business for sale

Well established outdoor media business specialising in mobile media and vehicle wraps

Businesses for Sale

Sale Memorandum

Well established outdoor media business specialising in mobile media and vehicle wraps


Ref.CA034

Location Relocatable

Asking Price £390,000

Confidential offered for sale


Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA
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Asking price includes:

Turnover to end September 2005 £390,000
Gross profits of £263,000
On-going partnership agreements with two of the largest fleet operators in the UK
Impeccable reputation that generates high volume repeat business
Tracking system for media planning and campaign costings
One stop shop – media planning and production
Huge opportunities and expansion capabilities
A friendly professional service
On-going growth pattern
Established client base
Re-locatable business
Training and handover
Advertising
Goodwill
Website

Business profile:

Well established, this business was one of the first in the UK to launch truck side advertising. Six years on this business continues to lead the way having brought this innovative form of outdoor media into the mainstream – and as one of just a few companies active in this sector, this business is set to grow even stronger with truck operators looking at ever more innovative ways to offset the increasing costs of diesel.
Particularly effective for product or campaign launches, the truck side media managed by this business has been involved in some of the biggest advertising pushes in recent years including the launch of a UK top selling album, the launch of a Dream Works animated feature film as well as on-going campaigns for many household names including a major High Street Bank, hotel chain and car hire company.
Operating in one of the UK’s fastest growing media markets, this business offers advertisers the opportunity to reach target audiences that are difficult to approach using more traditional media. Operating nationally this business offers a very cost effective alternative to radio and bus backs and sides (both media only generally available on a local basis) as well as roadside posters. Campaigns of any duration above one month can be accommodated – with this business offering its advertising Clients an all-inclusive package of planning and production. There is no limitation on the volume or type of vehicles that can be used in a campaign.
To assist its Client advertisers and the agency media planners operating on their behalf, this business has developed its own tracking system providing excellent accountability and costings for all campaigns as well as a whole raft of monthly statistics to assist Clients in monitoring the effectiveness of their campaigns by knowing exactly where the vehicles carrying their advertising have been.
This well-established business has a proven track record of success, a superb reputation and a growing, loyal customer base of both advertisers and ‘media owners’. Turnover for the financial year to the end of September 2005 was £379,000 up nearly 80% on the previous year which in itself was more than double the turnover of the year before that. Gross margins are consistently in the region of 70% clearly demonstrating that this is a major player at the forefront of a very fast growing sector.

Key strengths:

The market for the services of this business – both from a media (truck) owner’s and advertiser’s point of view is set to grow significantly over the next few years as more and more fleet owner’s faced with spiralling diesel costs appreciate the incomes that can be generated and make their own trucks available and advertiser’s realise the cost effectiveness of this kind of media. Significantly more and more of the turnover of this business is being generated by repeat advertisers.
This business currently operates from a home office environment and with only two employees has limited overheads. With low production costs for the vehicle ads, appropriately priced campaigns are very profitable indeed. Eminently re-locatable and easily incorporated within an existing media sales department, the vast majority of the turnover of this business could be added almost directly to a new Owner’s bottom line.
With advertising expenditure subject to ever increasing scrutiny and accountability this business has developed an excellent tracking package enabling advertisers to consider the merits of this kind of media alongside that of all the other mainstream routes to market, such as TV, radio, press etc. On-going access to this kind of data will further reinforce the mainstream position truck side advertising now has within the media planner’s schedules.

Key opportunities:
This business has recently signed partnership agreements with two companies operating probably the largest fleets of trucks on Britain’s roads today, one Client of which operates a fleet of 640 vehicles – 20% of which are driving around Central London at any one time. Keen to maximise their own returns the Client is even facilitating introductions to its Client database to maximise uptake. With the selling of these spaces only commencing very recently the impact these opportunities represent for this business have yet to show in its financial performance. The employment of further sales staff and the possible introduction of an in-house design team could ultimately generate a larger turnover.
Not only does this represent a superb opportunity to significantly increase the turnover and profitability of this business by maximising the utilisation of this media by potential advertisers but also an excellent platform on which to build further by approaching other operators with similar sized if not larger fleets. It is estimated that the revenue available from just one of these two agreements could easily reach £1m per annum.
Premises:

This business is currently run from a home/office environment. Premises are not included as part of the sale.
Advertising and Marketing:

Most of the business's turnover is generated through the current existing satisfied client base and word of mouth recommendation. The company has used limited advertising in the past, gathering market intelligence on potential Clients and advertisers via the Internet and approaching directly.
The business also has a well designed and easy to navigate web presence that performs well in all of the major search engines for all the relevant search topics.
Financial profile:
The business is offered for sale on a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The turnover for the year to end September 2005 was £379,000, generating a gross profit of £263,000.
Employees:

The Managing Director/Owner is responsible for the day-to-day operation of the business supported by two telesales operatives working on a part-time basis.
Support and Training:

Our clients are happy to provide a full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners.
Reason for Sale:
The Owner wishes to pursue other business interests.
Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006

Next steps

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