business for sale

Specialist Gas Engineering Company-Install, service and repair

Businesses for Sale

Sale Memorandum


Ref.EV005

Location Greater Manchester

Asking Price 175,000

Confidential offered for sale

Asking price includes:

Consistently achieving turnover of £240,000 p.a.
Net profits circa £50,000 p.a.
Twenty five years of successful trading
Excellent growth opportunities
Very high customer retention levels
A trusted and respected name in the industry
Reputation for honesty, reliability and responsibility
A wide range of domestic and commercial clients including the public sector
High level of repeat and recommended business
Highly trained, knowledgeable and loyal staff
Fleet of 4 sign-written vans
Full CORGI Accreditation
On-going growth pattern
Training and handover
Plant and equipment
Fully re-locatable
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:

Established by the owner back in 1982 the business has some twenty five years successful trading experience and in this time has built up a very successful operation and developed a loyal, wide ranging client base. Working primarily as a specialist within the gas equipment market the company provides a full and comprehensive solution to its customers be it installation, servicing or repair, predominantly within the heating market, both domestic and commercial.

The operation covers a 30 mile radius of its base and on occasion will go further should it’s clients require them to do so. Having originally established itself within the domestic arena, the turnover of this business is now roughly split 80% domestic and 20%, commercial and contracts. It has a regular book of service, maintenance, remedial and installation works and is a preferred supplier to several housing associations, local council, private landlords and several estate agents. Projects undertaken by this business vary considerably in size particularly in the commercial sector where this business is increasingly developing a reputation as a high quality reliable yet competitive company.

This business also undertakes emergency call-outs on behalf of its contract customers and recognises this as an area of large growth.

This business has a well-established reputation within the local area for honesty, reliability and integrity. It is a very conscientious organisation providing an excellent, prompt, quality service at very competitive rates. As a result a large proportion of work arises from excellent referrals and recommendations from satisfied clients – clear testament to the standard of work and reliability of the business.

Showing a consistent and steady growth pattern throughout its many years of operation, the turnover of this business is consistently around £240,000 per annum, with no advertising or marketing promotion whatsoever.

As such it represents an excellent opportunity for a new entrant in the marketplace to assume the goodwill built up as a result of the current owner’s efforts, an existing operator outside the area to establish a foothold or alternatively for an existing operator to add considerable turnover, reputation and credence to its own operation.
Key Strengths:

Every aspect of this business is based around providing a high level of customer service and customer satisfaction. This business prides itself on its excellent reputation and does everything required to maintain it. These company beliefs are one of the reasons why the business enjoys very long-standing relationships with many of its clients and a wide portfolio of such satisfied customers. It has a team of very highly qualified, knowledgeable and loyal staff who continue to build on the enviable reputation the business enjoys.

This business has an impressive and regular book of service and maintenance work.

Key Opportunities:

There is great scope and opportunity to develop and expand this operation. A new owner with new ideas, drive and enthusiasm will have every advantage of building on an excellent platform.
Although this business projects a very professional image to its customers, there is room for improvement particularly in relation to the management of the company, where the introduction of tighter administrative and financial systems, as well as the introduction of some basic IT systems would improve the business’s cash flow, efficiency and overall profitability.

A new owner could certainly use the excellent reputation this business has built up within its local marketplace to expand its operations by fully developing its existing customer base, especially within the housing association and commercial sectors. Additional staff would also mean the company could fully tap into the highly profitable and “in-demand” emergency call out sector which would have a very positive effect on future revenues and profitability.

The business has undertaken no extra markting for several years. Even a limited marketing presence would pay dividends particularly if focusing attention on the more lucrative commercial projects this business has been involved in.

Quality Assurance:

The proprietor of this business is CORGI registered.
Premises:

The business operates from the a small office on a short term tenancy lease and as such is easily re-locatable.
Plant and equipment:

This company has all the plant and equipment expected of a business operating in this sector including power tools together with an amount of stock enabling immediate response to emergencies. There is also a fleet of 4 modern and well equipped sign written vans.

Advertising and Marketing:

This business has flourished to date through referrals and word of mouth recommendations. All of its transport is sign-written, helping maintain high levels of awareness throughout its areas of operation.
Financial profile:
The business is being 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..

Turnover for the financial year ending October 2006 is £240,000. Net profits of £47,000.

Full financial information will be available from the Vendor following the completion of the usual formalities.
Management and Staff:

The proprietor of the business is responsible for the day-to-day management of the business supported by part time office staff. There are four fully qualified engineers in addition to the owner . The business also calls upon a number of sub contract staff as required
Support and Training:

The owner will assist fully with hand-over and training to ensure a smooth transfer of the business.
Reason for Sale:

The current owner feels they have taken the business to a level as far as their current management capabilities will allow. They feel a new owner with new ideas, enthusiasm and business acumen can take it through its next period of growth.
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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