Leading Franchise Brand
Building Sector Market Leader; Increasing Profitability and Sales
$425,000 - Southland
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