Listings } Tabak

SOLD 260515 Exclusive Distribution Agreement - Wellington - $300,000

Ref #: 260515. Established in 1988 this National brand is the most recognizable within their industry sector.

 Product Sale, Installation, Service; National Brand

The business has an exclusive distribution agreement for the greater Wellington region. They have a long established, well respected history in the region with some 10,000+ customer records. There are some 35 distribution territories within New Zealand. The distributor has production facilities in Auckland, Christchurch, Australia and China.

The business sells an essential product into the residential housing and industrial markets. They have a wide range of solutions to choose from. The distributor invests in continual research and development, advanced technology and precision engineering to ensure their product solution is one of the finest systems available. The majority of residential homes have one of these products. Over time the products need servicing and maintenance and ultimately replacement. This ensures an ongoing demand for business services.

The working owner is supported with three full time employees. He is involved in general business management, sales and quotes. This is a relatively simple business to understand.

Approximately 65% of customers are the direct end user with the remaining 35% being builders. The business has a relationship with a number of group housing companies. Residential customers pay 50% deposit which is great for cash flow. The business operates with approximately one months forward work scheduled.

The existing owner purchased in 2010 and has turned the business around producing year on year growth in sales and EBPITD performance. Previously the business was run under management with absent owners.

Sales are circa $900,000. Product servicing work accounts for some 20% of this total.

There is a genuine family health reason why this business is now being sold. The owner has therefore not been fully committed to the business over the past 18 months with large periods away from the day to day operation. Ideally the owner would have continued with the revival of this well recognised brand but  unfortunately this is now not possible. He is happy to assist with a suitable handover.

Net Surplus: $144,956 YE March 2015

Net Surplus: $60,145 YE March 2014

Contact: Brodie Wilson

Office: Wellington

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