business for sale

Poultry Products Preparation & Supply Company

Businesses for Sale

Sale Memorandum


Ref.EB017

Location Bolton GreaterManchester

Asking Price £500,000

Annual turnover of circa £2.2 million

Gross Profit is circa £328K

Confidential offered for sale

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Asking price includes:

Annual turnover of circa £3 million
All relevant food hygiene registrations
Full EC approvals/licenses by the Food Standards Agency
Excellent leasehold property
Good profit margins
All fixtures and fittings
Modern equipment
Massive growth potential
Established client base
Loyal and experienced workforce
First class reputation
Handover and training
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 family business was founded in 2000 and supplys poultry products to a wide variety of clients on both a regional and national scale. Its core business is the preparation and supply of poultry products and this includes the deboning, skinning, chopping and packaging of finished products to the market place. The company has all the necessary food hygiene and health and safety certification required to operate its business within this highly lucrative arena including the Approval Of Food Business Establishment Regulation U.K. 4807 EC as issued by The Food Standards Agency.

The business has enjoyed consistent growth year on year and this trend is expected to continue due to the company’s consistent and high quality levels of supply together with its growing reputation.

Equipment:

Equipment includes large industrial sized cool rooms, cold rooms and freezers, as you would expect to facilitate this size of operation. All worktops and relevant fixtures and fittings within the preparation areas are stainless steel and all wall coverings and floors are as per the requirements laid down in current food preparation and production hygiene legislation.

Customer Service:

The excellent customer service delivered is because the business can comfortably fulfil its client’s needs consistently by having an excellent supplier base as well as a flexible approach to business. All staff are loyal and understand that it is this flexibility and willingness to ensure complete customer satisfaction that ensures regular repeat business and continued growth.

Key Strengths:

This business has achieved a recognised name through supplying a consistent and competitive product range to an increasing customer base that is growing stronger and broader daily. It is able to respond quickly and positively to client demands and over the years they have built up a reputation for honesty and integrity, and for being easy to deal with. This is reflected by the impressive levels of repeat business and customer retention levels.
Key Opportunities:

At present the business operates within a quite select sector of the marketplace it serves. There is no reason why the business should not expand into this broader market as it is very well positioned with regards price, reputation and quality of products it has to offer. This alone represents a huge opportunity to further increase revenues through additional sales and better economies of scale.

The market outlook for the business is very positive. The company has grown to date without any real sales and marketing activity. All sales have been generated through word of mouth recommendations. All the foundations are in place with regards to compliance with the strict health and safety and food hygiene legislation. The company would benefit from a new owner with new initiatives, ideas and an injection of energy to take it through its next period of growth.
Security:

The building is part of a multi-occupancy site with good levels of access and security. All access points have roller shutter doors.
Premises:

The premises comprise of a small office and reception area leading through to the preparation, storage, processing and dispatch sectors. Each sector is fitted out to a high standard to meet current legislation including stainless steel worktops, covered and sealed walls and safety flooring. Integrated equipment includes large walk in cold stores and freezers.

Total floor space is approx 6000 square feet.
Property is leasehold with 23 years remaining.
Annual rent is currently £15,600 p.a.

The site is located within a well established town close to the centre with good access.

Business Hours:

Monday- Friday 9.00am- 5.00pm.
Advertising and Marketing:

The company currently undertakes no advertising and marketing and all sales are a result of word of mouth recommendations and repeat business.
Financial profile:
The business revenues have grown year on year with turnover for the current year expected to be circa £3 million. Profitability and cash flow is very good as you would expect from this sector.

The business is being offered for sale on an ongoing concern basis. All financial discussions will take place directly between the vendor and any interested party under the auspices of Turner Butler.
Employees:

There are the 3 owner/directors of the company who oversee the day to day running of the operation. There are 12 full time production operatives, as well as 4 part time production staff. All production staff work on a “piecework” basis.
Support and Training:

The Directors will fully assist with hand over and training.
Reason for Sale:

The current owners wish to develop their 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

Next steps

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