Latessa Business Sales are pleased to bring to the market a unique business.
The opportunity to acquire an established, reputable and profitable commercial and residential architectural joinery
Specialized in apartments and Townhouses – “Hawkfine Furniture”. Established in 1972, Hawkfine Furniture is a leading manufacturer of commercial
joinery products operating in the south of Melbourne. It focuses on large-scale projects working primarily with builders in the construction of apartments and
Townhouses. The company is responsible for the manufacture, assembly and installation of kitchens, bathroom vanities, shaving cabinets, open shelving, walk-in
pantries, linen cupboards, study desks, entertainment units, walk-in and standard sliding robes and more.
It has the capacity to manufacture a range of products from basic white laminate products to high-end veneer and bespoke 2PAC cabinetry.
Through the years, the business has positioned itself as a premium provider of joinery products offering customers a superior experience and project capability.
This has been achieved by:
1. Cultivating long-lasting relationships with builders through transparent communication
2. Nurturing a number of experienced and accredited employees, all of whom are kept updated through induction and training.
3. Offering greater transparency through an itemised quoting system.
4. Providing on-time, on-budget project delivery and keeping pace with shifting client demands to prevent project overruns.
These strategies have ensured the long-term success of the business resulting in ongoing contracts with builders, a steady flow of projects and reduced employee
turnover. It has also resulted in the business having a number of experienced employees with the competencies to meet customer expectations further and assist with the provision of premium products and services which has differentiated the business, giving it a competitive advantage over its competitors. The result: a business with a well-regarded reputation for quality and trust.
This reputation is underpinned by a strong financial performance, with a maturing revenue over the past three years, growing from $2,299,809 in F.Y 2017 to $5,283,782 in F.Y 2018 – reaching $6,913,548 in sales and
a recorded Net Profit Before Income Tax of $361,439 in F.Y 2019.
The business has reconfigured its operations for maximum output and efficiency using a small but agile team, which in turn has improved profitability. It has also implemented several comprehensive policies, procedures and systems enabling the business to be operated optimally. Hawkfine Furniture has a team of committed and highly-skilled employees including four Project Managers. The owners have structured the workflow and
identified the necessary skill sets, and where appropriate, upskilled the team to ensure a cross-functional team that can perform a variety of roles.
As it relates to marketing, the business has marketed its services primarily through its website as well as via its Instagram page which has 2,200 followers. The page is updated regularly showcasing current and
past projects to create brand awareness. The owners envisioned the success of the business by providing excellence in customer service through efficiency and professionalism, guiding customers through the entirety of the process. This strategy has propelled the business and earned it a solid reputation in the industry and a consistent client base.
Overall, this sale provides an excellent opportunity to acquire an established business with efficient systems and processes, excellent relationships with suppliers and clients and superior financial performance.
Ample opportunities exist to further build the business’ online footprint. One of the ways this can be achieved is by implementing a marketing and promotional strategy with a view to driving brand awareness and sales. It is also worth noting that according to IBISWorld the Carpentry and Joinery Timber Manufacturing industry is projected to grow over the next five years, supported by growth in dwelling commencements and increased spending on home renovations. Industry revenue is forecast to increase at an annualized 3.9% over the five years through 2024-25, to reach $3.4 billion. Demand from non-residential building markets is expected to increase over the next five years, particularly for wooden joinery products supplied for internal fit-outs of large-scale commercial building developments, such as offices and hotels.
The current owners have decided not to pursue further growth beyond the $7m revenue mark as they believe this would impede their ability to maintain the high level of service provided to their clients.
Notwithstanding that, there is ample room in the current premises, for expansion and increased production capacity. The current premises at 9 Haymer Court, Braeside, VIC, 3195 is leased from the landlord, Hawkfine Super Fund. It should be noted that the landlord also owns the premises at 10 Haymer Court, Braeside, VIC, 3195 which comprises a 2,000sqm factory that is set on 6,000sqm land with three buildings onsite (two warehouses and an office block).
This is an ideal opportunity for business expansion with a view to drive growth and increase profitability should the new owner choose to do so in the future. The owners have sought to work primarily with established and long-term clients as they have developed a streamlined process with these clients, thus facilitating the seamless delivery of products. In addition to this, the owners have secured primarily contracts that are worth around $500,000, rather than larger contracts, as these tend to be easy to manage and thus more profitable.
This means the company has turned down several clients over the course of the years, being highly selective with its current clients, which also contribute to the overall wellbeing of the business. In addition to this, IBISWorld also predicts over the five years through 2024-25, there will be stronger demand from residential building construction, which is expected to underpin the industry’s performance over the same period. This means the new owner will have the opportunity to make use of underutilized capacity to focus on this area.
