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Import Distribution

Business for Sale
Perth WA

BM5910V-A: Its Every Business Owners Dream... Over $500k in PASSIVE RENTAL INCOME


Import Distribution

Stock Included:
Stock Value:
Years Est:
Gross Revenue:

 It's Every Business Owners Dream....


...backed by...


...under-girded with...


VALUED IN EXCESS OF $1 MILLION (Over 75% of total business Value)



Making the Decision to buy this business is easy when you have the confidence that profit will continue to grow even in the worst economic condition. But don’t just take our word for it you be the judge!! – Just look at the profit growth over the past 4 accounting periods…

 NET PROFIT - 2009 = $327,900 (Financial Year)

 NET PROFIT - 2010 = $379,450 (Financial Year)

 NET PROFIT - 2011 = $384,355 (Financial Year)

 NET PROFIT - 2012 = $442,592 (Financial Year)

 NET PROFIT - 2013 = $448,575 (Financial Year)


::>>>  Proven recession proof

::>>>  Diversified client base

::>>> Exclusive agencies

::>>> Absolute proven monopoly in Western Australian for rental market

::>>> Contracted guaranteed income

::>>> High Asset Price Mix – Valued Over $1,000,000

::>>> Business to Business Transactions

::>>> Low staff

::>>> Genuine retirement sale

As will be soon evident, this business is a rock-solid capital equipment supplier, with an unsurpassed reputation built over some 18 years relating to the service and supply of income producing capital equipment.

This business operates as a 100% complete monopoly in regards to the rental of specific income producing capital equipment within the Western Australian market.

With significant barriers to entry, this rental fleet provides the business owners with a river of passive income flowing from rolling 12 month contracts for the ongoing rental of these machines.

RISK REDUCTION FEATURE #1 – Totally Diversified Risk

The business is indirectly diversified through its client base across all industries by virtue of the fact that the capital equipment is in use across all market sectors, meaning that the business is not impacted by a downturn in any one particular sector (e.g. mining).

RISK REDUCTION FEATURE #2 – Absolute Monopoly with Guaranteed Cash-flows

The business operates a fleet of almost 300 rental machines secured by long-term rolling 12 month contracts.

This rental fleet is currently producing an income in excess of $45,000 per month, meaning cash flow issues are a thing of the past for this business. The  fleet has reached a critical mass in that it can, and does, self-perpetuate.

With no competitors offering a rental option in Western Australia, the owner is doubtful that there is even any competitors offering a rental option in the whole of Australia.

Additionally, the rental income provides a consistent month-on-month guaranteed cash flow which smooths out any cash flow dips and troughs that plague other suppliers of capital equipment.

The owners of this business sleep easy at night knowing that even if they were to not sell another machine for the entire year (FY2013 sales = 55 machines sold to date) the business would continue to thrive and grow based on the rental income alone! 

The rental income pays all the bills, services any business debt, pays the rent, pays the wages, and still has a healthy buffer leftover for the owners. THAT MEANS THAT ANY FURTHER MACHINE SALES ARE TOTALLY “CREAM”!!

As a result the owners believe there is little financial risk in the business. This is proven by the continual growth of the business in periods of economic uncertainty (such as the GFC).

RISK REDUCTION FEATURE #3 – Massive Plant & Equipment Value

Further reinforcing its position, this business has a large bank of capital equipment either rented or available for sale (Depreciated Value over $700,000 – Market Value over $1.0m) which can be sold as income-producing assets in the open market for prices well above their depreciation values.

For an incoming owner, this means that more than 75% of the business value is high quality, income producing, plant and equipment which have an average working life of over 20 years or more.  This provides an immediate depreciation benefit for the owners to assist in their tax planning, as well as the comfort of knowing that there is a large bank of existing machines are available for sale if circumstances necessitate it.

But this isn’t just a business with exceptionally low risk; it combines this with considerable untapped growth potential – a rare mix not found in most businesses.

The owners of this business are selling for genuine retirement reasons.


