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Education - Corporate - Gov. Wholesaler

Business for Sale
Perth WA

IMMERSED IN AUTOMATIC GROWTH EDUCATION – HEALTH – CORPORATE PROFIT – Has No Chance To Exhale! IMPORTER & WHOLESALER… …OF COMPULSORY PRODUCTS EASY - Repeat Order - Pick >> Pack & Go >> Refill Order

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EDUCATION - CORPORATE - GOV. WHOLESALER

Stock Included:
Stock Value:
Years Est:
Gross Revenue:
IMMERSED IN AUTOMATIC GROWTH

EDUCATION
– HEALTH – CORPORATE

PROFIT – Has No Chance To Exhale!

IMPORTER & WHOLESALER
…OF COMPULSORY PRODUCTS

EASY - Repeat Order - Pick >> Pack & Go >> Refill Order System

FORTIFIED PROFIT VIA - 3 ROBUST INCOME STREAMS


1. Government Endorsed Wholesaler

2. Essential Corporate Products Wholesaler

3. CA$H And Carry Showroom



When you buy this business you will be joining the ranks of a few elite number of business owners who wholesale what most people would believe to be one of the most required mandatory, compulsory, consumer products in the country.

It’s also probably no exaggeration to say that every Business Buyer dreams of owning a company in which demand for the products they’re distributing is virtually open-ended and automatically on the increase
without any aggressive marketing. In fact, the year-end financial
accounts report an extremely low advertising expense of only $4,000 to
generate over $2 Million in sales WITHOUT any dedicated sales force or
aggressive marketing plan.

Try and find another business that can match these low risk/lifestyle key features?...

Compulsory Products – Clients have No Choice But To Buy!

NO Tendering - sales are simply self-propelled

Massive 63% Gross Profit Margin

• A sustainable mix of Government and private sector clients

• Government Endorsed Supply Approvals In Place

• Established For Over Two Decades

• Australia wide growth capabilities already identified

• No One Customer Represents A Large % Of Sales

• 30 Hour Week For Owner

• Owner - 11 Weeks Holiday Per Annum

• Management Team In Place

• Documented Systems

• No Reliance On Agencies

• Only Five Full-Time Employees

• Right For Expansion

• Loves Recessions -
look at the sales and profit analysis below

Five Day Week Trading

• Systematic Ease Of handling high-flow orders

• No Industry Experience Required

• Tax Deductable Overseas Travel

• Non-Stop, Repeat Orders From Blue Customers

• Growing CASH Sales

• Five Day Week Trading

• No Bad Debts

• Modern North Of River Premises


SALES AND PROFIT SNAPSHOT


There’s no doubt, it will be another decade before you see another business as good as this. But don’t just take our word for it – just look at the last 3 years sales and profit stampede...

SALES ANALYSIS…
2012 - SALES = $1,677,258
2013 SALES = $1,712,569
2014 – SALES = $2,178,720 >>> = 29% Increase From 2012

GROSS PROFIT ANALYSIS…
2012 – GP = $872,807
2013 – GP = $985,895
2014 – GP = $1,374,673 >>>>>>> = 57% Increase From 2012

NET PROFIT ANALYSIS…
2012 – NET PROFIT = $405,753
2013 – NET PROFIT = $530,023
2014 – NET PROFIT = $803,554 >>> = 98% Increase From 2012

Onward – upward sales and profit increases over the past three years have been a direct result of the owner streamlining and documenting business systems together with introducing new products with higher margins.
There are also many other factors that have increased and strengthened
its financial performance which will be fully explained in our detailed 120 page business profile.

In
any event, we’re sure you will agree, the above sales and profit growth
is nothing less than astounding! – Particularly given the poor economic
conditions over the past three years. But then again, this is what makes this business so special.

Having
a business that can perform so strongly in an economic downturn makes
you wonder just how fast sales and profits will further grow in the
current improving economy.


A BUSINESS WHERE CUSTOMERS ARE LOCKED IN


Besides the fact that many customers have written supply agreements, this
business also retains critical information on previous orders,
suppliers and product data that any new competitor will not have access
to. In other words it simply makes moving to another competitor costly
and expensive.

Having all the product approvals in place
(with no need to tender ) from its GOVERNMENT AND PRIVATE CLIENT LIST
this business has been able to historically deliver product orders
consistently both in terms of timing and quality which creates a
significant incentive for repeat custom and provides the business with a
stable secure client base.

