business for sale

Established and well-respected builder - New build, extensions, renovations, refurbishment and maint

Businesses for Sale

Sale Memorandum

Established and well-respected builder -
New build, extensions, renovations, refurbishment and maintenance


Ref.GB032

Location Hampshire

Asking Price £665,000

Confidential offered for sale


Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA
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Asking price includes:

Annual turnover of almost £1.5m
Gross profits of approximately £230,000
A trusted and respected reputation in the local marketplace
Small maintenance projects right through to new build
Huge opportunities and expansion capabilities
Qualified and highly skilled workforce
Substantial loyal domestic client base
Sustained and steady growth
Excellent profit margins
Leasehold property
Strong Order Book
Goodwill

Business profile:

A well-respected builder, this company has established an excellent reputation within the local marketplace in which it operates based upon over thirty years of successful trading. The follow up to a very successful family business, this company carries out all manner of works within a twenty to twenty five mile radius of its base in Hampshire, including extensions, renovations and refurbishments as well as smaller maintenance jobs which are taken care of by this business’s teams of highly skilled tradesmen. Almost exclusively of the domestic nature – though Clients can be public or private - projects can vary from a replacement tap washer or a blocked drain right through to a £500,000 plus contract.

This business is a member of both the Federation of Master Builders as well as the NHBC. High quality workmanship and finishing together with reliability and competitive pricing means the services of this business are always in demand with many Clients considering this business to be ‘their builder’. Repeat work is such that this business has had little need to look outside its existing customer base for several years now.

The company directly employs a workforce of 16 persons across the full spectrum of trades and has numerous contacts in the sub-contractors field, with on average 8 or so employed at any one time for the more straightforward trades and other specialist works. All employees are highly skilled and well qualified to ensure they are capable of completing the tasks in hand.

Large enough to cope but small enough to care could easily be the motto of this business. It is careful to manage the expectations of its Clients and is perhaps unusual in its sector and for its size with Project Managers assigned to each and every job who are independent of the on-site personnel. Through this the company has an excellent reputation for project management, fast response and attention to detail with any problems dealt with promptly and always to the customer’s satisfaction. With some Clients with very large and valuable properties it is an approach that pays significant dividends with regular on-going work.

With a turnover for the 2004/5 financial year of £1.45m and gross profits of nearly £230,000 per annum, this is an excellent opportunity to acquire a building contractor with a significant, affluent, loyal and on-going Client base.

Key strengths:
This business believes in providing a high level of service and such is its reputation amongst its existing customer base that it receives work simply because its there and there is always someone on hand to answer the telephone.
This business is quite diverse in the range of services it provides and prides itself on its ability to adapt to suit the customer’s exact requirements. With a proven track record in small works, including call out maintenance, it is equally as comfortable with half a million pound plus projects. This flexible approach ensures this business is never reliant on any one particular contract being placed with it or the revenues coming in from any one particular contract since cashflows arrive from many different directions simultaneously. Consequently this business has an excellent financial footing having been run without the requirement to borrow money. This excellent financial performance has enabled this business to finance the larger contracts and deliver them to the client within budget and perhaps more importantly on time.
Key opportunities:
This business maintains an extensive base of satisfied clientele who appreciate excellent workmanship and high levels of service. The vast majority of work however comes from existing relationships including with Architects and Surveyors and there are many opportunities for further growth from sales to new customers, which the existing Company management have had little opportunity to pursue due to current workloads and the limitations of the current management structure. This could easily be addressed by strengthening the second tier of management within the organisation by recruiting additional Contracts Managers.
Although this business has in the past concentrated on the domestic market one fairly recent recruit to the business has some very significant contacts on the Commercial side of the business which are beginning to generate additional enquiries. Further recruitment would enable time to be freed up within the management structure to capitalise on these opportunities and boost turnover and profitability even further.
This business has been very successful in securing work through Local Authorities involved in modifying the accommodation of older people to enable them to stay in their homes rather than be moved to sheltered accommodation, nursing homes etc. It is believed that the experience and expertise this business has been building within this sector could be utilised to secure additional work of this nature with other local councils.
The company has done little or no marketing in the past relying on strong word of mouth recommendations to generate additional business. More assertive marketing and promotion within the appropriate market sectors could acquire an even larger slice of the market and further increase turnover.
A new owner with fresh management skills could contribute innovative ideas and outside influence to build on this excellent base.
Premises:
This business operates from an industrial unit of approximately 1,000 square feet with a mezzanine floor located on a small industrial estate with good parking facilities and easy access to the motorway network.
Used mainly as a store with some office accommodation the property is leasehold with a twenty-five year lease taken out in 1987 at a rent of £7,500 per annum. Rates are approximately £2,000 per annum.
Information Technology:
This business operates using Integrity Software, a software package designed specifically for use within the construction industry.
Marketing and Advertising:
This business has done little or no marketing in the past able to rely on the most cost effective form of advertising word of mouth recommendation.
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.
The business is financially stable with no overdraft and enjoys a Very Strong Order Book. A highly successful company it is profitably turning over almost £1.5 million has shown consistent year on year growth in recent years. Gross profits for the 2004/5 year are almost £230,000.
Employees:
Responsible for the day-to-day management of the business are two Partners supported by a Surveyor and further secretarial/administrative support. Permanent employees available for site work are three bricklayers, two ground workers, five carpenters plus an apprentice carpenter, two ‘all-rounders’, a decorator and two labourers. Many of the tradesmen have been with this business for many years reflecting the customer satisfaction they generate from the projects they have worked on in the past.
The business also has a large bank of sub-contractors from which it selects on a regular basis having at least eight on site on average each day.
Support and Training:
The owners are happy to provide a period of training and handover of up to one year to ensure a smooth transfer of the business, if appropriate and subject to negotiation.
Reason for Sale:
This is a genuine retirement sale. Having enjoyed a more than comfortable living from the business, the owners believe it is time to pursue their leisure interests and hand the business over to new owners to build upon the excellent foundations that have been laid.
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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