Stock Included: —
Stock Value: —
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Every Business Owners Dream....
PASSIVE RENTAL INCOME
PRODUCING PLANT AND EQUIPMENT
IN EXCESS OF $1 MILLION (Over 75% of total business
business is SO GOOD YOUR ACCOUNTANT WILL WANT IT!
!! PROVEN RECESSION
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)
::>>> Exclusive agencies
::>>> Absolute proven monopoly in Western Australian for
::>>> 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
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
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
Net Profit: 448,575
:::>> KEY FEATURES OVER OTHER BUSINESSES
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
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.
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
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
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
• Long term
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
• Long established
repeat client base and supplier list
Not reliant on agencies or a few large clients, thus offering
• Profits can be
The business has a complete set of verified accounts which clearly
show its profitability.
• High asset mix in
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.
TO TOP THAT ALL OFF!...
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.
THIS IS A NEW BUSINESS
LISTING - BUSINESS REPORT NEARING FINALISATION.
(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.
Me now and to arrange a meeting to receive your 80 page
comprehensive business profile.
Phone: (08) 9429 8882
Mobile: 0433 149 144
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.