Invest in your own industry with a mining services business
Want to invest in your own industry? A growing trend is emerging among senior mining workers who quit their day job to buy a mining services business. It allows them to take the reins of their own company, and add value through their own expertise. Here, the directors of Mining Business, a website specialising in mining-related companies, explain how it all works...
Mining Business (www.MiningBusiness.com.au) is a division of WA-based Ascend Business Brokers, whose directors have more than three decades' of combined experience in finance and business sales across Australia.
The website matches prospective new business owners with mining services businesses - specifically those which suit their skill set within the industry.
Most of the businesses are worth $1m to $15m in value, and some of the businesses currently for sale include:
- heavy equipment hire
- underground equipment hire and services
- fabrication services to mining
- geotechnical and surveying
- transport businesses relating to mining
- supply businesses to mining
In general, buyers are industry employees with specific experience in the type of business being offered. Senior managers and mining company personnel see the value in operating their own businesses - it gives them greater control over their professional lives.
Here's a great example ...
In 2012, a WA-based mining site supervisor (specialising in underground construction supervision) joined forces with two others to buy out an existing underground services company providing construction. The small group of three investors successfully financed and purchased a small $3m underground business and have since on-sold it to a large public company for a good profit. The original investor has since been contracted to work for the new, larger company owners. That's just one example of a win/win in buying a mining related business.
For more information, visit www.MiningBusiness.com.au.