business for sale

Well established & prominently located, Premium & Budget Contemporary & Traditional Fireplace Retail

Businesses for Sale

Sale Memorandum

Well established & prominently located, Premium & Budget Contemporary & Traditional Fireplace Retailer


Ref.ET006

Location London

Asking Price £ 159,000

Confidential offered for sale

Asking price £159,000 + SAV

Asking Price Includes
Successful range of products and brands
Long and short term return custom
Sales of circa £360,000 per annum
Many years of successful trading
Un patented technical know-how
Substantial leasehold property
Excellent opportunity to grow
Approx 3,000 sq ft showroom
Trusted and respected name
Unique offering in the area
Established customer base
Superb main road location
Training and handover
Significant Goodwill
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 business was founded in 1978 by the Vendor with a generous combination of innovative insight and entrepreneurial spirit and has grown since to become a significant enterprise with a reputation for the quality and variety of its products, brands, service and reliability.

The business enjoys a prime main road location in one of the most busy London regions and benefits from its unique offering in traditional and contemporary fireplaces and accessories, built to exacting standards and a firm favourite with the area’s discerning clientele.

The business has been established in the town for 28 years in current ownership and as such is considered a part of the fabric of the local community. The vendor has been involved in the business since its first days of trading and can offer considerable advice and information concerning all aspects trading in the region.

The welcoming, comfortable and extensive showroom currently displays on one floor, of approximately 3,000 square feet and has the advantage of a storage area that extends the total retail area by more than 1,000 square feet.

The products are displayed in extremely attractive settings providing the customer with the fullest possible context for choice options that include mantles, hearths, fireplaces and an extensive portfolio of accessories.
The business is further supported by exemplary relations with key suppliers who have helped to ensure that client service and product quality is never compromised and that customers receive the highest possible quality of service, leading to the existing high levels of return custom. This commitment to suppliers and customers has underpinned this business’s abilities in service quality and sustained business success.
The business has invested to a suitable degree in technology and has an up to date administration and accounting system. The business also benefits from a very small requirement for customer credit and essentially trades with payment required on delivery.
The business is an excellent opportunity for any investor seeking an opportunity to invest in a successful business that has an in depth knowledge about their products and significant scope for future development and growth.
Customer Service

The business considers simply that happy customers come back and on that simple basis has maintained levels of product and service quality intended to best guarantee that happiness. The results of this commitment are evident in the degree of return custom and the choice of this business by new customers over competitors.

Key strengths

The business is an organisation where the vendor has, over time developed and nurtured key staff capable of overseeing business operations effectively, reducing the need for constant input from the vendor. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the relationship with the vendor.
The quality of the location cannot be overstated since its prominence guarantees access, visibility and footfall, the quality of the showroom plays no less a part in meeting customer expectation as created by the large and inviting window displays.
The business is well established and very profitable, with a strong and growing customer base, retaining a high level of return custom; a great many of whom having done so on a regular basis and for many years.
The company has earned an outstanding reputation for its honesty, service, reliability, casual and open customer experience, excellent quality products and highly knowledgeable and experienced staff.
The result of this combination of strengths is a differentiation in its marketplace, allowing for the sustaining of profitable margins at no loss to custom – a clear competitive advantage.
Growth and Expansion

The current market for this business’s products is stable and is forecast in the near and longer term for significant growth. The business is well positioned to take maximum advantage of this growth as it occurs.

Key opportunities

This is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business’s products, a new owner contributing fresh ideas will have every advantage of building on an excellent platform.
This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with investment in marketing including advertising and as yet unexploited internet opportunities, where the business has lacked in its aggression in the past.

Technology

Administrative systems have been implemented to provide the required technology for a modern and efficient business.
Advertising and marketing

The business has used limited advertising in the past and there are excellent opportunities to increase this and to introduce an internet presence to market the business more aggressively and to significantly increase turnover.
A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation.
Financial profile:
The business is being offered for sale on a going 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 borrowings, low overheads, positive cash flow, high gross and high net profit and has shown consistent growth over 28 years of trading.
Sales revenue is circa £360,000 per annum and the vendor feels that with investment in marketing and the expected increase in market demand the business could dramatically increase its revenues.
Employees

The business employs 1 managerial full time staff member and 2 part time staff, who together with the vendor are responsible for the day to day operations.
Premises

The business is located in an easily accessible area in London and operates from a circa 4,000 square feet area including showroom, storage, workshop and administration.
Reason for sale

The business is for sale as a result of the vendor’s wish to follow other areas of interest.
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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