Opportunity
Own and operate an Australian Industrial Barrier and Fencing Solutions Business. It is a well-established with a robust customer base across all sectors of the construction and event industries.
Overview
A well-established leader in the temporary fencing industry, serving a broad customer base across various sectors, including construction and events. Their reputation is built on delivering exceptional customer service, ensuring safety, and providing high-quality products and services. Many of their clients have been with them for over 15 years, reflecting the trust and satisfaction they have in Fencing Solutions offerings. They have a strong market cap, and the repeat clientele generate an annual EBITDA of approx. $2 Million. The business is protected by stringent safety standards, and high-quality products valued at $8 Million in ready-for-hire/sale inventory, which has been built with key partnerships.
The Market
Current market cap covers customers in:
New South Wales
- Sydney
- Wollongong
- Nowra
- Orange
- Central Coast
- Newcastle
Queensland: Brisbane and Sunshine Coast
Gold Coast, Northern Rivers, Toowoomba
Customers include Construction Companies and Home Builders, large-scale Event Venues and organisers
The Fencing Solution Business also augments existing fencing and industrial equipment companies
With the options for both Hire and Sale of temporary fencing solutions the Fencing Solutions Business covers all scenarios for the potential customer. Most of the competition only have a hire option or sale option only. With the Fencing Solutions
Business covering both options we can also offer the sale option to be supplied and installed.
The Future
- Expansion of Service Offerings: The company plans to expand beyond traditional temporary fencing by offering comprehensive event solutions, including crowd control, VIP areas, and security perimeters. This initiative is expected to increase revenue by 20% within the first year, with implementation set for the next 3-6 months.
- Investing in digital marketing strategies: Improving on SEO, social media advertising, and online campaigns, will enhance the company’s online visibility and attract a wider audience. This initiative is expected to increase revenue by 15% within the first year, with implementation set for the next 3-6 months.
- Particularly Queensland and Victoria, will double the revenue within the next 2-3 years. This involves setting up new branches, targeted marketing campaigns, and establishing a presence in high-demand areas. Implementation is planned for the next 6-12 months.
Key Takeaways and considerations for Investors:
- EBITDA Value: approx. $1.6 Million Annual
The Top 10 NSW customers account for 25% of revenue (FY24) with no single customer contribution more than 8% of the total revenue in NSW.
- Inventory Value: approx. $8 Million
- Old stock can still earn same amount of revenue as new stock.
- Customers replace lost, stolen, and damaged stock which assists in keeping fleet at same quantities and good condition. For example, if customer damages panel that is 10 years old, we charge them for a completely new panel at a high replacement cost rate
- All engineered systems to meet Australia standard Full procedure and systems manuals for running the business from Sales, Installation, operations, and finance
- Current Owner and key members are prepared to stay on to assist with the handover and training
