Newsletter Biz Boker WA
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Transcript of Newsletter Biz Boker WA
Our larger business values review
Comment from GMO analyst/broker Richard Marr
Spring/Summer 2010-2011
Inside: we examine larger business transactions and the price earning relationship in businesses valued between $3million and $60 million
See our review of larger business sales on page two of this publication* Source: The West Australian.
Sales of larger privately held businesses are beginning to gather pace as the market
emerges from the shock of the northern hemisphere crisis and bankers, buyers, sellers and private equity firms become more active.
In recent months a modest number of these private to private or private to public transactions have settled, albeit at lower price earnings multiples when compared to the boom years of 2005-2008.
The recent announcement by Skilled Group Limited of their intention to dispose of Swan Contract Personnel will be of particular interest to the market as the impending sale will be the first re- sale of a business purchased during the boom period.
Skilled is reported to have acquired SCP for up to $44 million in January 2007 on an historical six times EBITDA multiple and on revenues of $130 million. Given that SCP now has reported revenues of $170m and an EBITDA of $8.5m * the market will show great interest on the EBITDA multiple achieved when a resale is announced.
The general perception in the marketplace is that price earnings multiples are substantially lower in 2010 than the boom period. This is largely due to a “trickle down” effect, where the price earnings multiples of publicly listed companies in all stock exchanges have retreated since the GFC.
After Tax Price Earnings Ratios on the all important US Dow Jones Index have fallen to twelve times predicted 2011 earnings from a high of twenty three times historical earnings in September 2009. The story is similar in European markets.
These leading indicators have a containing influence on Australia’s All Ordinaries Index, which in turn trickles down to the EBIT multiples Australian Public Companies are prepared to pay for privately held businesses.
The issue has also been compounded by stringent lending from the major banks.
HarbourVest (a leading global investment firm) recently estimated that since the first half of 2007 average EBITDA multiples in Australia have fallen from 8.8x across all transactions (large and small) to 6x by the end of 2009, The significant decline in this average was largely driven by lower debt funding – falling from 5.5x to 3x (ie gearing from 62.5% to 50%).
The perception in America and Europe is of either a weak recovery or no recovery at all, plus concern about Inflation but ironically also Deflation.
Whilst we observe that there is greater uncertainty and less optimism in America and Europe than locally it is also a fact of business life that we do not live in our own private economic world and the US/European uncertainty factor is a containing effect on EBIT multiples locally. Our major economic partner is China and the Chinese outlook is more optimistic than most other G20 nations.
Optimists are hopeful 2011 will show a local Goldilocks Economy showing steadily improving growth with inflation nicely under control.
However, the most prudent way to view future prospects Locally is to think Globally.
So what would encourage buyers to pay higher EBIT multiples? The answers appear to be:
1. Strong earnings growth2. Clarity of economic indicators3. Global financial stability
We already have some of the pre requisites which would satisfy these requirements. The resource services order book is about to regenerate after the GFC lull, so stronger local earnings growth should begin to be seen in 2011. More and more economic commentators are making confident comments about the GFC effects being behind us and tellingly both Rio and BHP are back on the acquisition/ expansion trail.
On that evidence GMO’s Corporate Broking Team expects the pace of sales of larger privately held businesses to accelerate, but for their price earnings multiples to remain relatively constant in 2011 before edging marginally higher when “the runs are on the board” and the perception of profit growth has become reality.
In the interim, sellers hoping for a slightly higher EBIT multiple should expect a multi stage payment arrangement based on post sale financial targets being met.
Readers who would like a discreet discussion on their own exit strategy are invited to contact me directly on 94814422.
