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Import/manufacture and wholesale distribution

Mix of third party manufacture and imports

$2,843,523 - Auckland

#L001362

detail

This business was formed over 20 years ago.  Turnover has grown by 68% over the last four years.  Gross profit margins are very consistent, at 41%-42%.  

Around 60% of the products are made by contract manufacturers.  These are marketed under four inhouse brands.  The remaining products are imported.  There are around 200 product lines.

Sales are almost exclusively B2B.  The largest customer in 2021/22 made up just 9% of sales.

Turnover is highly seasonal.  Last year, 72% of sales occurred between September and December.  This allows an owner to take extended leave at less busy periods, e.g. January/February. 

Business strengths

  • In operation for over 20 years
  • Highly profitable; 2021/22 return to working owner $749,000, EBIT profit $632,000
  • High and consistent gross profit margin percentages - c42%
  • An estimated 95% of sales are business to business
  • Established inhouse brands
  • Sole NZ distributor for a range of overseas suppliers
  • Premium products and reputation for quality
  • No inhouse production required - all manufacturing is contracted out
  • Seasonality means that c72% of sales occur in just four months
  • Very broad customer spread - largest in 2021/22 made up just 9% of turnover
  • Investment in brands and product development, supply arrangements and the scale of the business all create barriers to entry for any new competitors
  • Not heavily reliant on any one supplier or customer
  • Operates Monday to Friday only
  • Run from a single location
  • Relatively modest overheads
  • Relatively minimal fixed assets required
  • Minimal bad debts over the last five years
  • No technical skills/knowledge required of the owner
  • Opportunities for further growth

The business does not require any specialist technical skills of its owner.

Interested parties should click on the link below to accept the confidentiality terms.   We will then contact you to discuss your interest.  Note that the client will need to approve all Information Memorandum requests.

Net surplus: $631,894 year ended 31 March 2022 EBIT

EBIT - Earnings Before Interest and Tax

Contact: Jonathan Barrett
Office: Auckland

Confidentiality Agreement for Business Reference L001362, Broker Name Jonathan Barrett

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.
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