business for sale

Established Carpentry Company providing High Quality Carpentry and Joinery Services to the Building

Businesses for Sale

Sale Memorandum

Established Carpentry Company providing High Quality Carpentry and Joinery Services to the Building Trade


Ref.GB049

Location Cambridgeshire

Asking Price £750,000

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:

Net profits circa £250,000 per annum
Turnover of approximately £900,000 per annum
Trusted and respected name
Established, loyal customer base
Excellent reputation for reliability
Completely portable business
Excellent pool of highly skilled tradesmen
Many years of successful operations
Un patented technical know-how
Excellent opportunity to grow
Established customer base
Training and handover
Significant Goodwill

Business profile:

Providing high quality, reliable carpentry services this is an established firm run by skilled craftsmen. The owner formed the business in 1986 and has extensive experience in handling large site projects and one off Special Projects. The business specialises in the Contract Management of Carpentry on New Builds Sites, Domestic and Special Projects.

The business deliberately concentrates on a geographical area within a 30 mile radius, with the qualified and experienced workforce of this business having successfully completed numerous projects across Cambridgeshire and Bedfordshire and acquiring a reputation within the industry for reliability and excellence. The business offers a complete service from initial tender stage valuations to accurate, well-presented applications, they have established a list of Blue Chip main contracts among their ever growing client base. The company prides itself on giving equal attention to both its modest and larger contracts.

With its extensive experience and knowledge this business is one of the first to be included on the tender list of all the major contractors and blue chip developers operating within its local area, winning far more tenders than it loses. Committed to maintaining the business within easily manageable confines this business often turns down highly lucrative projects.

Having completed numerous new builds in the past including one off individual homes the business also has a strong track record in domestic and commercial refurbishment and the development of both public and private buildings.

This business prides itself on its attention to detail and high quality workmanship, appreciating that each project is different and therefore needs to be managed as such.
Providing management as well as the craftsmen, with a supervisor on-site at all times, this business ensures that each project and every aspect of any project – the fixing of joists, roof construction, etc. is completed to a very high standard.

With a turnover of approximately £900,000 per annum and gross margins approaching £300,00 per annum the business still has significant untapped growth potential, which represents an excellent opportunity to acquire a well-established and profitable business.

Key Strengths:

Having a wealth of experience in the industry this business offers exceptional levels of service. Tried and tested, offering very competitive prices, it is one of the first on every tender list for the vast majority of the contractors and developers operating within its catchment area. With a very well established reputation this business benefits from significant word of mouth recommendation and in the few places it is not known is passed around from one Contracts Manager to the other.

With a good selection of tradesmen to choose from this business always has the right resources available for the job. It takes a very professional approach to every job regardless of contract size. In a sector where reliability can be an issue this business always delivers, on time and on budget.
Key Opportunities:

This is a unique opportunity to acquire a carpentry contract business that is not only extremely profitable, but has tremendous potential for the future. The company would be an ideal bolt-on business for a main contractor or a joinery company wishing to expand, or as a very profitable stand alone company which is fully re-locatable.

The business is now well placed for expansion being managed quite conservatively by its current owners. It limits its area of operation to within easy striking distance of its base as well as the size of the contracts for which it tenders which results in many opportunities being turned down.

With limited management resources, tenders made are rarely followed up resulting in jobs lost which ordinarily could be won with a little negotiation. Many of the contractors for which this business works have requested this business ‘gear up’ to meet increased demand.

Additional skilled labour could most certainly be profitably employed by this business. As well as increasing turnover and profitability, additional labour would also offer the commercial advantage of greater flexibility in the deployment of the workforce with additional cost savings arising from economies of scale.
Premises:

Based currently in a home office environment the business is easily re-locatable
Advertising and Marketing:

A high proportion of the business's revenue arises from strong word of mouth recommendation, bearing testimony to the excellent reputation this business has throughout the industry.
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.

In recent years turnover has shown steady growth Turnover for the most recent year for which figures are available was approximately £900,000 with a net profit of almost £250,000. It is envisaged that results for the current financial year will yet again be on a par with previous years – a level at which the current owners are comfortable to manage.
Employees:

The vendors are responsible for the day-to-day management of the business supported by an administration team of two.All carpenters from the pool of 20 sub contractors are fully qualified and insured, and pride themselves on professionalism, reliability and integrity. The majority have an association of between 10 and 20 years with this business.
Support and Training

The owner will provide full business familiarisation, training and handover.
Reason for Sale:

The owners of the business wish to concentrate on other business interests and in particular property development and as such may well prove to be a profitable source of turnover and revenue for the new owners of this business
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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