Manufacturing business - rural sector (production outsourced)

Potentially relocatable

  • Asking price: $608,934
  • Listed: Mon 6 Nov, 4:48 pm
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Listing #: 1460508432
Location: Auckland City, Auckland
The opportunity

This is a great opportunity to purchase an established manufacturing business with a well-known and respected brand in the rural, equestrian and farming community. All products are contract manufactured by third parties on the business’s behalf. Day to day operations are therefore relatively simple, consisting mainly of purchasing materials and dealing with customers.

The main routes to market are phone and internet sales. The business sells to the general public and therefore there is no reliance on any single customer. Due to the outsourcing of production, the business runs from a small office and does not require a factory or plant. The addressable market is very large.

Business strengths

- Quality product with reputation for reliability
- Known and respected brand – notably in the rural sector
- Very broad nationwide customer base
- Fundamentally simple business model
- Only three staff to manage
- Monday to Friday operation
- All production outsourced
- Advance customer payment eliminates credit risk and creates positive cashflow
- Strong pipeline of qualified sales leads
- Price includes $80,000 of stock
- Ability to further grow customer base through simple marketing activities or adding new product designs
- Scope to sell other rural/equestrian products to the same customer base
- Could potentially be relocated anywhere within New Zealand

The buyer

The business will suit someone with good general management skills, and ideally a marketing focus. As production is fully outsourced, the owner’s role is not a technical one.

Sale price: $608,934

Net surplus: $263,073 projected 2017/18

EBPITD - Earnings Before Proprietor, Interest, Tax and Depreciation

Agency reference #: 261017

Agent's details

Jonathan Barrett
Tabak Business Sales

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Expires: Mon 27 Nov, 4:48 pm
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