generated less than 7% of total revenue and their top 10 customers generated ~33% of total revenue.
The business have an edge on their competitors by having products available to them to cover both entry and premium level systems that meet all customer budgets.
The purchase price of $2m includes ~$250k of plant and equipment.
The current owners have been successfully running the business since 2004.