business for sale

Maintenance Contracts

Sale Memorandum

Maintenance Contracts for Domestic Boilers Company


Ref.IA012

Location Wales, South Wales

Asking Price £130,000

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

Work in progress, material stocks, tools and machinery
Maintenance contracts with recurring revenue of £50,000
Substantial number of annual maintenance contracts.
Sales which growing year on year
Established client/customer base
Excellent supplier partnerships
Superb opportunity to grow
Complete Turnkey Operation
Licenses & accreditations
Established client base
Re locatable Business
Training and handover
Excellent reputation
Good profit margins
Goodwill

Business profile:

This is a unique opportunity to acquire a business with a captive market for the maintenance of household domestic boilers. This Corgi Registered business was established in 1980 and specialised in the installation and maintenance of domestic central heating, cookers, water heaters and gas fires.
Over recent years it has refined its activities to the market and sale of maintenance contracts for domestic heating boilers. Its main focus of attention is Fagor Boilers and it is the only company in the UK capable of offering this service to Fagor customers.
The company also maintains other brands of boilers including AWB.

What it does

There are three thousand five hundred Fagor domestic boilers in South Wales alone. These are all under five years old and the company has the ability to service all these owners and to sell them an on going service package which is unavailable anywhere else in the UK.

Location

The business is presently located in South Wales at the private residence of the owner. It is therefore relocatable.

Clients

The business has circa three hundred and fifty active clients.

Key strengths

The proprietor is the only heating engineer in the South Wales offering maintenance contracts and who has the experience and technical expertise to service these specific boilers. The relationship with the key franchise holder for these boilers is superb with a free flow of information on the majority of installations carried out. Spares are easily available at short notice making the cost of carrying a large stock of spares unnecessary
Key opportunities.

Domestic heating engineers with an established business will find this a superb opportunity to add value to their business without incurring a significant increase in overhead. The positive cash flow of the company makes the acquisition even more attractive.
There is a huge potential to market the entire database of owners of these boilers and to capture a huge number of on going service contracts giving perfect cash flow forecasts, guaranteed revenue streams and known profitability.
A straight forward canvassing strategy would grow the business at a controlled rate for the foreseeable future.

Technology
No specific technology is required to run this operation

Competition:
Fagor boilers are not a gas board listed appliance and therefore they are unable to offer a maintenance contract. In short there is no competition.


Management and staff
The business is owned and run by the proprietor.

Advertising and marketing

As a boiler comes up to two years old an information card is sent out to the owner advising them that the manufacturers warranty is about to expire and offering them a twelve month maintenance contract payable by cheque or standing order. There is presently no phone call follow up to that card notification.
Financial profile:
All financial information will be made available under the auspices of Turner Butler. Turnover is circa £50,000 with gross profit being in the region of seventy percent.
Support and training:

There will be a full training programme and handover for the purchaser. The existing owner is very keen to see his business continue to thrive and will be available to make sure that every technical aspect of the handover is attended to in great detail. He will also be willing to make himself available for advise for a period to be agreed as part of the sale process.
Reason for sale:

The owner has decided to retire.
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

If you are interested in finding out more about this business please:

  1. Click here to generate the Confidentiality agreement with your details
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  3. Sign the confidentiality agreement and fax each page of the document to 0870 432 3611
  4. We will contact you and put you in touch with the seller of the business.

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