Opportunities

Return to all opportunities

Manufacture & Sales Business for Sale

Primary Sector; Established & Profitable; Excellent Margins; Environmentally Sustainable

$1,100,000 incl. stock & plant - Canterbury

#L001775

detail

Business Background

This excellent business now generating circa $1m in annual sales ticks all the boxes, and for all the right reasons:

  • Established and profitable
  • Unbeatable margins & modest overheads 
  • Relatively simple manufacturing and established recipes/procedures
  • Compliant within its regulatory environment 
  • Recent peer-reviewed published scientific paper, showing industry-leading breakthrough in reducing nitrate leaching (91%) & nitrous oxide emissions, while increasing dairy production (14%) & profit 
  • International and local recognition for being the best within Asia Pacific 
  • Proven and sustainable with measurable pastoral benefits
  • Reduces nitrates and propensity for erosion
  • Sales rebounding strongly after a distribution reset several years ago
  • Clearly identified opportunities for improvement
  • Modest market share but huge opportunity
  • Owner & wife collectively work less than 1 x FTE
  • Established manufacturing facility but could be relocated

The Seller; The Buyer

The owner has not enjoyed good health for a few years and now needs to pass the mantle to a more energetic owner who can also be passionate about “giving back” to the planet as well as operating a very profitable business. The brands and products available through this business are biologically formulated and deliver outcomes that are acknowledged and valued by its customers.

The successful purchaser could generate significant income and sustainable return on investment by applying the following attributes:

  • Being comfortable working alongside sales commission agents
  • Understanding all aspects of keeping all business clients, suppliers and stakeholders happy
  • Wants to feel great about the clear benefits to the environment arising from their products
  • Wants to increase the scale of this business three-fold in the next few years, which is currently forecast to be very achievable.

Premises

The business currently operates from a purpose-built outbuilding on a lifestyle block, and rent-free occupancy will be provided to the new business owner for the first twelve months, after which a fair rent will be negotiated.  Ultimately a relocation of the business could easily be to a lifestyle block; or a small industrial building anywhere within Canterbury or even New Zealand, but any new owner is encouraged to become fully familiar with the business and manufacturing process prior to any relocation.


FME Surplus:  $476K EBPITD   -  $376K EBITDA

EBPITD = Earnings Before Proprietor, Interest, Tax and Depreciation
EBITDA = Earnings before Interest, Tax, Depreciation and Amortization

Contact: Sami Chesterton
Office: Christchurch

Confidentiality Agreement for Business Reference L001775, Broker Name Sami Chesterton

Between Tabak Business Sales and the Interested Party.  The Interested Party must be an individual's name, NOT a company name.

In consideration of Tabak Business Sales (being any or all of Tabak Limited (Licensed under REAA 2008) and/or Tabak Business Sales Limited (Licensed under REAA 2008) and their respective business brokers) entering into discussions relating to the possible acquisition of the assets or shares of any business(es) presented to me by Tabak Business Sales and specifically the business referenced above, I/We hereby agree and undertake as follows:

  1. To treat as totally confidential the identity of the business(es) disclosed to me and any details as to its operation or financial accounts;
  2. I acknowledge that the financial records, customer and supplier details and other information relating to the business to be disclosed to me shall at all times remain the sole and exclusive property of the Vendor and that such information is of competitive value and of a confidential nature and that loss or damage would be sustained by the Vendor if such information should be used or divulged by me for any purpose other than the evaluation of the purchase of the business or should it become into the possession of an unauthorised third party;
  3. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorised in writing by the Vendor or by Tabak Business Sales;
  4. Not to make an approach to the Vendor of any business disclosed to me by Tabak Business Sales, or the business' staff, customers or suppliers without prior arrangement with Tabak Business Sales and to refer all queries through Tabak Business Sales;
  5. I acknowledge that Tabak Business Sales is the introducing agent, and that all offers and deposits for the business, shares or property will be conducted through that office;
  6. If, I as a potential buyer breach clause 4 of this agreement and buy directly or indirectly this business from the Vendor of the business quoted then I the buyer will be responsible for any loss of commission due to Tabak Limited (Licensed under REAA 2008) and/or Tabak Business Sales Limited (Licensed under REAA 2008) as the case may be;
  7. If, I as a potential buyer breach clause 1, 2 or 3 of this agreement I undertake to indemnify Tabak Business Sales against any actions, proceedings, costs, claims, demands or liabilities which you may suffer in consequence of that breach;
  8. That all information is received for no other purpose than the evaluation of the investment potential of the business;
  9. If I decide not to proceed with the investment, I agree to immediately return to Tabak Business Sales all written information supplied by it and retain no copies and to delete any electronic records including all emails and attachments relating to the business(es);
  10. Acceptance by Electronic Mail: Execution of this Agreement and transmission between the parties by electronic signature and email response each to the other or their representative will constitute offer and acceptance and satisfy the requirements of Section 5 of the Electronic Transactions Act 2002.
  11. Privity: For the purposes of Part 2, Subpart 1 of the Contract and Commercial Law Act 2017, the parties acknowledge and agree that the agreements and undertakings given by the recipient in this Confidentiality Agreement are given for the benefit of the Vendor and its related companies and representatives, and are enforceable at the suit of all or any of them.

Before proceeding with this Confidentiality Agreement, it is recommended that any prospective purchaser

  1. seeks legal advice.
  2. may or may need to seek technical or other advice and information.
  3. review Tabak Business Sales’ internal process in relation to any complaints.  A copy of these can be found here.
Mandatory Fields*