Internal Ref: CFSG2025-101
Summary
Well-established, Melbourne-based wholesale gift packaging supplier to buyers nationally. Stable customer and supplier relationships.
Revenue
$1,195,433 pa
Potential
The Business offers an acquirer two well-established and complimentary brands with loyal and diverse customer bases and supplier relationships. It would be ideally suited to either:
1. A stand-alone acquirer looking for a relatively simple business to run who is willing to invest in sales & marketing; or
2. An existing industry player that could synergistically incorporate the business into its existing customer network and infrastructure.
Skills
The business is relatively simple to operate with a suite of longstanding customer and supplier relationships. The business would suit someone with sales & marketing skills who is prepared to invest in business development and building up new customer relationships. The business would also suit someone with a graphic design background who could use those skills to offer customers bespoke packaging solutions.
Hours
Monday - Thursday: 8:00am - 4:30pm / Friday: 8:00am - 2:00pm.
Lease
The business leases premises from a related party. A new short or long-term commercial lease can be negotiated.
Employees
The business employes 4.6 FTE staff. This includes 3 staff primarily with warehouse duties. The owner & his wife are responsible for administration and both work at 0.8 loads.
Reason for Sale
After running the business for the last 20 years - and after several decades in the industry - the owner has decided that it is time to retire. Should a purchaser want him to, the owner has indicated he is prepared to remain on for a reasonable period to ensure a successful handover. However, his goal now is to go sailing!
About the Business
The business comprises two complimentary businesses that supply customers with packaging materials such as gift boxes, ribbon and wrapping paper. Both businesses were initially founded in the 1970s and are presently being offered for combined sale.
The owner has run the business for the last 20 years and has decided it is time to retire. However, he is prepared to remain with the business on a short-term basis as part of a comprehensive handover.
The first business is a wholesale supplier of gift packaging consumables to a wide variety of businesses such as bookshops, nurseries, hamper suppliers and more. The business has large and diversified range of individual customers with some 90% of sales completed online.
The second business supplies gift packaging products for resale to businesses such as book shops and news agents. This business relies on a network of sales agents with virtually all transactions completed online.
In total, the business maintains relationships with some 20 suppliers – both local and offshore, principally in Asia. These supplier relationships have been particularly stable since prior to COVID and are ‘low touch’ in terms of day-to-day ordering and general management.
The business employs three staff in the warehouse with the owner and his wife being responsible for general administration – including payroll, buying, maintaining major accounts and managing the website.
The business has invested in first-class IT systems that provide full visibility of and control over all aspects of the business. These systems also enable the business to seamlessly operate remotely.
Over the last 12 months, the owner has restructured the headcount to put the business on a more sustainable footing. This has positioned the business strongly for future growth. The owner has not invested in sales & marketing for several years, including gift fares, which used to be the key driver of revenue.
Going forward, effort in these areas should be well rewarded.
The business is a tremendous opportunity for someone looking to acquire a business that is relatively simple to run and that offers a compelling platform for future growth.
The business has strong existing customer and supplier relationships, which provide a strong foundation. A new owner committed to business development and product innovation could rapidly generate significant sales growth - both from existing customers and new accounts.
History
The business' two brands have both been in market since the 1970s and have developed strong name recognition in the industry. After many years working for a large industry player, the owner decided to step out on his own and acquired the first brand some 20 years ago. He purchased the second brand in 2018 to compliment the first, and he has been running them together for several years.
Connect with us