GMO SUMMARY OF SALES OF PRIVATELY HELD BUSINESSES
2010
2008
2007
2006
2009
Industrial Hire
Consumer Production
Resource Tooling
Pipe Servicing
O&G Engineering
Mining / Mechanical
Surveying / Mapping
Electrical Distribution
Recruitment
Mining Equipment
Telecommunications
Water ServicesManufacturing
Recruitment
People Transport
Mineral Testing
Construction
Construction
Engineering
Corrosion Services
Food Distribution
Engineering
Container Logistics
Hydraulics / Transmissions
Scrap Steel
Food Distribution
Resource Tooling
Mining Equipment
Hardware Distribution
Austin Engineering
Private Buyer
Northbridge Industrial
Monadelphous
Private Buyer
Allmine
Emerson Stewart
Private Buyer
Private Buyer
Private Buyer
Private Buyer
Private Buyer
Skilled
Private Buyer
Intertek PLC
VDM Ltd
Paladio Ltd
RCR Tomlinson
Cape PLC
Private Buyer
Crane Group
Coote Ltd
Coote Ltd
Bradken Ltd
Private Buyer
Private Buyer
Private Buyer
Private Buyer
$13.0m
$3.4m
Up to $16.9m
Up to $30.0m
$10m
$1.85m
$9.0m
$2.6m
$3.2m
$15m
$3.6m
$3.3m
$44.0m
$4.3m
$42.0m
Not disclosed
Not disclosed
$24.0m
$85.0m
$5.7m
$100.0m
$12.5m
$5.0m
$4.2m
$3.4m
$5.5m
$25m
$2.95m
EBIT
EBITDA
EBIT
EBIT
EBIT
EBITDA
EBIT
EBITDA
EBITDA
EBITDA
EBITDA
EBITDA
EBIT
EBITDA
EBIT
EBIT
EBIT
EBIT
EBIT
EBITDA
EBIT
EBITDA
EBITDA
EBITDA
EBITDA
EBITDA
EBITDA
EBITDA
3.3
2.3
3.4
3.0
5.0
2.6
5.2
3.2
3.5
5.0
3.6
2.6
6.0
2.6
8.0
3.8
5.0
4.9
6.1
3.5
7.5
3.3
2.6
2.9
3.7
3.9
5.0
2.8
WABN
GMO
WABN
WABN
KPMG
WABN
WABN
GMO
GMO
KPMG
GMO
GMO
WEST
GMO
WABN
WABN
WABN
WEST
businesssale.co.uk
GMO
WABN
ASX
ASX
ASX
GMO
GMO
KPMG
GMO
YEAR TARGET ACQUIRER PRICE EBIT/EBITDA MULTIPLE SOURCE
Source LegendWABN – WA Business News
GMO – GMO WA’s Business Broker
WEST – The West Australian Newspaper
BUSINESSSALE.CO.UK – www.businesssale.co.uk
ASX – Australian Stock Exchange
KPMG – KPMG Corporate Finance
Comment from GMO analyst/broker Richard Marr
What’s in store for 2011? In the SME business sales marketplace we anticipate:
1. Profits to recover some lost ground 2. Sellers who delayed their sale due to
the GFC re-entering the selling arena3. The big four banks and their two
satellites to continue to be cautious in their suitability, serviceability and security analysis of business loan applications
4. The fringe lenders to become more relevant in SME lending in 2011
5. The supply of small and micro businesses for sale to increase
6. The supply of medium businesses for sale to increase
7. Interest rates more likely to rise than fall – but the loan funding pool available for SME is likely to improve
8. The supply of buyers in various categories to be affected by the implied reduction in business migrants (as a consequence of policies announced during the election campaign)
9. The supply of buyers to also be affected by the unemployment rate in WA. If the rate trends down below 4% as predicted by the Chamber of Commerce and Industry- sellers will
have few buyers entering the market place due to retrenchments
10. The possible combination of increased supply and marginally reduced demand would indicate price earnings ratios or ROI percentages will not trend positively for sellers of small and micro businesses in 2011
11. The larger your business- the better the prospects for a pleasing sale outcome, whilst conversely the smaller and more marginal the business, the greater the degree of difficulty in obtaining buyer interest
Comment from GMO analyst/broker Murray Brown
Underpinning any credible and defensible valuation of a business is full information – both
operational and financial. You cannot appraise a business purely on the basis of its financial accounts. It is imperative to know what a business does, what makes it tick, what risks does it face, and where the opportunities are. Contracts, key people, tenure, personal goodwill, and competition are just a few of the things you need to know.
