Businesses for Sale

This supplier of specific product to the motor vehicle industry was established in 1980 and has been owned by the current owner since 1986. In recent years the owner has devoted an increasing amount of his time to other pursuits, which has caused sales to drop. However, through increasing margins the profitability has been maintained reasonably over the last few years. The owner now wishes to devote his attention full time to his other interests and with no succession plan in place, has decided to put the business on the market.

Operations:

The business operates from Monday to Friday 8.00 a.m. to 5.00 p.m.

Market / Customer:

The target market is motor repair shops, exhaust specialists and some new car dealerships, as well as some of the chain retailers, including Repco, Bersons and Autobarn.

The database of approximately 400 customers (200 regular) had a good spread with no dominant customer.

Terms of trade are 30 days from date of statement.

Products / Services:

Towbars

The main and dominant product supplied by the company is towbars. The company is the sole and exclusive distributor of this well known brand of towbar for Victoria, Tasmania and parts of southern New South Wales. Stock is obtained from the manufacturer who maintains high stockholding, so that this business is able to maintain a very efficient level of stock and achieve good stock turn ratios, thus minimising the investment in inventory.

Cargo Barriers

The company sells a branded steel framed, steel mesh cargo barrier used as a safety device in station wagons, vans AND SUV’S. The product is locally manufactured in Melbourne and distributed without restriction throughout Australia.

Performance Suspension

This division represents the best growth prospects for the company. A branded range of strut braces, sway bars and alignment products. There is major scope for growth in this product range, which has been adversely affected by a lack of marketing effort on the part of the owner, owing to his commitment to other interests.

Premises:

The business operates out of leased premises, 800 square metres in extent and is currently out of lease. The owner of the building is keen to retain the business as a tenant, and the signing of a new lease is not seen to be a problem. Rental is currently $5,000 per month, including outgoings.


Management / Staff:

The business is run by the owner who spends more than half of his time on other interests and his role in the business is mainly centred on monitoring finance and taking sales calls. He is assisted by his daughter who does the administration, catalogue production and also takes sales calls. There is one full time employee employed in the warehouse who attends to goods inwards, deliveries and also handles telephone sales.

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To receive ADDITIONAL INFORMATION on this business, please contact Steve Lentin:


Telephone (03) 9569 2883
Fax (03) 8677 0868
Mobile 0419 910 099
Email stevel@accordbrokers.com.au.