Well established independent mail order operation with a comprehensive range of Nail Care Products for the trade
Ref.ER009 Location KentAsking Price £ 160,000Confidential offered for sale | |
Asking price includes:
Turnover for the 2005/6 financial year of £295,100
Gross profits of £85,400
Stock of £50,000 +
Comprehensive range of products
Loyal database of 2,500 customers
Ten years of successful operation
Excellent supplier relationships
Further potential for growth
Training and handover
Re-locatable business
E-commerce site
Low overheads
Catalogue
Goodwill
Stock
Staff | | 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: | Established in 1997, this business was the first independent in the UK specialising in the distribution of nailcare products. Ten years on and this business is still a major force in the marketplace with a base of over 2,500 regular customers including nail bars, beauty salons and mobile nail technicians throughout the UK. This approximates to a market share of between 6 and 8%, in a market that is generally accepted to be one of the fastest growing in the UK.
Working primarily through mail order issuing a full colour catalogue each year, this business was created to bring to the UK market the very best available products for the nail professional offering an extensive range of general manicure and pedicure products, nail extension products as well as an unbeatable range of polishes and treatment solutions – incorporating some of the best brands on the market. This business is also the distributor for the UK and Northern Ireland for one of the world’s largest natural nail treatment brands as well as being an Agent for a leading supplier of salon furniture. Augmenting mail order, the business has a very well designed and easy to navigate, secure, e-commerce website – soon to be re-launched - as well as freelance reps operating in the South East and South West of England. A very professional and successful outbound telesales operation maintains contact with this business’s extensive and loyal Client base.
Currently situated in leasehold premises in Kent, but easily re-locatable, the cornerstone to the success of this business is its competitive pricing, fast deliveries – orders received before 3.00 pm are dispatched same day using national carriers - and excellent customer service, helping its customers build their businesses by using its extensive knowledge of all of the products available on the market.
This is a very well established business – one of the few independents still operating in the market. With turnover consistently in the region of £300,000 and above, generating gross margins of 30% this is represents an excellent opportunity to acquire a leading trade distributor of nailcare products in the UK. | Key strengths:
Carefully managed throughout its ten years of operation, this is a very well established business with a very loyal, extensive base of 2,500 customers. It is considered to be an efficient and competitive supplier offering a comprehensive range of products – covering all the areas required by a nailcare professional. It benefits from high levels of awareness within the health and beauty sector and excellent relationships with its manufacturers and suppliers.
Independent, this business sources all of its own products, ensuring its customers have access to all the latest products as they become available – all at very competitive prices. It has carved out a significant market share within what is a very important and growing market sector.
This business is well renowned for its first class customer service. With large volumes of product in stock this business prides itself on a swift response to all enquiries and orders and in the overwhelming majority of cases, dispatches product the same day an order is received.
Key opportunities:
There is an outstanding opportunity to build on the existing services and customer base of this company. With a strong demand for services combined with a capacity to increase turnover, a new owner contributing additional resources, fresh ideas, drive and enthusiasm will have every advantage of building on an excellent platform. With between 6 – 8% marketshare the current Owners believe a 10% market share is easily achievable with just a slight investment in resources.
Having once been a very strong brand within the training sector there is every opportunity for this business to revisit colleges and re-establish itself with the future of the industry. Having established itself as a major player, the business has scaled down its appearances within the trade press and at trade shows. Arguably an occasional presence just to remind the industry of its existence would generate returns. Similarly by extending its sales rep coverage beyond the South East and South West of England – and in making particular plans to target the increasingly important sector of salons run by the ethnic minorities principally from Malaysia, would have a significant impact on turnover and profitability. | | Premises:
Operating from approximately 900 square feet of dedicated space plus a small stock room and warehousing area, this business currently shares office space with another business operated by its current Owners.
The premises are leasehold with 6 years remaining on the lease – though it is understood that this could easily be extended if required. Rent for the premises overall is £14,000 though this together with the Rates of £4,500 are split with the other business operated there.
Being predominantly mail order and web based the business is easily re-locatable. | Advertising and marketing:
This business established its name through a constant presence at trade shows and by advertising in the trade press. More recently this business has scaled down its investment in these areas relying on the high levels of trade awareness it had previously built.
The business produces a very well designed, mail order catalogue each year which it distributes to its own customer base and prospects via inserts in the major trade press. It also has a very attractive, easy to navigate, secure e-commerce site which is due for re-launch very shortly. The business also operates a very efficient outbound telesales operation.
Most importantly the business enjoys high levels of recommendation, testimony to the excellent product range, its very competitive pricing and high levels of customer service this business provides. | | | Financial profile: | The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The operation is financially stable with no borrowings, low overheads, positive cash flow, and has performed consistently well over a number of years. The current turnover is just over £295,000 per annum, generating gross profits in excess of £85,400 and profits available to the Owners of the business of £52,300 in the financial year ending February 2006. | Employees:
Aside from the current Owners of the business, day-to-day running of the operation is in the hands of two full time sales staff processing orders, together with two part time telesales staff focused on winning new business. There are two freelance sales reps operating throughout the South East and South West of England respectively. | | Reason for sale:
The current Owners wish 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 | |
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