And, when you get to the financial accounts they may need “normalisation” to establish the true earning capacity of the business. Discretionary expenses and interest should be added back, owner’s salary may need adjustment to market level, and increased costs (e.g. rent adjustments) should be allowed for.
More than one valuation approach (earnings-based, market-based and asset-
based) should be considered and applied to reach a valuation conclusion – and don’t forget the Sanity Test.
So far so good – but value is not necessarily the same as price. The price paid may vary from value according to the motivations and the negotiating skills of the parties.
Also, in a real world transaction the terms and conditions and warranties in an agreement for sale and purchase will impact price. Such things as vendor finance, restraint of trade, training and transition provisions, on-going consultancy, contract transfers, etc may all significantly influence price. As the old saying goes: “you may name the price, if I may name the terms.”
Business valuation is not a simple accounting exercise. A good appraisal will follow a strict process, and involve many subjective judgements, and be based on a number of assumptions.
4 top websites:businessvaluer.net.auAustralia’s primary co-operative website with 18 business valuers spread across six states featured on one easy access website. This is an ideal reference point for family court lawyers or accountants whose clients need a business valuation.
perthvaluer.com.auWhether you need a business valuation, a property valuation, an art valuation or a valuation for plant and equipment or for stock, this co-operative site is a one stop E shop.
southshorefinance.com.auWestern Australia’s most respected finance brokerage, operated by industry leader Michael Coombes.
waccc.com.auThe Chinese Chamber of Commerce WA website, featuring many business and joint venture opportunities.
Ross Scott’s GMO Shortcuts
How much is that business worth? A valuer’s perspective Comment by GMO analyst Mehra Kazemi
Australia’s economic muscle
Comment from GMO’s Miles McNaughton
How well does Australia rate as a world economic power? We know we are now in the G20, but what
economic grunt do we really have? The answer lies in the new PURCHASING
POWER PARITY TABLE produced from IMF/IBIS data, which brings the price of all goods and services of the same or similar products up to US priced terms.
This shows us we rank at number 17 with 1.2% of world parity purchasing power. As expected the USA and China are the big players, but it is interesting to note they are together only one third of world purchasing power. Here below is the premiership table:
1. USA 20.5% 2. China 13.3%3. Japan 6.0%4. India 5.3% 5. Germany 4.0%6. Russia 3.1%
7. UK 3.1%8. France 3.0%9. Brazil 2.9%10. Italy 2.5%11. Mexico 2.1%12. Spain 1.9%13. South Korea 1.9%14. Canada 1.9%15. Indonesia 1.4%16. Turkey 1.3%17. Australia 1.2%18. Iran 1.2%19. Taiwan 1.0%20. Netherlands 0.9%Rest of the world 22.7%(208 nations) For those readers who are disappointed
Australia ranks only seventeenth on this premiership table….take comfort it is only one place behind the Eagles!
Sovereign Debt Ratios
Australia’s Sovereign Debt Ratio appears to be well under control compared to most nations. Is this dumb luck or good management?
The ratio of Debt to Gross Domestic Product of a nation.
Australia 19%USA 92%Japan 192%Greece 100% plusItaly 100% plusAustralia 120% Source: IMF(in 1946)
GMO Accountancy Practices Review
Garry Manners
GMO Accountancy Practice Broker Garry Manners overviews the eight key success factors for Accountants.
Australia’s accountants have experienced relatively “flat” trading conditions in the past
year and predictions from IBISWORLD indicate that profit margins are likely to be reported as slightly lower in 2009/ 2010.
We note that IBISWORLD has recently identified some major factors which accountants should concentrate on to ensure continued success. They include:
1. The ability to effectively manage risk2. Being a member of an industry
organisation3. Establishing a quality brand name4. Recruiting and maintaining an
experienced work force 5. Ensuring optimum capacity
utilisation6. Having access to the latest and most
efficient technology7. Ensuring excellent customer
relations8. Accessing and servicing niche
marketsWhile many of the services accountants
offer their clients are compulsory in need and nature, I do note that some non - discretionary accounting services have been hit by clients cutting costs and sacrificing “non - essential services”.
