ABC BUSINESS

WELCOME

Steve Smith AREINZ
Managing Director

What are we selling?

We have just had our busiest month since January 2008, in spite of the state of the economy and the doom and gloom portrayed by the media, due mainly to the experience of our brokers and the consistent high profile marketing campaigns of ABC.

The economy is picking up as shown by the latest news providers indicating the overseas stock markets showing a lot more green arrows than the downward red ones. National Bank monthly survey points out that business confidence is improving.

In the last 3 months 44.6% of our sales were in the hospitality sector, 45.7 % of the sales were general businesses, (mainly service type) and with the balance transport and miscellaneous.

Interestingly, 49.2 % of the buyers were from an ethnic background and we have found that these buyers appear to be more “cash – rich” and thus not so dependent on bank finance to buy.

ABC has a very strong Asian influence among the brokers which may be a reason why we have done so well. Our sales are very buoyant so we are very short of listings. If you are thinking of selling now is the time to talk to one of our team.

Regards,

Steve Smith AREINZ
MANAGING DIRECTOR

FOUNDATION FOODS

Location

CANTERBURY

Overview

New to the market, this is an exceptional food manufacturing business that presents a new owner with strong operational advantages that are reflected in the financial margins achieved by the business. Over the past 15 years the current owners have spent time optimising the returns they have received from trading, they now wish to convert their efforts into a fair market value for the business that reflects the assets employed and transferable earnings available.

Whether as an investment, owner operator, or an attractive product line extension this business is worthy of further investigation.

Business characteristics:

Niche

market

Strong history of growth

Proven track record - 15 years

Gross Profit - 78% of sales revenue

Discretionary income - 31% of sales revenue

Variety of business synergies

NZ distribution network

The business offers a variety of business synergies with existing food service, food manufacture and investment companies. The business is positioned to take advantage of further business opportunities as it continues through its growth cycle. New products, an increasing wholesaler distribution network, strong established market share in a growing population – Christchurch and efficient production technologies present favourable economic benefits through acquisition of the business.

The business has a proven track record, a profitable record of operation, an existing customer base, a well known name, location, marketing and sales strategy that can be utilised by either an existing business activity or a stand-alone purchaser/investor looking to purchase a growing business to transfer the earning capabilities.

The value of this business can be perceived differently depending on the type of buyer.

Investment Opportunity

Ideal for purchasers looking to invest in a well established, well-known business with transferrable earnings capabilities in a market that allows for further growth. The business systems provide strong profitability that includes the provision for any management expenses associated with the generation of those earnings.

Ownership Opportunity

Purchasers looking to benefit from the goodwill associated with the purchase of a going concern business. The business structure enables an owner operator to benefit from the discretionary income generated by the business.

Distribution Opportunity

Purchasers looking to increase current product range to existing client base through the introduction of purchasers products or the addition of the businesses product range to their client base.

Technology Opportunity

Purchaser looking to utilise a highly efficient extraction and infusion production process to complement their current operation. Opportunities exist in Bio fuel supply, increase economies of operation and joint venture development of new products.

Growth Through Acquisition

Purchaser looking to grow their business in the Canterbury region without the cost, time and risk associated with the establishment of start-up business in the market. Through acquisition the Purchaser will be able to quickly benefit from increased market share and reduced competition.

Business Records

Business records will be released upon the signing of a confidentiality agreement. The records will include

Business Profile

Financial records (3 years) prepared by a registered Accountant

GST returns from 1^st April 2009 to present

Production facility lease

Registered Plant and Machinery Valuation plus additional purchases

Business Appraisal

Asking Price

Total $1,675,000.00 (plus stock at valuation)

This business has been pre-appraised by the BNZ for priority service.

Contact Ross Gibson 03 379 0379, 021 125 1936

Ref: 30180

Click here to learn more

BUY AN EXISTING BUSINESS

Richie Lowe AREINZ

It is usually safer and easier to buy a going concern than it is to start one up from scratch. It is generally accepted that a number of new start-up businesses fail in the first few years due to reasons such as, under- capitalisation, inexperience of the new owner and not knowing the market. The security in buying an existing business is that you know what you are getting:

An existing customer base – means cash flow from day one
Accepted products and/or services – already developed and accepted in the market place
Existing employees – most valuable. Experienced and skilled people who understand the business.
Operating systems – the key to any business. The systems developed may be perfect or may need changes
History – the business has trading history and lessens the risk for a buyer who earn build on the past performance.

Decide what you wish to achieve in owning a business. Do you have the determination, personality and financial resources required. Seek professional advice - a good place to start is with an ABC business broker.

Richie Lowe is General Manager of Affiliated Business Consultants Ltd (ABC) and Immediate Past Chairman of the Business Brokers Division of the Real Estate Institute of New Zealand..