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WELCOME |
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Steve Smith AREINZ
Managing Director
Impacts of
The Current
Economy
The slowing international economy has impacted on most
New Zealanders to a greater or lesser degree and
most of us have taken stock of our individual
situations. The prevailing circumstances often lead to higher
unemployment and job security issues, and many people
addressing their income options turn to self employment as a way to
control their own destinies. Buying a job is always a realistic
option for self starters.
The new year typically brings both new purchasers and new
listings to the market. This year is no different and, while the
motivations to buy or sell might have changed, the desire to achieve
a result has not. Buyers are looking for reliable cash flow, profits
and job satisfaction, while sellers are looking to realise
capital - possibly to retire, to settle debt or to reinvest.
For those considering buying or selling at this time, the
best thing they can do is to get advice from someone who understands
the market. We have been around for over 21 years - we've been
through three recessions - and we have a good feel for what it all
means to the value of a business, and whether the timing is right
for you.
Under these
conditions, we may see an increase in urgency as personal
circumstances dictate prompt action. This can be on either side of
the agreement and merely reflects a willingness to get the job done.
We understand the dynamics and the realities of the situation and
can assist you to get where you want to be. Most importantly, we know how to successfully negotiate
an agreement to your satisfaction.
If you are keen to buy or sell, and are serious
about success, so are we.
Regards,
Steve Smith AREINZ
MANAGING DIRECTOR
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UNIQUE SERVICE PROVIDER |
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Location
South Auckland
A B2B manufacturing business in
a busy commercial location which would suit an incoming owner
with a flair for marketing, and wants a business with a regular,
steady clientele with the opportunity to build on this company’s
reputation for quality and dependability.
Overview
Owned and
operated by the vendors since 1983, the business has been able
to maintain a reputation for providing a high level of services,
meeting deadlines, innovation in introducing new processes and
materials.
Operations
The company has progressively installed leading edge equipment
to enable them to grow the business and to meet the demands and
competitive forces of the new millennium. Total plant and
equipment is
valued at over $1.7million.
Strength of the Business:
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Strong brand
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Top, loyal,
long term staff
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Location
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Documented
Operating Systems
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Diverse
range of reliable, long term customers
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Equipment
and premises
Growth
Opportunities
1. The
addition of ambitious, professional sales-people to market products
direct to customers in the underdeveloped markets out of Greater
Auckland would increase sales directly. This could be in the form of
commissioned agents selling in specific areas or by direct
employment of Sales Reps.
2. Adding complementary services to the existing
operation.
3.
Leveraging off existing expertise and technology into new areas.
Factors
Limiting Growth
Marketing has been identified as
a major weakness of the business and the Vendors feel that there
is plenty of opportunity for a skilled sales and marketing
person to promote the business’s services.
Customers
The business is currently
providing services to customers within the Auckland region.
95% of the work originates in Auckland, although work does come
from Wellington, Whangarei and Christchurch. The diversity
of customers is the strength of the business as there is no
reliance on any single customer for sales. The risk is
spread across a variety of customers.
Financials
Complete P & L accounts and
budget forecasts are available. Projected Cash surplus
is $1,270,857 for Year end mach 2010.
Staff
While most staff work a 40 hour
week, the team is flexible and versatile in terms of working
hours and shift times. The low staff turnover greatly
contributes to the efficiency and effectiveness of the business
Vendors' Role
The Vendors estimate that they work a total of 40
hours per week between them. Their roles include the day to day
handling of all issues that arise: i.e. quoting, assisting the
factory manager in scheduling, all accounts, wages and customer
liaison, forward planning, purchasing and the setting of targets
etc.
Premises
The business is well located
with easy access and plenty of parking in commercial premises in
South Auckland. The premises are fitted out to a high
standard with ample space for production, sorting and job
management. The spacious premises with large roller door,
drive in access, means the fork lift truck can unload pallets of
stock in all weather conditions without fear of damage or
disruption. The interior offices are ideally suited for
the business’s usage and have a separate space for offices,
equipment, reception, staff-room and services.
Total Price:
$3,700,000
Contact
Peter Nola 09 630 1600 ,
021 507 313
Ref: 21028
Click here to learn more
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IS
YOUR BUSINESS READY FOR SALE? |
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Richie Lowe
AREINZ
We are often asked by potential clients “Is my business
ready for sale?” and, if not, “What things should I focus on to
position the business to attain the highest possible sale price?”
"Ready for sale” does not mean on the market at that time. It
simply means that if a favourable opportunity arose, or if
circumstances necessitated a sale, then the business would be ready and
would have
the characteristics for which a rational buyer would pay a reasonable
(or better) price.
A couple of things to focus on;
Documentation -
ensure all leases, employment contacts, supplier agreements are
current, secure and available.
Financials - make sure balance
sheets and profit and loss statements are easily understood and
relate specifically to the business being sold. If there are 'other'
trading activities on the financial statements, have your accountant
prepare recast accounts.
Performance - is your business showing growth? Is there any history
of improving performance or sustainability at or above industry
norms? Do what you can to improve sales, margins, costs etc.
Being “ready for sale” means making your business
attractive to an outside investor and also means that you are
prepared for any eventuality outside your control. For ideas on
practical steps to take, please contact me directly.
Richie
Lowe is General Manager of Affiliated Business Consultants Ltd (ABC)
and Immediate Past Chairman of the Business Brokers Division of the
Real Estate Institute of New Zealand. |
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