Some of the services clients have been cutting back on include:
• Expansion/acquisitionadviceand• CapitalraisingadviceandIPO’s
The major cost in the accounting industry is labour, with wages and associated costs accounting for 46% of industry revenue. The partnership structure in the industry tends to understate the true cost of labour because partners take a share of profits rather than receiving a wage. Consequently the accounting industry has traditionally reported profitability of close to 20% of revenue. However the recent flat trading conditions are expected to result in 2009-10 results being closer to 19%. (source: IBISWORLD July 2010)
It may be that the employment see- saw is swinging in favour of accounting employers in 2010-11 as a number of expatriate accounting staff return from depressed markets overseas and seek employment back in their home Australian cities.
Other key points I note affecting the accounting sector are:• Managingtheleveloftechnology
change is a growing challenge to smaller practitioners.
• Theelectroniclodgementoftaxreturnshas increased significantly recently
• Thelevelofgovernmentregulationisincreasing
• Newregulationsforreportingrequirements (including the Anti-
Money Laundering Act, the Counter Terrorism Act and the Emissions Trading Scheme) will fuel extra work for accountants.
• Accountantsarefacingincreasingthreats from the Legal Services industry, the Management Services industry and the Computer Services industry.
If you believe your practice has challenges in meeting the eight success factors and that a merger with another practice would strengthen you, call me on 9481 4422 as I can introduce you to “like minded practitioners”.
As always, I have some accountancy practices available for purchase at GMO and am available should you wish to have a discreet discussion about your own expansion or exit planning.
Garry Manners
IGA supermarkets face fresh challengeComments from GMO’s supermarket broker Kerry O’Hehir
IGA supermarket proprietors already know there is a trend towards more aisle space being allocated to fresh food products, but the new Woolworths supermarket format has rammed the point home with Woolies reportedly devoting 33% of floor space to fresh food categories,
up from just 20% six years ago. Macquarie Bank estimates the Coles
supermarkets fresh food offering now runs at 30% of floor space (up from 18% before the Wesfarmers takeover).
The challenge for IGA owners is to increase their meat, dairy, bakery and
fruit and vegetable floor space whilst still having enough square metreage to have comprehensive dry, processed and household products on offer.
IGA still have significant advantages over the majors, not least of which is their easy local convenience and parking.
DID YOU KNOW?
Perth fuels national growth!
There are now 716 listed Public Companies in Perth, 645 in Sydney, 388 in Melbourne and 199 in Brisbane.
Source: ASX – Australian Securities Exchange
Banks have ‘tightened up’ but are still open to lending money for business purchases
If you’re planning on purchasing a business, will the banks be open to lending you the required finance?
Jim: Rob Bransby (ex NAB and now HBF CEO) once wrote an article on business finance highlighting the three “s”….security, serviceability and suitability. Do these criteria still fit into the lending matrix of Australian banks?
Michael: They form the framework for any lending submission, but over recent years the advent of new technology, access to better data and more sophisticated analysis systems, have made the assessment of lending applications a much more technical process. Whilst this has some advantages, I am a firm believer that human analysis, the “old gut instinct”, can never be replaced by a computer programme.
Jim: Are finance brokers finding it harder in 2010 to get bank finance approval?
Michael: The banks have definitely toughened their credit criteria. I have often been told by banks that they have not changed credit policies in recent times. They may not have changed policy, but they have definitely changed the interpretation of policy! In essence they are now almost micro managing every file, leaving nothing to chance- jumping at shadows.
Jim: What are the reasons?Michael: Initially a grave concern about
the state of the economy but in recent times it is more about letting us know that they are in charge and are setting the agenda. It could be argued that the Australian banks have been the greatest beneficiaries of the GFC. They have come out of it with record profits and increased market dominance.
Jim: There are still economic storm clouds in Europe and America.
Michael: Yes, but recent figures indicate that the European banks are in a better position than previously thought so the pressure is easing.
