JE6496C - 5 DAY ROBOTIC MANUFACTURING
Stock Included: —
Stock Value: —
Years Est: —
Gross Revenue: —
BEST OF THE BEST
5 DAY ROBOTIC MANUFACTURING
There's no sales staff, yet the ORDERS JUST KEEP ROLLING IN...
ITS ALMOST LIKE PRINTING MONEY!!
!! = PLUS = !!!
This is a BUSINESS TO BUSINESS OPERATION...
with BLUE RIBBON CLIENTS who need
THE REPEAT ORDER PRODUCTS manufactured by this business.
There's NOT A CENT TO SPEND,
with THE HIGH QUALITY, LONG LASTING PLANT & EQUIPMENT
WORTH OVER $740,000KEY FEATURES::>>
1: Repeat Order, High Volume, machine driven manufacturing = low staff = low headaches;
2: Streamlined 5-day-per-week business, with 4pm finishes and weekends off;
3: Essential packaging based industry;
the Business has LOW RISK DNA…
…BUT DON’T TAKE OUR WORD FOR IT
You’ll find it hard to match this feature in any other business…
Unlike most wholesale businesses, Plant and Equipment represents OVER 50%
of the purchase Price, thereby not only reducing risk, but also
delivering a higher after tax net profit through equipment depreciation
IT SIMPLY DOES NOT GET BETTER THAN THIS:
• Low stock – Only 20,000
• No employed sales force
• No marketing plan
• Low staff of just 6
• Fun and easy to manage
• Established 23 years – it’s a true success story
• Mostly a 5 day week business.
• Highly systemised – easy to learn and manage
• Automated quoting makes it all too easy
• State-of-the-art Plant & Equipment forms 53% of purchase price and provides a unique competitive advantage
• Exceptional customer retention features and self-propelled sales
||$867,697 = 83% GP! (FY2014)
||$1,350,000 inc Stock
TAKE A MORE DETAILED LOOK:
• High Gross Profit margin
Self-propelled sales and a high gross profit margin of 60 percent indicate a stable yet growing business.
• Essential products and services
Virtually any product, at some point in the distribution chain, requires this businesses product.
• Low risk – key customer retention features
SECURITY customer retention feature – Each customer pays for a machine
tooling setup cost for each product which is held by the business.
Tooling possession by this business means that it is more cost effective
for the client to reuse the existing tooling rather than go elsewhere
and pay these costs again.
• Preferred supplier status
business is in the enviable position of being a preferred supplier to
several major customers. This means several of these customers may quote
on the same project and regardless of who wins; the business is in pole
position to win the work.
• Blue Chip Customers
total client base numbers approximately 250+ card customers with many
corporate names reading like the who’s who of industry. In fact its
largest customer has been trading with the business for the past 22
• Long established
Because of the major
partner’s age the business has been managed on a conservative basis,
allowing the new owner many potential areas to further expand the
business. Evidence of this is that it has historically reflected a
stable turnover with no marketing plan, sales force or large advertising
• Only six full-time staff
The industry being as large as it is, there has never been a problem to source new staff when required.
• No reliance on sales staff to generate sales
vast majority of sales are simply self-propelled which means that the
current owner does 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
• High level of client loyalty
A high level of
client loyalty has been maintained throughout the history of this
business. A large number of major clients started with the business at
conception 23 years ago.
• Barriers To Entry
setup costs in plant and equipment and time to establish a large
customer base to match this business would prohibit most businesses from
attempting to enter the market at a profitable level. Evidence of this,
is the lack of new competitors that have entered the market over the
past decade and failure of recent competition that has tried.
• Excellent location
close to the CBD and virtually on the doorstep of all major customers.
Convenient location with a train station at the end of street, and with
good road links servicing all of the metropolitan area.
• Immediate potential to expand the business
The vendors’ investment in new equipment has the capacity to develop into a stand-alone business if desired.
• Low advertising
The business is in the fortunate position it does not have any reliance on advertising to generate sales.
• Simple to operate – no experience necessary
current owners had no industry experience prior to purchasing the
business. As a result the new owner will not need any technical
experience as it already exists within the staff employed. They need
only perform minimal administrative duties; existing staff carry out the
day-to-day running of the business.
• Owner can take holidays
With remote access to systems if required.
• Low trading hours
business generally only operates from Monday to Friday, 38 hours a
week, unless weekend overtime is required in which case staff are
generally able to work unsupervised
• Could be run under management
current owner oversees production and management. Therefore he does not
have to work significantly long hours, making the business easy to
operate and ideally suited to the employment of a General Manger if
• Long term historical growth
The business’s growth has been entirely based on performance – the better service it provides the more work it wins.
• Minor overheads
Given the size of its annual turnover, overheads at the business are relatively small.
• Long established repeat client base and supplier list
Not reliant on agencies or a few large clients, thus offering excellent stability.
• Newly captured customer is likely to boost future revenues
new customer has not traded for the full 2012/13 year. Ongoing repeat
orders from this source are expected to have gross sales of $30,000 to
$40,000 per annum. This client is a major supplier within their
industry and this client has made it clear they expect the business to
work in conjunction with them to service their clients’ requirements on a
long term basis. A recent purchase of a capital item has been made to
service this client.
• Low stock holding - $20,000
amount of stock is considered minimal and could be reduced further with
more frequent ordering. Most orders are placed once a month with
suppliers for convenience.
• Profits can be proven
The business has a complete set of verified accounts which clearly show its profitability.
• High asset mix in purchase price
previously mentioned, a high percentage of the purchase price of the
business is made up of tangible equipment. Compared to low asset
businesses, the business therefore reflects a lower risk and potentially
delivers a higher bottom line profit through being able to minimise its
tax through claiming depreciation as a non-cash expenditure item on its
long life equipment and thus deliver a higher after tax profit.
• High level of client loyalty
strong loyalty of the business’s customers is proven by the fact the
majority of its major clients have been with the business for decades.
The business’s systems, procedures and equipment have historically
fortified its net profit percentage.
• High net profit
Niche manufacturing, generating a rising net profit percentage from 35% to 43%
• Unrivalled reputation as the market leader
Established 23 years.
• Highly systemised
Automated quoting system - easy to learn and manage.
Anyone who has been looking for a great business will know, a low risk high potential for growth business is a rarity. This will NOT be on the market long!
business profile on this business is complete, so contact me by
clicking the “email me” link below my photo to avoid disappointment.
NOTE: This business prospectus is now completed for this business. We
invite you to send an email to register interest against this business
and reserve your copy of the business report.
Email Me now to organise a time to pick up a report on this excellent business.
Phone: (08) 9429 8882
Mobile: 0433 149 144
Broker/Agent ID Number: