Shed and Garage business for sale

Posted on : January 6, 2015

How much is your shed and garage business worth on the open market?  You will see three very different shed businesses here offering different value for the potential buyer.  Will an established brand with licensed territory attract a resale premium or will a claimed internet business win out?

Sunshine Sheds & Garages – Ranbuild

  • 2014 Turnover $1,125,627
  • Sunshine Sheds & Garages hold an exclusive Dealers Licence Agreement with Ranbuild as a Reseller.
    Dedicated Licensed Territory: North to Eumundi, South to Burpengary, West to Kingaroy.  
  • Price: $520,000 + sav
It is hard to know the value until the net profit is understood (how much is paid to lease the land etc). Given the net margin might be approximately 20% this means that the Net would be approximately  $220,000.  So the asking price is approximately 2-3 times profit.

Home Internet Shed and Garage Business

  • 2014 Financial year 684K
  • Home-based. You will need an office with computers and internet
  • Gross Profit 101K
  • Price : $POA

This one is very different being a purely at home business and it should have much smaller overheads, that are driven into lower online prices.  Assuming an approximate margin of 20% again, this would value this at ~ $250, 000.

Sheds & Garages – Hunter Area For Sale

  • Freehold included in price (800 sq approx.) -Display Office and 3bdrm home
  • Nets Owner Operator $150,000 PA
  • Price: $320,000

This also follows the exact same valuation formula of approximately 2 x Profits.  This does have a significant freehold attached to it though.

As you can see all very different businesses, without understanding more about the internet business it is very difficult to assess its value.

Would you accept 2 x annual Profits for your shed business?

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How much money can be made in Sheds and Garages?

Posted on : February 8, 2014

This one is always quite hard to find out, until a Shed company goes on the market.

Shed_company_for_sale

 

That is a lot of sheds and a lot of steel.  If you extrapolate the figures here it also tells you the approximate margin they are making.

Note that P.E.B.I.T.A. = Proprietors Earnings Before Interest, Tax & Amortisation

Take this estimate

  • If you say 100k for rent and other expenses
  • $2 million gross sales
  • Owners earnings of $284,000, assuming this is the PEBITA figure.
  •  ~19% margin (depending on how much Gross sales are over $2 million).

 

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