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Leading Franchise Brand

Building Sector Market Leader; Increasing Profitability and Sales

$425,000 - Southland

#200918

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This Southland based business is part of a leading National Franchise brand established some 32 years ago and currently has 27 franchisee locations throughout New Zealand. The Southland Franchise has been in operation over 15 years and the current owner has been involved for 11+ years. The business offers a wide range of roll formed steel buildings all manufactured in a central New Zealand location.

The business model is simple and well supported by the franchisor with excellent systems and processes in place. Brand recognition is very high with catchy national advertising that is well recognised. The working owner is supported by a project manager and contractors as required. This ensures fixed wages are kept to a minimum. The historic performance not only includes consistent and increasing market share but also many internal awards the most recent last year.

With sales in excess of $2M and 8-10% falling to the bottom line as owner income (EBPITD), this business has provided a very good living to the vendor who now wishes to move on after 11+ years at the helm. The business operates with a forward work book of between 12-26 weeks.

The business services customers from the lifestyle, rural, residential and commercial sectors. Business highlights include:

  • A regional leadership position
  • High profile, well presented display site on main arterial route in to regional city
  • Excellent marketing and systems in place for the premium brand in the industry
  • YTD sales and forward orders remain strong
  • Strong cash flow business with favourable deposit regime and no stock held

Potential for future growth

  • High energy marketing and networking by new owner operators
  • Leverage off franchisor relationships and support
  • Improved management and follow up on sales pipeline
  • More focus on the 'habitable' and market and commercial larger span buildings
  • Possible addition of new 'satellite' building in a secondary town within the territory
  • Upswing in local permits and values bodes well for the future

The buyer will have a genuine interest in sales and marketing and some experience within, or knowledge of the building industry would be an advantage. Would suit a tradesman who wants to get 'off the tools' but enjoys sales or a H & W team who may have a trades background.

Net Surplus $193,872 EBPITD

Contact: Kevin Peterson
Office: Christchurch

Confidentiality Agreement for Business Reference 200918, Broker Name Kevin Peterson

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 Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 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. We 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 Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 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.

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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