Jim: Are Australian banks hoarding capital?
Michael: Indications are that the Australian banks panicked and bought in too much “new” funds during the early days of the GFC, at significantly higher margins than they would have normally paid. A combination of the higher margins and a reluctance to lend has left the banks with an overall higher cost of funds which they are more than happy to pass on to borrowers.
Jim: Are the banks lending a lower percentage against the total value of the asset? What is a typical example of lending ratios? 60%? 70%?
Michael: 80% against residential property is standard and has not changed. Many lenders have dropped the gearing against commercial property from 70% to 65%, and some to as low as 60%. Gearing against business has also dropped but the most critical change has been that the banks have shortened the loan terms when funding against business assets (cashflow). What was previously say a 7 year term is now a 3 or 5 year term. This has an enormous impact on the cashflow of the business.
Jim: Are business borrowers being asked to pay a disproportionately higher interest rate than corporate borrowers and home buyers?
Michael: Absolutely! Business borrowers are paying much higher risk margins and fees than they did 2 or 3 years ago. This is largely due to the lack of competition in the business finance market and the
desire of the banks to offset the higher cost of funds brought about by them borrowing too much money at too high a margin during the GFC. It is more politically acceptable to penalise business borrowers rather than home borrowers.
Jim: Who should prepare the business plan or bank submission? The accountant for the buyer? The finance broker?
Michael: The client or their accountant should prepare the business plan. The finance broker should extract the relevant information from the business plan to form the basis of the finance submission. Many lenders want to know that the client has a business plan, but don’t necessarily want to sit down and read it! They only want to focus on the areas that relate to the finance application.
Jim: Does the bank take interest in the due diligence side of a business sale? Are they interested in the buyer’s accountants DD report?
Michael: Yes, but often they will only look at the summary and will be looking for any adverse commentary.
Jim: We note many finance approval letters are subject to a valuation of a property (either the buyer’s house or the freehold of the business where it is a double deal). So is a finance approval letter really a finance approval?
Michael: A bank approval letter is really no more than an indication from the bank that they are prepared to provide funding on certain terms and conditions. We have always taken a view that the finance is not unconditional until the bank has handed over the cheque! Technically the bank could withdraw the approval at any time if the conditions are not met or information comes to the attention of the bank, which at its sole discretion, believes is adverse to its position.
Q&A with GMO Director, Jim Goodwin and Michael Coombes, Director of Southshore Finance.
Media Support Services 1300 557 660
CONTAINER HIRE Ref: 4976 Outstanding 5 day Hire / Sales Business - Perth Location. Enormous potential. Minimum staff. 3 person operation. Excellent expansion potential. 5.5 day operation. Currently run by husband and wife plus 1 employee. Simple sales / hire / storage and modification operations. High profit / sales ratio. 2010 Revenue $1,748,651. Net Profit: $456,000 Listing Price: $1,300,000 Broker: Richard Marr
MANUFACTURING - Engineering Ref: 4894
Established for over 80 years, this profitable industrial manufacturing and service company has continued to expand across Australia and overseas. Sales over $6million per annum and expanding. Latest equipped factory with widely recognised proven products and brand. Run under management. Owners will look at 100% or 50% sale.Net Profit: $847,000 Listing Price: $4,500,000 Broker: Dennis Brede
CHILD CARE CENTRE Ref: 4733 Child Care Centre plus Freehold South of River. Established over 15 years. Licence 73 children. Progressive early childhood education program. Well documented. Owner works 3-4 days. Operations Monday to Friday 6.30 - 6.30 and is positioned to operated under management. Consistently showing very strong profits. Net Profit: $313,000 Listing Price: $1,000,000 Broker: Ross Scott
INDUSTRIAL LAND Ref: 4975
Exceptional Industrial Site in Prime Main Road Location in Perth’s number one industrial suburb. 9050m2 site. Subdividable. Dual road frontages and access. Main road exposure. Ideal for redevelopment. Possible subdivision providing 2 sites each with excellent access. Listing Price: $5,150,000 Broker: Richard Marr
