-Well known, industry leading commercial furniture services company. The director of the comany has been in the industry since 2005 and as a result has a long list of strong relationships.
-Since it’s inception in 2016 the company’s primary focus has been around the logistics, installation and maintenance of office furniture and joinery for commercial clients. COVID forced a short diversification into manufacturing(desk tops, cabinets, etc) but this aspect of this business has mostly been wound up(there are still some manufacturing related software assets – listed below)
-Regarding only the services side of the business(transport, installation, maintenance) – the company grew very fast year-on-year from it’s inception and right through until the Victorian COVID lockdowns. While the industry had mostly recovered by 2023, COVID was a major hurdle and the director of the company found himself too worn out to give the business his best.
-Expected post-COVID revenue is between $1.5m-$2m with net margins of 10-15%.
-The business has a fantastic external bookkeeper and accountant who know the business well.
-2017 Mitsubishi Canter Furniture Truck – 550,000kms – Can be Driven on a Car Licence and Full-size Hydraulic Tailgate
-2017 Renault Trafic LWB van- 103kw – 6sp manual – 180,000kms
-Ample manual handling equipment – aframes, pallet jacks, dollies, blankets, etc.
-Over $10k of hand and power tools – impact drivers, drop saws, cordless poer tools, etc.
-Customized cloud-based management software with Xero accounting integration – YEARS of job data, costs, photos, etc.
-Oracle Netsuite ERP licence – implementation is incomplete but the bulk of the functionality is in place.
-Well trafficked website with a highly sought after 3 letter web domain – eg. www.xxx.com.au
-100’s of high value industry relationships that the owner is happy to share.
-Design Software – 1x Cabinet Vision 2021 Licence and 1x Microvellum Licence – nearly $100k worth of CAD design software.
Reason for Sale
-Excessive debt burden(debt obligations will be handled by the current owner)
-Work-life balance – The director has two young children.
Potential Business Structure
-This business has been built to operate at any scale:
-Owner Operator – Operate a small crew of 4-6 on-site and transport staff including yourself – annual turnover of $600k-$1m with massive profit margins and plenty of time off.
-Owner Manager – Work from home, on the raad, or both, managing a larger crew of 6-12 on-site and transport staff – annual turnover $1m-$1.8m with decent profit margins and a reasonable work-life balance.
-Outsourced Operations – Increase revenue and keep costs low by outsourcing the bulk of operations to an existing pool of contractors.
-Scale Nationally – The existing management software was designed with national operations in mind. Much of the existing customer base operate Australia-wide so the sales channels are basically already in place.