Health and Beauty Investment Opportunity – For Sale by Expressions of Interest

Health & Beauty Business

$2,500,000 + SAV

Overview

This business is a well-known Australian-owned cosmetics and toiletries wholesaler. The business services a network of clients and customers throughout Australia in professional skin care establishments such as beauty salons, medi spas and cosmetic clinics. 

This transaction provides a strong opportunity for investors to operate a highly successful business that has generated solid returns YoY. The nature of the business also provides lifestyle benefits by offering the opportunity for investors to travel both nationally and internationally.

Individuals, investment managers and businesses with a developed interest for health and beauty industries and the passion to travel are highly encouraged to consider this opportunity.

Quick facts

  • Well-known national established health and beauty business 
  • Operates within a counter cyclical industry which is supported by a broad range of markets.
  • Business generated owner returns in excess of ~$900,000 over FY2016-FY2017 and demonstrates a strong capability for further growth potential. 
  • The ‘attractive’ global cosmetics industry is anticipated to grow at a compound annual growth rate of 7.14% over 2018-2023 reaching a market value of close to $1 Trillion US.
  • Annual earnings growth of 21% YoY FY2015 – FY2017 (average compounded rate) 
  • Services a diversified customer base of approximately 200-250 regular clients nationwide.
    *Expenses declining by approximately 14% YoY FY2015 – FY2017

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Business Opportunity

This business presents a unique investment opportunity for investors with a developed interest in the health and beauty sector. Operational since 1996, this business has experienced surging growth within its market and has developed a strong reputation nationwide as a leading cosmetics and toiletries wholesaler.

JPAbusiness has been engaged by the Vendor to identify interested parties with an appetite for investments offering superior returns including:

  • Investors with a keen interest in the health and beauty sector
  • Businesses and investors already operating within health & beauty, in search of strategic investments or expansion/bolt-on opportunities
  • Strategic investors looking to penetrate the health & beauty sector and benefit from strong growth opportunities
  • Individuals with a passion for a business lifestyle and the opportunity for frequent domestic international travel
  • Individuals with a background in health and beauty ready to apply their expertise and skills in a well-developed business

This investment would also suit investors without these characteristics as the business operates with relative simplicity which can be learned during the transaction transition.

If one of these sounds like you or someone you know then this opportunity is not to be missed

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Financial Performance

  • The business has generated solid returns for the business and owner in excess of $900,000 in the last two years, subject to purchaser verification.
  • Business has increased overall operating efficiency with expenses declining at a compound annual ~14% from FY2015 – FY2017
  • Earnings before taxes has grown at a compound annual rate of 21% over FY2015 – FY2017).

Customers & Markets

The business has an extensive network of clients and customers throughout Australia in professional skin care establishments such as beauty salons, medi spas and cosmetic clinics.

Possibilities to expand the business into New Zealand are endless as the business holds exclusive supply/distribution agreements for its primary product offering for both Australia and New Zealand. The successes achieved in Australia may also be leveraged and utilised when penetrating this new market.

Business Location

The business is located in one of Australia’s larger capital cities with a national footprint.

The site consists of ~400m2 of office space and a 400m2 warehouse. The premises comprises all characteristics required to operate key functions of the business effectively, without the need for a high profile or heavy traffic location which results in low-moderate building operating costs.

Point of Difference

This business is well positioned in this niche target market. Key competitive advantages include:

  • Exclusive national supply agreements across Australia and New Zealand
  • Loyal and repetitive customer base
  •  Exclusive access to a patented product offering that cannot be duplicated quickly, providing barrier against competitors

People

The business employs a highly effective team of staff spread across NSW, VIC, QLD and WA. Employees include the Owner (as Managing Director) and 8 other staff members across sales, training, finance, administration and warehouse roles.

Staff are capable, independent and autonomously work to deliver value and results for the business.

Expressions of Interest

We are seeking Expressions of Interest for the business as a going concern, including goodwill, related assets and operational plant and equipment, by 30 September 2018. Interested parties should contact JPAbusiness for more information, including a detailed Information Memorandum relating to the business.

The asking price for the going concern business and operational plant and equipment is $2,500,000 plus GST (if applicable) plus Stock at Value (S.A.V).

Enquire About this Business Now

Quick Facts

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  • Well-known national established health and beauty business

  • Operates within a counter cyclical industry which is supported by a broad range of markets

  • Business generated owner returns in excess of ~$900,000 over FY2016-FY2017 and demonstrates a strong capability for further growth potential

  • The ‘attractive’ global cosmetics industry is anticipated to grow at a compound annual growth rate of 7.14% over 2018-2023 reaching a market value of close to $1 Trillion US

  • Annual earnings growth of 21% YoY FY2015 – FY2017 (average compounded rate)

  • Services a diversified customer base of approximately 200-250 regular clients nationwide

  • Expenses declining by approximately 14% YoY FY2015 – FY2017


Important Information for Prospective Purchasers:

All information in this document is of a general nature only and not exhaustive. Interested parties should conduct their own due diligence and feasibility assessments. The Vendor of Health & Beauty Business, and advisers, JPAbusiness, are not liable for any loss or damages associated with reliance on this information or the Expressions of Interest process.

JPAbusiness Pty Ltd operating under Principal Business Agents License No. 1710192

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