The business has been operating for over 30 years and specialises in the retailing of lighting related products. It currently operates from 3 premises, with the main retail branch (and head office) being located in a prominent position north of the river. The stock level is circa $700,000 and the annual sales are circa $2m. The brand has been built on a reputation of quality, variety, value for money and comprehensive service. The business prides itself on supplying a personal and efficient service, resulting in a large client base of returning customers. Their established reputation in the lighting industry, has gained them exposure to both the general public, builders and electrical contractors. Ideally the Vendors would like to sell the three retail stores as one business if it suited the potential purchaser. If necessary, the main retail store could be sold as a separate stand alone business. The other retail stores are located south of the river and could be closed depending on the purchaser’s circumstances and requirements because the premises leases are flexible.
There are currently experienced staff in place, with the owner working on a part time basis.
The business sells a variety of products for indoor and outdoor use such as LED down lights and spotlights (domestic and commercial), Ceiling light fittings, Outdoor LED garden lights, Ceiling fans (sweep fans and exhaust fans), Pendants from single to multi drops, Floor and table lamps, Light globes, Highbays and Panel lights.
This business is of good scale and could be suitable for a “bolt on” to another retail business aligned to this field who is seeking to obtain further economies of scale and/or leverage. It will probably suit a certain circumstance and could be a very good strategic acquisition for the right purchaser or business group. It could also suit parties with a similar industry background (overseas company/migrant or eastern states company) wanting to commence a business in this field in Western Australia – and establish a base with a sizeable scale and good infrastructure. Alternatively, it could suit an owner operator with a similar industry background. There is another aligned business which is import/wholesale related, that potential purchasers may also be interested in acquiring at the same time.
The Vendors are looking towards retiring, so are able to assist the purchaser with a handover if needed. Accordingly, they are realistic in their expectations.
Asking Price: $700,000 stock (estimate); $130,000 Vehicles, Plant & Equipment; $EOI for Goodwill.
We have an Information Memorandum available which interested parties can have access to after signing a confidentiality form. For further information contact the Zircom Office on (08) 9409 2266 or submit enquiry form.