MANUFACTURING - Engineering Ref: 4715 Resources Sector Engineering / Fabrication / Machining. Established since 1994 (16 years) same ownership. Business client base includes large well known Australian Resource Companies. Staff with a vast amount of industry experience. Purpose built premises in an ideal location. Well known brand with an excellent reputation for quality work and service. Manufacture and supply of proprietary equipment and spare parts. Net Profit: $3,337,000 Listing Price: $8,900,000 Broker: Tony Batista
RETAIL - Homewares Ref: 4919 House franchise in top western suburbs location. Australia’s largest independent retailer of quality homeware & giftware products in high traffic location. Well established in top location. Same owner 8 years. Immaculate presentation. Strong cashflow. Long term lease offered. Systemised - simple to run. Exc opportunity. Net Profit: $124,000 Listing Price: $300,000 Broker: Mehra Kazemi
MANUFACTURING - Access Systems Ref: 4853 Established by current owner in 1998 (12 years).Good client base across market areas including commercial, developers, builders, retail and local and state government. Number 1 company in this market. Very well documented. Australia wide market. Manufacture, supply and installation and maintenance of physical security deterrents. Exclusive brand name and limited competition.
Net Profit: $323,000 Listing Price: $950,000 Broker: Garry Manners
RECRUITMENT Ref: 4961
Professional presentation in CBD. Diverse disciplines: professional, white and blue collar. Quality and experienced support staff. Owners available up to 12 months. Unique preferred and exclusive contract arrangements with major organisations and government utilities. Very comprehensive client / candidate database. Placements range per week: 100 to 140. Net Profit: $286,000 Listing Price: $735,000 Broker: Barry Graham
CHILD CARE CENTRE Ref: 4870
South of River Child Care Centre. Licensed for 98 children. Owned by current owners since 2008. Near new, purpose built child care centre located in rapidly growing southern Perth suburb. Net Profit: $247,000 Listing Price: $1,075,000 Broker: Ross Scott
HOSPITALITY - Cafe Ref: 4971
Well established and well respected busy cafe in a perfect location. Warm, friendly and intimate atmosphere. Independent high street cafe. Repeat customers. Amazing coffee. Great food. A wonderful life style business. Net Profit: $181,000 Listing Price: $500,000 Broker: Jim Goodwin
RETAIL - Supermarket Ref: 4979 Strategic IGA Franchised Supermarket Southern Perth Suburb Ideal Retail Location Long Lease Available. A great retail franchised food business. IGA Supermarket. Compact and easy to handle. Turnover $85,000 per week. Immaculate records. Can be run under management or as an owner operator operation. Net Profit: $206,000 Listing Price: $1,275,000 Broker: Lee Gregory
RETAIL - Camping Ref: 4969
Leading established proven franchise. Long established camping, fishing and outdoor store located on the main road to the majority of northern suburbs. Turnover $3.3 million 2010. Directly opposite a local shopping centre. High volumes of passing traffic. Recognised as one of the top stores in this franchise in Perth for over 19 years. Net Profit: $337,000 Listing Price: $1,130,000 Broker: Dennis Brede
MANUFACTURING - Pharmaceuticals Ref: 4938 Manufacturing of pharmaceuticals and related products. Operates under registration and supplies to hospitals and pharmacies nationally. Offers scope to broaden product range. No special background required to operate this business. Funds required $1,700,000.
Net Profit: $397,000 Listing Price: $1,700,000 Broker: Con Mast
COMMERCIAL PROPERTY Ref: RM
Prime Freehold Investment: 8% net return. Securely leased premises in the social educational services sector. Purpose built, modern 775m2 improvements. Site Area 4029m2. Asking $1,625,000. Located 23km south east of CBD. Listing Price: $1,625,000 Broker: Richard Marr
ROAD SAFETY EQUIPMENT Ref: 4803
Long term player in urban infrastructure rollout. Suit hands on person. Longest established of its kind in WA. Highly skilled workforce with very stable history. Supply design, construct and project management to high growth area of public and private spending. Clients include local and State Government and blue chip national organisations. Strong strategic alliances - highly respected. Excellent handover period offered. Opportunity for a private purchaser or institutional buyer.
