Listings } Tabak

200617 - Scaffold - $4,800,000

Location: Auckland. Ref #: 200617. Excellent Financial & Operational Performance

 This is an excellent opportunity to own a well established business which is an essential supplier to the building and construction industry. While the business erects, rents out and then dismantles scaffold mainly for construction companies, it also provides:

  • Site fencing
  • Mobile towers
  • Roof edge protection; and
  • Plastic wrap

The business has doubled its revenue and trebled its earnings before interest, tax and depreciation since 2013 despite the fact that it has never had a specific growth strategy. If a new owner wants to continue to grow the business further, the following actions could be considered:

  • Broadening revenues due to ongoing Health and Safety regulation changes
  • Continuing to invest in scaffold equipment to grow rental revenues
  • Improve sales and marketing efforts especially around website
  • Consider new business areas like fall arrest systems and scissor lifts
  • Improve management and supervision of staff to deliver productivity gains; and
  • Implementing an improved business development and marketing strategy

Strengths of the Business

  • Recognised and long established brand in the scaffold industry
  • Consistent and reliable revenue from scaffold rental
  • Good database of repeat clients developed over several years
  • Very good location close to motorways and central city
  • Multiple revenue streams including fencing and plastic wrap
  • Continuing investment in scaffold ensuring future rental income; and
  • Strong Financial Performance

The ideal owner of this business is someone who has a sales and marketing or business development background. In addition, they will want to grow the product range and services the business offers. They should also have the ability to talk as easily to builders and developers as they do to management and building owners. Whatever their background, they will be acquiring an excellent platform for continuing growth and an ability to see the business reach its full potential.

Net Surplus: $1,217,452 (Actual FY 2017) EBITDA

Contact: Andrew Larsen

Office: Auckland



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