Business ID: XB------
Annual Revenues Consistently $5M+, Outstanding income to owner
Established over 15 years ago with long-term workshop staff in place, this business produces metal fabrications for regular clients located in Newcastle, the Hunter Valley and along the eastern seaboard of Australia.
Operating from purpose-built 1000 sqm premises in close proximity to the majority of its clients, this business has a reputation for the highest quality work while maintaining price competitiveness in the market.
The owner has recently secured the employment of another outstanding individual to complement the excellent fabrication skills possessed by the team of permanent employees.
This person is currently undertaking part of the owner’s original role in the business by using the in-house software to provide responses to the many RFQs the business receives from its established clientele. In addition, he liaises with suppliers to obtain the materials required for each job at prices that ensure the excellent profit margins are maintained. He also has fabrication skills at par with the workshop manager, who is himself extremely skilled. His fabrication knowledge is used to communicate any ‘non-standard’ requirements for a job through to the workshop manager. His experience in previous management roles would allow him to run the business on behalf of an investor if the buyer did not want to work in the business on a day-to-day basis.
The vendor has chosen to reduce the asking price of the business from $2.2m to $1.95m to make this fantastic opportunity open to as wide a number of buyers as possible. In exchange, a paid handover of up to 3 months is required, with a proportion of this to be by way of on-site support and some by telephone support; the amount of on-site support will reduce from 4-3-2 days per week over 3 months. The vendor’s belief is that the buyer will realise that the amount of on-site support can quickly be reduced, and he is open to cutting this short if that suits a buyer. Ongoing consulting service will be available subject to the vendor’s availability.
The business does not, and never has, advertised for work, with all work coming from repeat clients or from recommendations. The business has no dependence on any one client, and the Top 10 customer list changes from year-to-year dependent upon the projects undertaken by the diverse customer base each year.
- Blue Chip Clientele
- Fully equipped and fitted 1000 sqm factory/office
- 4000 sqm site, ample room for storage, parking and expansion
- Many long-term and highly skilled staff in place
- Strong order book still in place
- Opportunity to purchase premises at market value after 3 years of occupation.
- Low energy costs with 25Kw solar fitted with Tesla battery backup.
- High ceiling factory with access via high lift roller doors
- Spotlessly maintained workplace
- High focus on workplace safety
- Long-term lease available on a 3-year term followed by up to 4 x 3-year options.
Terms of settlement: The owner has priced the business very attractively to stimulate a quick sale and full payment is anticipated at settlement.
This is one of the very best fabrication businesses in the region. It has NEVER had a need to advertise for work.
With a very experienced factory manager in place (13 years), an employee capable of undertaking a GM role in the business and an experienced workforce and a large back catalogue of designs and fabrications in place, the business now almost runs itself. The owner currently chooses to maintain financial control.
Custom software (Excel-based) is used to produce responses to the many RFQs received each week. The software allows margin adjustment per job to ensure the required profitability and competitiveness are maintained. The software adds in all production costs and business on-costs.
The buyer of the business can choose to retain financial control over the business or appoint the employee as the GM and have an even lower level of day-to-day involvement with the business.
The vendor is committed to providing up to a 3-month handover on an hourly rate commensurate with his experience.
Asking Price: $1,950,000 plus stock (approx $20,000). The price is non-negotiable, and with the business having had ZERO warranty claims in 15 years of operation, there is no expectation that anything other than a very small, short-term retention will be requested. Any retention requested will purely be to ensure that an adequate handover has been made to the expectations agreed before contract exchange.
Property Code: 4684
