Ad ID: 84779

GROWTH OPPORTUNITY Business for Sale Auckland

Engineering/contract manufacturing

Location:
Asking:
$967,890
plus GST if any
Turnover:
$1,335,000

Business for Sale Description

GROWTH OPPORTUNITY Business for Sale Auckland

The opportunity

This is an opportunity for someone with a basic understanding of engineering/production processes to take over and grow a highly successful business. This engineering/contract manufacturing business has been family owned for nearly 50 years. It consistently produces an impressive profit to a single working owner.

The business could easily be grown from its current levels by a purchaser with good sales and marketing skills. The present owner does very little in the way of marketing, relying instead on Yellow Pages advertising and the existing name and reputation. All required plant is in place and there is a skilled team of experienced, long-serving production staff.

Over $1.2 million has been invested in plant and other fixed assets. The premises are extensive, and well located for the Auckland motorway network.

A major part of the business is performing high volume contract manufacturing production work for corporate clients. Gross profit margin averages around 45% (after wages and materials costs).

The client base is diverse. In 2018/19 the largest single client made up 8% of revenues.

Business strengths

  • In business nearly 50 years
  • High gross profit margins - average 45% across the last four financial years 
  • Broad range of production capabilities
  • Trained, experienced and loyal workforce – average length of service 12 years
  • Extensive plant – c$1.2 million of fixed assets at cost
  • Large, well located site
  • Broad spread of corporate clients - not reliant on any one client
  • No bad debts in the last four financial years
  • Scope for further growth through marketing

The buyer

This business is likely to suit someone with a basic understanding of engineering and manufacturing processes, and good sales and marketing skills.

Sale price: $967,890

Net surplus: $351,960 year ended 31 March 2019 EBPITD - Earnings Before Proprietor, Interest, Tax and Depreciation

If you are interested in this business and would like more information, please copy the link below and then click on the link headed 'Find out More' to complete the confidentiality agreement.

https://tabak.co.nz/opportunity/engineering-and-contract-manufacturing

For further information about this business, please contact Jonathan Barrett on 021 538 194.

Interested In This Opportunity?

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Tabak Limited (Tauranga)
For more info
Contact:

Jonathan Barrett

021 538 194
Business hours
Tabak Business Sales (Tauranga)
Licensed REAA 2008
Broker Ref: 200619

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