A strong influence on retention decisions is the fact that a number of larger customers have signed supply agreements with this business confirming future purchases.


COMPULSORY ESSENTIAL PRODUCTS DISTRIBUTION


To provide essential self-propelled products where clients have no choice but to buy, is a sure fire recipe for success.

The sale and purchase of this business’s products within this automatic growth business sector is a multi-million dollar market in Australia – one in which it is well worth having a share of.


GOVERNMENT ENDORSED SUPPLY APPROVALS IN PLACE


You’ll also sleep easy knowing this business is positioned as one of the top five suppliers of these mandatory products in WA to both GOVERNMENT DEPARTMENTS and the private sector which repeat orders ARE NOT
driven by tender. Because it’s capable of supplying such a wide range
of products, the business is easily adaptable and can adjust its output
to suit the demands of its automatic increasing customer base. This is a
business which has experienced continued growth (click on the
graph top left) over the past two decades since it was established,
having outgrown its premises three times in that period.

More importantly, this provides an excellent barrier for any new competitors who may try to enter the market.


MASSIVE 63% GROSS PROFIT MARGIN


Most buyers and accountants understand the level of the gross profit margin in any business, is the key to making money safer and faster than businesses showing lower margins.

Firstly - high gross profit margins (as reflected in this business) usually signal low competition where re-orders are NOT price driven.

Secondly –
there would be few, if any, buyers who would want to buy a business
that generated high volume sales with small margins when they could
purchase a business such as this, reflecting a massive 63% gross profit margin.


NOT RELIANT ON AGENCIES


Unlike most other wholesale businesses who
have reliance on their continual supply of products from the agencies
they represent, this business lowers risk by having their products
manufactured to their specification and more importantly with their
personalised registered name branding on the finished pre-packaged products.

This means risk is greatly reduced
as this business can easily deploy a new manufacturer from many
available to produce its products under its own branding and
specification if there is a problem.

Through its established rock solid supply relationships
with overseas manufacturers, the business has a clear competitive
advantage (both in terms of price and quality) over many local
manufacturers and suppliers. The business has also identified a number
of other products from its overseas suppliers, which can easily be
sourced and incorporated into the existing range, thus adding potential to increase sales with minimal outlay and effort.

Once again, there would be few if any other wholesalers that could match this major low risk key feature.


ESTABLISHED FOR OVER TWO DECADES


Built on a solid foundation, this business has survived many major economic downturns; such as the introduction to the GST and even the GFC.


But it’s not every business which offers both enormous growth potential and the kind of stability which will see it weather good times and bad, providing its owners with peace of mind
and profits. This is a business which has experienced continued growth
(click on the graph top left) over the past two decades since it was
established, having outgrown its premises three times in that period.


Indeed, THERE’S NOTHING QUITE LIKE purchasing a business where sales are compulsory and therefore fortified.


NO ONE CUSTOMER REPRESENTING A LARGE % OF SALES


This Business has an extensive customer list with no one customer recording a large percentage of the annual sales.
This has been a deliberate policy designed to render the business less
susceptible to business downturns arising from the loss of large
clients.

Because of its long period of establishment (21 years) the business is in the fortunate position to have built up a large number of Government and private clients who in turn refer this business’s products to many thousands of customers.


LOW INPUT FROM THE OWNER


The
current owner HAD NO technical knowledge of the industry, so the role
of the working owner involves only administrative, financial and
oversight duties.

These tasks currently occupy approximately 30 hours per week.
It
is expected the new owner will have administrative experience, but need
not have industry knowledge as all the staff are in place and most are
cross-trained in one another’s duties. The business is being sold on the
basis that the new owner will manage the business in conjunction with
the divisional managers and existing staff.

Besides the owner’s low average hours 30 hours per week, he is able to take time-out from the business to visit suppliers and take many holidays throughout the year.

The
staff look after the business when the owner is on holidays or
overseas so it would be easy to employ a full-time manager to replace
the owner if the new buyer did not want an active role in the business.


ONLY FIVE FULL-TIME EMPLOYEES


Something everybody wants, but rarely gets in a business


This business is in the fortunate position that it employs a relatively small number of full time employees which currently numbers only five.
A number of casual staff are also available to support the existing
staff in the warehouse to package stock in high turnover months.

