About the Business

Business ID: XB159773

Perfect for volume aggregation by major competitors

Based on the Central Coast, this business supplies the local market, Sydney and Newcastle. Products are purchased in bulk (mainly) from overseas via agents to maximise discounts and take advantage of where the AUD has the most value against the local currency.

In recent years, the business has focused less on volume and more on higher margin opportunities to obtain maximum income for the minimum work in order to minimise workforce numbers and allow all staff to maintain a good work/life balance.

The current owners have invested heavily in bending, shearing, lifting and welding equipment to ensure the business has the capability of producing products in quantity and with short notice.

There is ample factory capacity to grow the business beyond its current turnover of around $6.7M per annum.

- Established over 40 years

- Current ownership 15 years

- 13-14 Employees (trades qualifications not required)

- Supply to local builders, national construction companies, infrastructure builders, and individual homes

- Gross Margin 37%

- Adjusted Profit 13%

The vendors will include a handover period of up to one month to assist in the transition to new ownership.

This business employs tried and tested methods for business development, and an expansion is possible via Social Media and additional on-the-ground sales resources.

The factory is very spacious and optimally set out for efficient working. The current plant is underutilised and there is genuine scope for a significant increase in factory output if a new owner wishes to chase higher sales volumes.

The factory allows entry and exit via B-double-sized trucks with no requirement for manoeuvring.

The business is located in close proximity to the M1 Motorway. It may be an ideal acquisition for competitors based in Sydney or Newcastle (or both) looking to increase market share and reduce transport costs to the Central Coast.

Asking Price: The Goodwill and Assets of the business are for sale for $2.8M plus SAV. SAV can vary significantly as steel is bought in lots up to 200 tonnes in size. At the time of writing, the SAV value was $480,000, which is a comfortable level for the business to operate with.