Firm has designs on a bright future

An Auckland-based structural design engineering business that has been in the trade for over 40 years is on the market.

The company specialises in commercial and industrial property development as well as recreational and residential construction projects.

The turn-key business opportunity is enjoying consistent revenue and profitability.

Link business broker Serdar Kabul, who has an engineering degree and has worked with many engineering and service businesses, is marketing the opportunity.

“The construction industry in New Zealand continues to have strong demand and growth.

“Considering every construction project both commercial and residential are required to have a structural plan, this business offers a secure future.

“The continued high demand for residential building activity has put the sector in good stead to recover from the impacts of the Covid-19 pandemic,” Kabul says.

There was a record number of annual new dwelling consents, with 49,773 consented for the February 2022 year, according to Ministry of Business, Innovation and Employment statistics. This was 25 per cent more than the February 2021 year.

Kabul said the long-established structural design engineering business has many loyal clients, including a number of market-leading, blue-chip companies, with some relationships spanning many years.

The business currently works with some large projects such as a 5000sq m development plan.

Its average revenue is $1 million with an EBPITDA of $350,000.

Both the revenue and profit are consistent, and there is potential for growth with a strategic new owner.

“The market position of this business is very strong with significant barriers to entry for competitors.

“Customer demand could support a further scaling up of operations and opportunities clearly exist for a new owner to grow the business further.

“The majority of work is received from residential building projects as well as some commercial projects. Forecasts in the National Construction Pipeline Report 2021 estimated an increase in building and construction activity through to the end of in 2026.”

The nationwide housing shortage continues to be an issue for home-buyers.

“Considering Auckland is expanding, especially further south, makes this business an attractive acquisition opportunity for an existing operator within the industry,” Kabul says.

“This successful business has been trading for many years and has become one of the ‘go-to’ operators in the sector.”

He adds that it has a highly experienced and skilled staff with the ability to complete major projects.

“It is an excellent opportunity for either a hands-off investor looking for an established managed business or an owner-operator engineer who enjoys being active in the business.

“It benefits from a longstanding and highly experienced team and, while it is a retirement sale, the current owner is happy to stay on for a long period of time.

“This gives the new business owner a chance to get on board with a minimal risk and learn the business through the transition period where the current vendor is still actively running the business,” Kabul said.

Contact: Serdar Kabul, ph 021 188 6144, [email protected]

— Article supplied by Link