business for sale

Specialist Suspended Ceiling Cleaning Service

Businesses for Sale

Sale Memorandum

Specialist Suspended Ceiling Cleaning Service


Ref.GB062

Location London,North

Asking Price £ 200,000

Confidential offered for sale

Asking price includes:

Turnover circa £160,000
Very high gross & net profits
Long established
Blue Chip client list
Low overheads
Direct & Sub-Contract work
Agency Labour
Goodwill
Handover & Training
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

This unique business was established by the current owner in 1989. Since that time it has developed an outstanding reputation as the ceiling cleaners of choice in London and the South East, although the business does undertake work throughout the country.

The business generates circa 20% of total sales engaging with clients directly, whilst 80% of total sales are undertaken as sub-contractors to major FM service providers, office cleaners and building contractors. The latter extensively use the company’s service, especially after office or store refurbishment projects where the suspended ceiling has not been replaced and needs thorough cleaning.

Circa 120 jobs per annum are completed, with more than 80% being with repeat clients. In this regard a demonstrable ‘blue chip’ client base is enjoyed. The following organisations use the company’s services:

• GlaxoSmithKline
• BMW (GB) Ltd
• Fidelity Investments
• South African Airways
• Embassy of the United States
• New Zealand High Commission
• LloydsTSB
• Cantor Fitzgerald
• Royal Sun Alliance

Suspended ceilings are made from either fibre or metal, with the latter being the most common installed today. Buildings owners generally clean their ceilings for the following reasons:

• They have become dirty and the appearance is poor.
• When dirty they lose much of their light reflective properties meaning the office or store space becomes darker.
• It is much cheaper to clean than to replace a suspended ceiling.

The business has the benefit of using only agency employed staff. A relationship has existed with a local employment agency for many years who provide all the staff needed. This means that in busy times extra people can readily be sourced and during the quieter summer months, direct costs are matched to the contracts undertaken.

All work is priced on the square metre size of the ceiling to be cleaned.
Equipment

All the necessary cleaning equipment is directly owned by the company.

Customer Service

The highest levels of personal service sit at the heart of the business’s client engagement strategy. All clients sign a satisfaction and completion report at the end of the job.

Key Strengths

This business is professionally and expertly managed.

The company has forged a reputation for providing a high standard of service to clients; much of the new business obtained in any given year comes solely from the recommendation of others.

Success is due to the quality and professionalism of the services offered. Central to the company success is its total commitment to quality and customer care, which is focused to a great extent upon levels of satisfaction, the area where the reputation of the business can be made or lost. Understanding this has meant that the business has prioritised this area to deliver its customer relationship management strategy. This business has achieved a recognised, highly regarded name, through keen pricing in a demanding market environment.

A Health & Safety advisor is retained to ensure all work is undertaken within the latest regulatory framework.

Growth and Expansion

To maintain resilience and to spread risk, the current owner has ensured that no more than 20% of total annual sales are concentrated with one client. A new owner with renewed vigour and greater appetite for risk will be able to drive accelerated growth, since much larger contracts are often available but refused currently.
Premises

The business is run very effectively from the owner’s home office; thereby keeping overheads to a minimum.
Advertising and Marketing

A professionally designed, hosted and maintained website serves as the ‘shop window’ for the business. This is the only marketing activity currently undertaken, as the majority of new business is generated through referrals and direct ‘word of mouth’ recommendation.

To drive further growth the business would undoubtedly benefit from the development and execution of a strategic marketing plan addressing all media activities.
Financial profile:
The business is being offered for sale on an ongoing concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business is financially stable with low levels of borrowing and enjoys a strong order book with very high gross and net margins and has shown consistent performance since trading begun. Turnover in the current year is forecast at £160,000
Employees

This is a superb owner operated business, since with the exception of the agency employed cleaning staff, only the current owner directly works within the company.
Support and Training

A period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership. This will also guarantee continuity to the client base.
Reason for Sale

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further significant growth potential.
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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