After 20 years of building this multi award winning business and the industry, the Founder of Salamanca has listed the business for sale through Eaton Square.
HIGH MARGIN CONSTRUCTION BUSINESS | DESIGN IP | GOVERNMENT CLIENTS | LOCAL GOVERNMENT PLANNING & REGULATIONS EXPERTISE
The business has enjoyed many years of profitable growth and is a market leader with a market dominant position in Australia. It also has significant contracts through Asia and the Middle East underpinned by a first-class international reputation built on a wealth of knowledge and experience and internally developed IP where innovation is in its DNA. Its portfolio includes the Design and Project Management of the world’s largest skate park in Asia at the time of construction and design & build contract of the first large scale professional skate part in the Middle East in 2015 (see actual picture above).
The industry is expected to enjoy significant growth on the back of innovation and product development that has evolved from skate parks to youth precincts, and further evidenced by the successful inclusion of skateboarding at the Tokyo Olympics in 2021 for the first time. Growth projections are supported by Government infrastructure spending and incentives. Government clients ensure low debtor risk.
Projects undertaken by Salamanca have grown from an average contract value of $500k-$750k and large contract value of $1m-$1.5m in 2010 to an average contract value of $1m-$2m and large contract value of $4m-$5m in 2022.
A current year recently completed project incorporated skate, parkour, outdoor chess, active and passive recreation, viewing platforms, bouldering and outdoor DJ booths…on 2,500 sqm.
Salamanca has enjoyed significant YOY growth during the COVID era despite project delays (customer decision making and closed borders), supply chain challenges, materials inflation and labour shortages. Given its global operations, Salamanca staff have worked remotely since before 2020.
Salamanca is headquartered in Australia.
“How California skateboarding revolutionized global culture. This new Olympic sport went from fringe hobby to a worldwide influence on cityscapes and culture.” – National Geographic May 2020 Edition.
FINANCIALS
GROWTH OPPORTUNITIES
Significant growth potential from:
- + FY23 contracted work in hand @ March 22 – $8.6m
- Re-opening of international borders to underpin international growth
- Long standing International “partnerships”
- At full capacity till September 22. Recommence response to Tenders from July 22
- Growth in project scale attracting a wider audience demographic
- Industry growth in all key markets
- Covid recovery created a “vacuum” in international markets
- Responding to the plethora of enquiries
- Active marketing and conference attendance in key markets
PROCESS
The Founder/owner is selling 100% of the shares in the company and will be available to assist the transition to the new owners. The proposed timeline is:
- Interested parties express an interest by 29 April 2022
- Information pack – available after signed NDA by end of May 2022
- Management meetings – June 2022
- Indicative Offers due – 30 June 2022
- Target completion – August 2022