Net Profit: $420,000 Listing Price: $1,200,000 Broker: Kerry O’Hehir
HOSPITALITY - Cafe Ref: 4951 Australia’s Best Cafe? Consider the turnover, the location, the state of the art fitout and the profits. It could be! Sales in excess of $50,000 per week. 6 days only with no night trading. A bullet proof fitout and the best equipment available. Replacement value over $1 million. A location that guarantees regular customers and passing trade. Detailed financial records. Curious?
Net Profit: $582,000 Listing Price: $1,875,000 Broker: Gary Murphy
WHOLESALE - Hardware/Plumbing Ref: 4931
Supplier of hardware and plumbing products to building industry. Offers full gamut of product from two locations. Long history with excellent market reputation. Owner willing to stay on under new ownership. Sales around $14m. Funds required $2.6m. Net Profit: $577,000 Listing Price: $2,600,000 Broker: Con Mast
METAL FABRICATION Ref: 4959
Highly Profitable Metal Fabrication / Manufacturing Business Located in Major Midwest Growth City. Well established (44 years). Clients include mining, farming, local authority, transport, real estate, marine and government departments. Asking Price includes plant and equipment of $520K and stock of $40K. Net Profit: $641,000 Listing Price: $1,700,000 Broker: Richard Marr
SERVICE - Computers/IT & Phone Ref: 4980 IT, Computer Networking Sales & Service. Hardware, Software & Support - Perth, WA. Estab 1988. Long estab client base specialising in small-med business 5-50 systems. Computer network, hardware, software and services. T/O approaching $1m pa. Well recognised brand within this industry. Well documented and strong systems. Strong forward income. Net Profit: $163,000 Listing Price: $430,000 Broker: Kerry O’Hehir
RETAIL - Tyre Retailer Ref: 4867
Large monopoly tyre retailer, mechanical and hydraulic service business located in WA’s northwest. Freehold available or a new lease to be negotiated to buyers satisfaction. Great opportunity for future growth. Consistently high increasing turnover and profit. 80% under management. Outstanding return on funds invested.Net Profit: $1,225,000 Listing Price: $2,660,000 Broker: Steve Bowes
RETAIL - Food Franchise Ref: 4952
Brilliantly presented takeaway food, bakery and cafe in strategic food court location. Very well systemised operation and huge potential for growth under an owner operator. Very new business which is just starting its profit journey.
Net Profit: $27,000 Listing Price: $350,000 Broker: Jim Goodwin
RETAIL - Post Office Newsagency Ref: 4967 This is a strongly performing Newsagency / Licensed Post Office in an attractive, affluent suburb NOR. The principal features are the powerful LPO licence and Lotterywest, supported by the long-standing newsagency. 1 lotto terminal and 2 LPO terminals. Net Profit: $220,000 Listing Price: $840,000 Broker: Lee Gregory
MANUFACTURER - Concrete Products Ref: 4962
Manufacturer of Prefabricated Concrete Products. Supply, installation to domestic, industrial and commercial sectors. Established 1995. Solid profits from $1.4m turnover. Full financials. Located in Perth Metro area. Owner is retiring, generous training and handover. Plant value in region of $250,000. Long term relationships with commercial sector.Net Profit: $223,000 Listing Price: $675,000 Broker: Tony Batista & Kerry O’Hehir
SERVICE - Boat & Yacht Equipment Ref: 4982 Marine Service - Floating Boat & Jetski Docking System for Marinas for WA, SA & NT. Supply and installation of a range of boat docks. Specialising in drive on - drive off platforms. Boat owners gain greater use of their boats than if on a trailer or stacked in a boat park. Saves time and money. Safe, functional, convenient and versatile. This product is suitable for estuary, river and marinas. Used by state government departments, yacht clubs. Strong sales and margins.
Net Profit: $115,000 Listing Price: $300,000 Broker: Kerry O’Hehir