 Sales: $918,867

 Net Profit: 448,575



 •    Historical ongoing growth -  no matter what the state of the economy

The business has continued to record increases in sales and gross profits from inception and on this basis the owner sees no reason why this trend will not continue, as sales are spread over an exceptionally wide range of industry.

 •    Widespread growing repeat client base

The business services a growing list of customers, with no one customer representing more than nine percent of annual sales. This has made the business less susceptible to downturns resulting from a loss of a major customer. This is a key feature not often found in businesses of this calibre.

 •    Long established – 18 years

The business has been servicing the Perth market since 1995. With very little sales or marketing effort turnover has continued to grow year on year, purely through reputation, website enquiries and word of mouth.

 •    No reliance on sales staff to generate sales

The vast majority of sales are simply self-propelled, which means that the current owners do not have the overhead of running a sales force. However it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly be increased if need be.

 •    Low competition

The competitors are long-established, so the company has always operated against the present level of competition. In these market conditions this business has been able to achieve a full order book and has staff working at, or close to, capacity so the presence of competitors has little effect on its turnover or profitability.

 •    Immediate potential to expand the business

Plans have been made to investigate the potential to sell a new range of machines and product has been sourced from China to evaluate the quality and market potential. The market is currently being evaluated and product has now been received for initial investigation. Good margins are seen in this product.

 •    Barriers to market entry

Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would need to be able to funds its operations for a number of years while it built a rental roll; possibly an insurmountable barrier given that this business holds this part of the market.

 •    Low advertising

The business is in the fortunate position it does not have any significant reliance on advertising to generate sales. Advertising is presently restricted to a small advertisement in the Yellow Pages which produces a couple of enquiries a month, and the occasional mail-out.  The majority of business is derived from the website, recommendation and the business’s name on the large number of machines in the market.

 •    Simple to operate – no experience necessary

The current owners had no industry experience prior to purchasing the business, and have gradually taken on staff as it has grown. Each new member of staff has been trained to be competent in their roles, thus reducing the reliance of the business on the owners alone.

 •    Owners can take holidays

The current owners have taken annual holidays of up to five continuous weeks, with additional days often taken to make long weekends.

 •    Low trading hours

The business generally only operates from Monday to Friday. There are some requests from potential clients to view machines on a Saturday, though this is the exception rather than the rule.

 •    Current year to date sales are up

More rentals and sales as the company continues with its current growth rate.

 •    Long term historical growth

This business's growth has been based on the fact that it can provide rental machines, excellent service and a wide range of industry clients. This means its growth hasn’t been dependent on external factors over which it has no control, such as economic cycles.

 •    Minor overheads

Given the size of the annual turnover, overheads are relatively small.

 •    Long established repeat client base and supplier list

Not reliant on agencies or a few large clients, thus offering excellent stability.

 •    Profits can be proven

The business has a complete set of verified accounts which clearly show its profitability.

 •    High asset mix in purchase price

A high percentage of the purchase price is made up of tangible stock and equipment. Compared to low asset businesses, this business reflects a lower risk and potentially delivers a higher bottom line profit through being able to minimise tax by claiming depreciation as a non cash expenditure item on its long life equipment.


Proportional breakdown of the purchase price includes $709,000 in plant and equipment value that has the potential for the buyer to claim back via depreciation as a tax deduction.

 Plus, check out the  large CASH SURPLUS after full price funding by clicking on our loan calculator,  enter you parameters and presto – You’ll see just how much surplus money can be  made form this business.



 (Approximate target date = 18th September, 2013)

 If you wish to be notified when the report is completed, please register your  interest by clicking "email me" under my picture (top right hand of  this screen. I will advise you via email once our 80 page business report has  been finalised giving you and other registered buyers a 7 day lead time prior  to the business being advertised.


 Register your interest by clicking the “email me” link below my photo to avoid disappointment.

 Email Me now and to arrange a meeting to receive your 80 page comprehensive business profile.


Blair Macdonald

Phone: (08) 9429 8882

Mobile: 0433 149 144


Important: Recent analysis of our business sales reflected over 75% of businesses sold were from buyers who registered interest against the business which eliminated the need to advertise the business for sale in local newspapers.   
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