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Well Established And Profitable Fastener Distribution Business For Sale

Eastern Cape, South Africa
Asking Price:
R1.5M - R3M Furniture / Fixtures included
Sales Revenue:
R3,100,000
Cash Flow:
R500,000

This is a great opportunity to buy a well-established and profitable fastener distribution business. Established for 8 years, this company is a distributor of many fastener-types used for various applications.

Background

With consecutive annual sales and profit growth, this business has benefited by offering a large diversified fastener product line and servicing a diverse, long-standing customer base across a variety of sectors.

Fasteners are required almost everywhere and are a vital component in most industries. This company distributes nails, screws, bolts, nuts, washers, and numerous other fasteners including stainless steel fasteners, used in many industries.

They are also a major supplier of fasteners to a long-standing customer manufacturing and offering a unique utility vehicle locking fastener system. They also supply niche products to decking companies.

Opportunity

This company is an ideal acquisition opportunity for an energetic buyer looking to leverage the company's solid track record, reputation and customer base to exploit the growing niche for high quality service and competitive pricing in the fastener industry.

Due to their strong gross margins, absorbing the business into another organisation will eliminate most of the current overheads and result in substantially higher cash flow than currently reported.

Value drivers

* Turn-key Operation – Can be operated out of the existing location immediately or merged into another company.

* Increasing sales and gross margins year-over-year;

* Sales distributed among numerous customers (low customer concentration risk);

* Diverse supplier base; (Sales spread out among many products (low product concentration risk);

* Growing percentage of on-site customer visits could be maximised by increasing product range and utilising ground floor retail space in the current building.

This is a great opportunity for someone who wants to buy a profitable distribution business with tremendous upside potential. A new owner could continue to grow the business by expanding diversified customer base further, adding additional internal sales staff and offering new products to existing customers and existing products to new customers.

Transaction summary

* Seller retiring
* 100% sale of sellers members interest
* Seller continued assistance (3 months) available under agreed-upon terms.
* Purchase of building optional (from where the business operates)

Property Information

Real Estate:

Lease

Leasehold Rent:

R78,000 per annum

Location:

Well positioned and maintained premises close to major arterial routes

Premises Details:

Large storage space with adequate office space.

Business Operation

Expansion Potential:

This company is an ideal acquisition opportunity for an energetic buyer looking to leverage the company's track record, reputation and customer base to exploit the growing niche for high quality service and competitive pricing in the fastener industry.

Competition / Market:

Most competitors have closed. A few national outlets exist.

Reasons for selling:

Both owners at retirement age

Trading hours:

Monday to Friday 8am to 5pm

Employees:
3
Years established:
8

Other Information

Support & training:

Seller continued assistance (3 months) available under agreed-upon terms.

Furniture / Fixtures value:
R70,000 - included in the asking price
Inventory / Stock value:
R520,000
Relocatable:
This business can be relocated.

Contact Information

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