Steve Smith AREINZ
Managing Director

Steve Smith AREINZ
MANAGING DIRECTOR

Established for over 25 years, the business sells products on an indent basis to major retail chains in New Zealand and Australia as well as to smaller local retailers.  The business has been following a consistent, seasonal sales cycle for many years.

Selling starts each year with the posting of catalogues to the 800 plus database of customers.  Orders are then collated, and placed with the offshore providers. The owners visits to Asian and European tradeshows and suppliers’ factories take place during the April - June period.  When completed, products are shipped to a contract New Zealand warehouse where they are stored pending delivery as per the order delivery dates.  Some stock is sent directly to some of the larger customers from Asia based on a “Free on Board” delivery package.  The business has installed a custom built Management Information system which handles all customer orders and purchases to provide seamless information flows between the contract warehouse, customers, suppliers and the business.  The system can be fully utilized by remote access technology and is often driven from overseas locations while the owners are on holiday or visiting tradeshows and factories in Europe and Asia. 

Strengths of the Business

Suppliers: The business has established strong relationships with reliable, long term suppliers from whom it receives good support.

• Product Range: The business has developed a comprehensive product range which reflects the standard needed to maintain sales in this market.
• Customers: The business has regular customers ensuring continuity of sales with minimal bad debts.
•  Easily Relocateable: The business is not location dependant as all its customers are geographically well spread.
•  Home Based: The business has minimal overheads with excellent margins and could easily be run from a home office.
• IP: The business has intellectual property rights for many product designs and has arrangements to use designs from an English associate.
• Size: The business has a distinct competitive advantage is its size and position in the marketplace.  Asian manufacturers require significant minimum order quantities on some lines and its significant turnover allows it to achieve these minimums.

Financials

This business has maintained its revenue streams since 2008 despite the recession, during which time the systems have been fine tuned to remove any excess expenditure, and margins have been maintained or increased.

Owners Surplus for the last 3 years $255,512, $219,582, $254,618

Owner's Input

There are two owners who work a combined total of 40 hours per week in the business and all other functions have been contracted out to selected and proven providers.  One owner, who works on average 30 hours per week, is responsible for sales and product development. The other is responsible for systems and finance and works on average 10 hours per week.

The present owners feel that a single new owner could easily cover both roles without the addition of any extra staff members.

Premises

This business could operate from a residential property and requires only a small home office/showroom area. Any unused bedroom or garage would be ideal.

Summary

This is a well run, profitable business which should provide an owner operator with an income in excess of $250,000 p.a. as well as international travel and lifestyle privileges.

Asking Price 

Tangible Assets                               $20,000
Intangible Assets                            $430,000
Stock                                             $120,000

TOTAL PRICE                                $570,000

Contact Peter Nola
09 630 1600, 021 507 313

Ref: 23311

Click here to email the agent

Overview

This business is centrally located in a prosperous Waikato township. The vendor has owned this business since 2006 and has built it up to be a successful, profitable enterprise.

The primary activity is the repair of cars and light commercials. The business is authorised by Ford and Mazda to provide parts and service, approved under warranty. It is also an approved AA breakdown contractor providing a 24 hour call-out and battery service and is also a parts stockist to other repairers and construction companies in the area.

The business currently only opens five days per week (plus the 24 hour call-out for AA) and operates a full workshop facility, including WOF, with courtesy vehicles being provided.   They have the latest in diagnostic equipment with a central computer “dealership” system utilised for all reporting. This system can also be operated off-site. The business also facilitates NZTA transactions providing RUC and vehicle registrations.

Fleet servicing is carried out for local business operators with all makes of vehicles.

Staff

The current owner works full time in the business, managing the day to day operations, and is supported by an experienced foreman. Parts are managed by a parts manager. A capable office manager runs the office function. Three technicians are employed, two of whom are qualified.

Summary

The year to 31 March 2011 shows a net cash surplus to the owner of $188,000 after all expenses. Whilst this is less than the previous two years this is an excellent result with margins being maintained. The six months to September 2011 reveal further consistent trading with sales of $459,000 and a net surplus of $100,000.

The owner has identified areas of potential growth; The AA would like a tow truck in the local area for salvage work. There is also potential to provide rental cars and vans locally as a complementary service, particularly with synergy to do breakdown work. There is further potential to grow the parts business and/or stock tyres.           

An excellent opportunity to purchase a well performing automotive business in a prosperous Waikato Town. This well managed business has consistent income, key staff in all areas, low rent and overheads, a comprehensive IT management system, and good chattels.  All of this adds up to proven profitability and great prospects going forward. In addition there are areas identified to develop further income streams.

Asking Price 

Tangible Assets                              $80,000
Intangible Assets                           $175,000
Stock                                             $80,000

TOTAL PRICE                              $335,000

Contact Scott Laurence
07 834 3512, 0274 735 425

Ref: 80014