5 DAY FOOD DISTRIBUTION COMPANY MELBOURNE
BUSINESS Detail
BUSINESS DESCRIPTION
Well Established 39 year Specialty Food Distribution Company. This business is a great platform for a first time entrepreneur, excellent turnkey opportunity and could very well be the opportunity of a lifetime for the right buyer. Started in 1976, this is one of the largest quality food distributors that services hotels, restaurants, cafes, bars, delis, grocery stores and food establishments throughout Melbourne. The large selection of wholesale food products along with many exclusive products is rivalled by none, substantial opportunities exist to offer new products, and the riches are in the niches. The company has experienced stable growth and the firm enjoys significant operating margins with documented profitability. The seller’s 1,000 square meter facilities are located in a convenient strategic location with very attractive/flexible lease terms or outright purchase available (not included in the asking price). This business has a competitive advantage by providing historically dependable services to a stable loyal customer base of businesses, some of which have been with the company since inception. In addition, the company could easily expand its service reach – providing natural sales growth opportunities moving forward. The firm would like to carefully transition the Company to a new owner that has the resources and energy to take it to the next level with full training and support, to their network of vendors, sub-distributors, and customers. While there is an existing management team in place, the owner believes that the Company needs a leader to give high-level direction. Furthermore, the Company is the market leader in the area and could easily chip away at the business of some of the poorly managed competitors simply by marketing more aggressively.
1. Number of years trading: 39 years (original founder still working)
2. Lease Terms: 5 years commencing 1/1/15
3. Rental (PA): $70,000 p/a plus GST
4. Turnover (PA): $11 million plus
5. Profitability (%): Gross Margin as at 30/11/15 = 13%-18%
6. Stock holdings: $750,000 – $850,000
7. Wages: $750,000plus
8. Staff: 13 staff
Sales: Office only, no dedicated salesperson – Administration: 3 – Factory & Road: 10
9. Number of Trucks: 7
10. Service area – Melb metro with country run
Don’t let this one wait! For further information about this business, please call Boston Brokers 03 9041 5608 or Martin Mashni 0419 999 773.
