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Queensland based distributor for sale!

The global manufacturing business has a worldwide network of subsidiaries, dealers and distributors located in over 40 countries, including Australia.

The business which is for sale is a family owned distributor based in Rockhampton, servicing Central, Northern and Western Queensland. They service part of their territory by using sub agents and have parts and service agreements in place with businesses in the surrounding areas.

The current Distributor Agreement which was entered into in June 2021 for an initial term of 3 years, has renewal terms of another 3 years. The agreement stipulates an annual sales target which has always been comfortably exceeded.

In FY21, annual revenue was $1.7m+, and the business has a budgeted FY22 revenue target of $2m+.

The products and systems the business sells optimise truck and machine performance and are used all over the world, in a wide range of industries. This distributor mainly operates in the following segments:

1. Transport and Logistics
2. Port equipment
3. Earthmoving and construction
4. Mining
5. Forestry
6. Agricultural

The business enjoys a trusted reputation and an established customer list. It is not overly reliant on any individual customer and has a low level of customer concentration risk.

It is a business with a diversified customer base spread across multiple industry sectors. Their largest client generated less than 7% of total revenue and their top 10 customers generated ~33% of total revenue.

The business have an edge on their competitors by having products available to them to cover both entry and premium level systems that meet all customer budgets.

The purchase price of $2m includes ~$250k of plant and equipment.

History

The current owners have been successfully running the business since 2004.

Price $2,000,000
Business Type Business
Business ID 21
Category Industrial/Manufacturing

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Mike Guyomar

0405 090 165
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