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Builders Merchants Suppliers

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Sale Memorandum

Builders Merchants Suppliers


Ref.GB057

Location West Midlands

Asking Price £ 575,000

Confidential offered for sale

Asking price includes:

Sales of circa £640,000 per annum
Materials, tools and equipment
Established client/customer base
Excellent opportunity to grow
Office furniture and equipment
Excellent supplier partnerships
Complete Turnkey Operation
Excellent profit margins
Re locatable Business
Training and handover
Sterling reputation
Security System
Great location
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 has traded successfully since it was founded in 1987. It has established itself as one of the key suppliers of materials to builder’s merchants and to small to medium sized builders.

The company particularly specializes in providing all forms of structural steelwork. Fifty eight percent of its turnover is generated by selling steel lintels, the remaining turnover comes from the supply of wall ties, joist hangers, loft access equipment and ventilation products.

Major national companies will often buy from this company as it can supply unusual lengths and shapes of lintels.

Its geographical location allows it to service customers in both North and South Wales, North as far as Liverpool, East Leicestershire and some parts of London.

While their main suppliers deliver twice a week the nature of their premises allows them to keep good stock levels on site. Most deliveries are carried out by themselves using either a flat bed truck or one of two large commercial trailers.

Stock control is manual with all customers having thirty days credit.

Customer Service:

The business has a database of circa two hundred customers. Fifty of these are active at any one time and all are personally known to the management. The “can do” attitude combined with price and speed of service helps to maintain a loyal customer base.

Key Strengths:

Two partners will stay in the business if required
Financially sound with no borrowings
Excellent location
Blue chip client base
Growth and Expansion:

There is a substantial opportunity to grow this business by targeting national house builders. Increasing the range of materials and equipment will also generate incremental revenue streams.
Security:

The premises are based on an industrial site with its own security. In addition the yard has an excellent perimeter fence.
Premises:

The premises are subject to a leasehold arrangement that expires in December 07. This could be renewed or a buyer may wish to relocate the operation elsewhere. The annual rent is £14,200.
They consist of a secure yard covering three hundred and twenty square yards and offices and warehousing of two thousand two hundred and seventy square feet
Advertising and Marketing:

The company has no need to advertise. This is because it has customers referred to them by their suppliers. Sales representatives introduce new clients and buyers working for large building concerns will “take them” with them when they move companies.
Financial profile:
All financial information will be made available under the auspices of Turner Butler.
The company enjoys a turnover in the region of £650,000 with healthy gross profits circa £250,000. Net profits before depreciation, tax and drawings average out at around £170,000.
Employees:

Three partners, (two will stay if required)
One driver / warehouseman
One administrator
Support and Training

Clearly this is a great opportunity for someone wishing to invest in a business and to retain the experience and expertise of two of the management team. Alternatively the operation could be relocated and absorbed into a larger operation with relative ease.
Reason for Sale:

One of the partners wishes to retire. The remaining two partners would be willing to stay with the business on a salaried basis subject to negotiation.
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

If you are interested in finding out more about this business please:

  1. Click here to generate the Confidentiality agreement with your details
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  3. Sign the confidentiality agreement and fax each page of the document to 0870 432 3611
  4. We will contact you and put you in touch with the seller of the business.

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