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Rental Hire - Health And Safety Legal Requirements

Excellent Financial And Operational Performance

$3,995,000 - Auckland



This is an excellent opportunity to own a well-established and highly profitable business. Recent and on-going changes to Health & Safety regulations and Worksafe practices via the Health & Safety at Work Act 2015 mean the business has a government mandate to grow.

The business rents, erects, and then dismantles scaffold mainly to construction companies - for both the commercial and residential markets. Previously, contractors could paint a two storey house with ladders that now require scaffolding to be used. Breaches of the law are treated seriously and may result in financial penalties to the contractors and property owners.

The business also hires or charges for other services including:

  • Site fencing
  • Mobile towers
  • Roof edge protection
  • Plastic wrap.

Strengths of the Business

  • Recognised and long-established brand in the scaffold industry
  • Consistent and reliable revenue from scaffold hireage and 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 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.  A new owner can grow the business further by:

  • Broadening revenues due to ongoing Health and Safely 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
  • Implementing an improved business development and marketing strategy

In FY17 the business achieved an EBITDA (Earnings before Interest, Tax and Depreciation) of $1,217,452. For FY18, based on the actual results for the 11 months to February 2018, the provisional EBITDA will be $1,171,000. The ability of the business to continue to deliver superior financial results proves the business value is sustainable. Rental revenues are continuing to make up approximately 50% of all turnover ensuring a continuing source of income into the future.

Net Surplus $1,171,000 (Provisional FY 2018) EBITDA

Contact: Andrew Larsen
Office: Auckland

Confidentiality Agreement for Business Rederence 200617, Broker Name Andrew Larsen

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 (Licenced under REAA 2008) and/or Tabak Business Sales Limited (Licenced 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. 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 (Licenced under REAA 2008) and/or Tabak Business Sales Limited (Licenced 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.

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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