Ad ID: 68567 Inactive

Trade Supplies Business for Sale Christchurch

Trade Supplies - Consumables -  Multiple Markets


Business for Sale Description

Trade Supplies Business for Sale Christchurch

The Opportunity

When evaluating this business the following attributes were considered favourably:

• Well established and profitable

• Mon-Fri business with long-term stable staff

• Wide spread of clients (low/no customer risk)

• A variety of markets serviced (low market risk)

• Very consistent Gross Profit ratios (circa $800k Gross Margin per annum)

• Clear opportunities for growth, particularly in Auckland

• Possible import substitution opportunity for the right buyer

• Guaranteed market as consumables, by definition, need replacing

• Excellent suppliers and strong relationships

• Market leading brands

• Enjoys strong market share as a result of 15+ years history in and knowledge of the market

Core business is the provision of trade consumables to a number of markets including construction; joinery; coatings, flooring and property maintenance. This business has an established positive reputation and is an acknowledged market leader in its sector, with a small stable team of staff generating $2m+ sales this financial year. Based in Christchurch, this is a strong South-Island business that is ready to push into northern markets, if the buyer is NI-based. Tangible assets include stock & plant valued at circa $500k.

Business Resources

The Buyer

To date the business has focused mostly on Canterbury, and positive circumstances have now enabled an additional focus into Central Otago. For an Auckland-based purchaser the obvious expansion will be into Auckland, given the construction profile of that region.

The likely buyer will be:

• A Christchurch person wanting to consolidate and take advantage of SI opportunities

• An Auckland person wishing to establish a footprint in that region

• An existing trade supplies operator wishing to expand the scale & scope of their operations

• A product manager or mid-senior or regional/national manager wanting to take the step into business ownership with an established and successful brand

A market leading business with a guaranteed future!

Sale Price $1,000,000 (incl. 500k of stock & plant)

EBPITD $384,551

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