business for sale

Leading specialist Food Safety & Health & Safety Consultancy: Superb on-going development potential

Businesses for Sale

Sale Memorandum

Leading specialist Food Safety
& Health & Safety Consultancy:
Superb on-going development potential


Ref.GC049

Location Home Counties

Asking Price £ 395,000

Confidential offered for sale

Asking price includes:

Turnover circa £425,000
Net profit circa £90,000
Blue chip client list
Highly experienced, dedicated staff
Very low overheads
Goodwill
Training & Handover
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 leading Food Safety (FS) and Health & Safety (H&S) practice was established by the current owner in 1991. Since that time it has developed to be recognised as one of the leading consultancies in the field.

The business has grown in response to progressive UK Governments implementing new legislation to control the critical areas of FS & H&S. In response businesses have had to ensure that their internal procedures are at least compliant with the law. Breaches can lead to prosecution, punitive damages and even imprisonment for directors and senior managers.

In broad terms the practice delivers advice to clients through four distinct service lines which are as follows:

• Audit & Inspection – review of current systems and assessment of needs. Checking whether staff are following agreed procedures. Introduction of new standards. Inspection of premises to assess cleanliness.
• Training – on site and public courses.
• Manuals – production of operating documentation.
• Consultancy – high level strategic advice in all aspects of FS & H&S.

Currently circa 70% of sales are generated through FS advice, the balance represented by H&S.

The practice has specific expertise in the catering industry, hotels, restaurants, educational establishments, healthcare and conference centres. Clients from the legal profession and the insurance industry also feature.

Equipment

The business exploits bioluminescence technology by using luminometers to assess the levels of contamination on food preparation surfaces and equipment which provides customers with instant monitoring of cleanliness.

Customer Service

The highest levels of professional, personal service sit at the heart of the practice’s engagement strategy.
Key Strengths

In the sixteen years of operation, the business has developed first class inspection regimes that are extensively utilised at client premises. This is a replicable model and ensures that margins are maintained and that quotations for new work are accurate.

The practice prides itself in that advice given is viewed as pragmatic and easy to understand – clients consistently demand simple to use solutions to fix problems. It is also viewed as ‘easy to do business with’ and will always attempt to make H&S ‘fun’. This is not an easy objective to meet, since the compliance regime can be demanding, yet a ‘fun’ approach can often win over potential cynicism from clients’ staff.

Over the years of operation the practice has built up a superb reputation. This has resulted in some long term relationships being developed: some clients have used the business for more than ten years. In addition, much new business has been gained through direct ‘word of mouth’ recommendation from delighted clients. Reliability is also a key quality: the practice will ensure that promises made are kept.

A loyal and long serving work force are employed, some of whom have worked within the business for seven years or more.
Growth and Expansion

The practice has grown steadily over the years. However a new owner looking for accelerated growth will employ a sales executive to directly approach target clients and markets. The many success stories from amongst the existing client base will make for superb references.

The business is currently enjoying significant growth in delivering training courses. These are delivered as both public and client specific sessions. To ensure that demand continues to grow greater emphasis can be placed in this area especially as the practice is a registered training centre for the Chartered Institute of Environmental Health (CIEH) at all levels.

Key Opportunities

As part of the ‘global warming agenda’ there is now much focus within businesses addressing environmental awareness (EA). The practice has already developed an EA course and this can be further sold both with new and existing clients in the future.




In addition to potential in existing sectors, new markets can also be exploited. These include:

• Professional offices
• Hotel Groups
• Prisons – both those operated from within the public and private sectors
• Cruise Ships
• Ferries especially cross channel and those sailing to other regions of France, Spain and Scandinavia, all of which have extensive catering operations
• Sandwich production businesses
Premises

The practice is effectively run from a larger home office, thereby keeping overheads to a minimum. Since clients are located throughout the country, it also means that the practice can be readily relocated to any part of the UK.
Advertising and Marketing

The practice utilises a well designed, professionally maintained and hosted website that serves as the shop window to the business. High quality brochures and other sales literature are produced. A list of circa 700 contacts is maintained all of whom receive ‘e-newsletters’. Promotion of training courses is regularly undertaken by email.

The practice is listed within the Caterer & Hotelkeeper directory. It is a member of both the Hospital Catering Association and the Independent Schools’ Bursars Association, where a stand is taken at the annual conference.
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 no borrowing. High gross and net margins are enjoyed and the business has shown consistent performance since trading begun. Turnover to 31st December 2007 is forecast at circa £425,000. Net profits will be circa £90,000.
Employees

In addition to the owner, three further full time consultants are employed all of whom can work both within the FS & H&S arena. One specialist H&S associate is also utilised, who is remunerated on a per diem basis. Two of the above also work within the EA market place. The business also employs an office manager who works four days per week. An administrative person currently works three days per week on a temporary basis.
Support and Training

Unusually, the current owner will agree to an extended period of training, handover and familiarisation to ensure a smooth transition to new ownership.
Reason for Sale

This is a genuine retirement sale. The current owner will be relocating overseas.
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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