Manufacturing business in growth mode

Plant investment creates opportunity for growth

  • Asking price: $3,490,588
  • Listed: Fri 6 Oct, 4:12 pm
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Listing #: 1435320335
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Location: Auckland City, Auckland
The owner of this business has invested heavily in quality plant and machinery, thereby setting it up for future growth.

We previously sold a business in this sector that had almost doubled its turnover in four years, as a result of similar levels of investment.

Capital expenditure is expected to be minimal for at least the next 3-4 years.

Business strengths
- In business for nearly 20 years
- High end, quality product in strong demand
- Solid revenue growth and financial performance
- Good reputation and levels of repeat business
- Strong pipeline of forward orders
- Broad client base (top two clients in 2016/17 made up 10% and 4% of sales)
- Highly systemised production processes, relatively simple to manage
- Mainly a Monday to Friday operation for the owner
- Modern plant, around $1.3m invested
- Investment level creates barrier to entry for competitors
- Skilled and experienced staff, including an experienced Factory Manager
- Price includes $807,000 of stock and $615,000 of fixed assets at net book value
- Could be run by a working owner or a General Manager
- Ability to further grow customer base through simple marketing activities

The business will suit someone with good operational and financial management skills, rather than specific technical skills. The owner is supported by an experienced Factory Manager, and is not normally involved in production on a day to day basis.

Net surplus: $872,647 y/e 31 March 2017

EBITDA - Earnings Before Interest, Tax, Depreciation and Amortisation

Tabak Business Sales Limited licensed under REAA 2008

Agency reference #: 240817

Agent's details

Jonathan Barrett
Tabak Business Sales

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