A business which provides large, teepee-style waterproof tents for events is for sale.
TopKata is on the market for $690,000, with $300,000 of that as tangible assets and $390,000 as intangible assets.
Broker Lynda Smyth, of LINK Business Broking, says this high-margin business is in a profitable niche sector and has significant expansion opportunities.
Based in the Waikato, the business provides its hire service to events all over the North Island.
The 350sq m warehouse is in Te Rapa, Hamilton, but the business can be operated from anywhere in the North Island with good road links.
Smyth says when the owners of TopKata arrived home from travelling the world to get married they wanted their wedding to be on the family farm in the large, Nordic-style teepee tents they had seen in Europe.
"They had experienced wonderful atmosphere these create, but they were not available in New Zealand.
"As a result they set up TopKata Ltd so other people could have a unique setting for their special event."
The business operates in the upper end of the events market and hires out the tents as a more interesting alternative to the usual marquee offerings, says Smyth.
The tents can be linked together for large functions.
Since the owners started the business in 2013 they have steadily grown its operations, scope and profitability, says Smyth.
"TopKata has consolidated its positon as a market leader in its sector over the past few years."
Their exclusive product provides an elite option for all types of events. "Each teepee can comfortably seat 80 guests but they can also be joined together to seat up to 500 people, creating a totally unique space and atmosphere.
"Their hire range includes flooring, specialist lighting, Scandinavian-style wooden tables, benches and more."
The company buys the teepees from their European supplier. The business has a range of 12, with different design and layout options.
The sale of the business includes ancillary equipment such as flooring and furniture, as well as vehicles, trailers, and a marketing programme and customer database.
"The company is well-established and well-resourced with a strong base and excellent profile," says Smyth.
"In addition to the upmarket weddings and family events, they do a lot of corporate events and have about 20 corporate customers. They e also supply equipment for festivals."
The business has two experienced staff who manage it with minimal input from the owner, says Smyth. One manages all the operational aspects of the events and one manages the admin, bookings and client contact.
"These two managers are flexible in their hours and wish to stay on with the business. There are two crews, each with a crew chief, and TopKata has built up a core team of staff members who are experienced and come back every year.
"Some experienced crew come over from the United Kingdom each summer as it is their off-season over there."
Marketing support has been mainly Facebook, Instagram and Together Journal.
"Both Together Journal and Bride and Groom magazine have featured weddings using their teepees, which has provided excellent PR coverage for the business.
"There has also been publicity for Topkata in newspapers and online blogs. "As a result they are fairly well-known in events circles."
Smyth says there is a lot of potential for expansion with the purchase of more teepees and the addition of another depot.
"The reason the owners are selling is that they are now busy with their farm and a young family and feel that they have not been able to give the business the attention it deserves."