Most of the work relates to order processing, which is easily learnt by anyone. In most cases the staff are cross trained and can cover other workers in times of high activity.


FIVE DAY WEEK TRADING


With
the retail market sector moving to 7 day week trading the demand for
wholesaling businesses is outstripping supply. After all, why would anybody want to work seven days a week when they can work five days to generate the same profit.


SYSTEMATIC EASE OF OPERATION with NO industry experience required


The
business is extremely easy to learn for someone without any previous
industry knowledge. This is evidenced by the fact the current owners,
like the previous owners, had no prior industry experience prior to
buying the business. The purchaser only needs to provide good management
to support this generally efficient, smooth running business.

The Current owner has implemented a well-documented system that allows him to only work an average 30 hour week. This
enables staff to undertake most their duties via a documented process
which minimises the need to ask instructions from the production manager.

As previously mentioned the production manager handles most of the day-to-day operations
and even fully manages the business in the owner’s absence or extended
holiday periods. He would be keen to remain in that role after the sale,
allowing a new owner to opt to undertake an administrative role like
the current owner, or consider restructuring the business to have a more
hands-off role.


TAX DEDUCTABLE OVERSEAS TRAVEL mixing business with pleasure


For
buyers who like to travel this business provides the added advantage of
claiming tax deductible travel on one week business trips to suppliers.

Once again, most other businesses cannot offer this rare feature.


HIGH VOLUME REPEAT ORDERS


Products have a short term life and must be continually replaced.

As previously mentioned products wholesaled by this business are compulsory and mandatory
and are sold on the basis the end user has no option but to buy. Once
again, try and find this rare risk lowering feature in any other
business.

The large base of regular clients communicates flow on orders, via telephone, fax and email and there is no barrier to servicing customers in the remotest areas. For this reason, it is able to continue to expand its client base with minimal efforts expended by the owners.


LARGE COMPONENT OF COD SALES


It is rare for wholesale to have COD cash sales


The
key benefit for the purchaser buying this business is he will need a
lower level of working capital than other wholesalers. Furthermore,
analysis of the cash component generated mostly through showroom sales is continuing to grow.


BEST IS YET TO COME!


News released through a credible Government Department and the media
has
confirmed this business sector will have a substantial surge in end
user customers for the 2014/15 financial year. On this basis, it would
be reasonable for the buyer to expect profitability will be
substantially higher than the reported 2013/14 year.

This expected profit increase
will make your decision to buy this business easy and without delay,
considering other businesses will not be able to offer you this
potentially higher profit key feature without an increase in the
purchase price.


THE BUYERS UNFAIR ADVANTAGE…


…Furthermore, given the purchase price of this business has been based on the 2013/14 year’s profit, your return on investment will likely accelerate
making this business unparalleled with all others. Even better, the
extra potential boost in profitability could pay off the purchase price
faster or go toward placing the business under full management with the
owner not having to attend to the day-to-day operations etc.


THE FUTURE - LOOKS SET TO EXPAND!


Based on a simple - import – repackaged – distribution model,

the business has the capability to increase sales by importing other
products which will enable it to service even a larger share of the
market.

But what should virtually guarantee you that this
business will remain a profit powerhouse into the foreseeable future is
the state’s population growth which is self-propelling the expansion of
its core target market. Evidence of this is the owner has recently been
advised that a number of new major customers will commence
trading with this business early in this financial year. An influx of
new customers has the potential to further increase profitability which
the buyer is not paying for in the purchase price.


WHY WOULD ANYONE SELL A BUSINESS AS GOOD AS THIS?


As previously mentioned the current owner has reached a retirement age and also has serious health problems. For these reasons he has managed the business on a conservative basis
which provides a great potential to increase profits by simply
introducing new products mentioned above as well as implementing a
marketing plan to secure new customers.

For a new owner who has
the focus and energy, this business can easily realise the returns from
several potential areas of expansion, which the present owner has not
done due to his past health problems.


NO BETTER LOW RISK BUSINESS


With a 21 year history
of supplying Western Australia Government linked customers,
this business is solidly positioned as one of the market’s leading
wholesalers. This is borne out by the fact, the business has established
long term relationships with a vast number of repeat order customers, which has resulted in a significant level of trust and goodwill being created.

























Sales: $2,178,720
Gross Profit: $1,374,673
Net Profit $803,554.00
Price: $2,075,000 PLUS STOCK OF $600,000
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