business for sale

Groundwork Contractors

Businesses for Sale

Sale Memorandum

Groundwork Contractors


Ref.GB043

Location Yorkshire

Asking Price £3,600,000

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 revenue of £ 2.52 Million
Work in progress, of £ 4.81 Million
First class established client/customer base
Excellent supplier partnerships
Superb opportunity to grow
On-going growth pattern
Excellent profit margins
Training and handover
Sterling reputation
Goodwill

Business profile:

The sale of this business presents a rare opportunity to acquire an extremely well organised and highly successful business. Established from scratch by our clients in 1999 there is genuine and demonstrable scope for substantial growth of the business.

The Company offers a range of groundwork services to the construction industry, with the majority of its work being carried out on new housing development.

Foundations, roads, and all services can be carried out to a high specification, within budget and on schedule.

Through its trading history, this Company is the preferred supplier of large house building companies, and as such has work in progress valued at 4.81 million, over the next three years. A strong indication on the quality of works provided.

The Company has previously invested all its efforts in the Yorkshire area, but is now ideally poised to fulfil contracts and bid for tender in other key geographic areas.

A strong cash flow, three-year order book and an extensive list of high profile works already to its name, make this Company a superb opportunity for the right investor.

Key Strengths:

•Very well established business providing high customer service levels
•High level of self sufficiency, giving competitive pricing and fast turnaround
•Enviable customer base
•Excellent operating margins
•Strong reputation among clients
•High repeat business
•Flexible business
•Commitment to providing a quality service
•Excellent reputation with clients and suppliers
•Thorough and efficient service
•Solid client base
•Strong profit growth
•In depth knowledge of business
•Careful attention to detail
•Excellent reputation
•Recognized industry name
•Few competitors
•Overheads kept to a minimum

Customer Service:
This business has expertise, highly skilled personnel and reliability.

As well as its dedication to customer satisfaction, it has attracted and continues to attract new referrals and an extensive base of very satisfied clientele. As a plus, key personnel are willing to continue with the company, promoting the growth and the success of the business.

The company combines large company experience with small company flexibility. It is particularly renowned for the quality and dependability of its pre-contract planning and problem solving capabilities.

Key Opportunities:
The existing owners have been content to stay focussed on the just the local area, ignoring the vast opportunity to market their successful formula further afield.

The business would benefit from further sales and marketing development, direct or otherwise. Already the preferred company of a few corporate clients with such a strong portfolio of work and excellent record of accomplishment to sell from there is the potential of being able to develop links with other organisations; this will ultimately generate further business.

With a strong demand for services and capacity to increase turnover, a new owner would contribute fresh marketing ideas and outside influence to build on an excellent base

•Vast scope to incorporate a business website to further expose the business
•Opportunity to tender for lucrative contracts and works
•Opportunity to expand into other area’s within England
•Huge potential for expansion of the business
•Scope to employ further staff
•Excellent opportunity to advertise the business further
Advertising and Marketing:

To date, new work and the very healthy cash flow have been generated just from word of mouth recommendations - there has been little or no sales effort, little advertising, no brochures, and no use made of the company’s presence on the internet.

By using any of the above mediums, the business could dramatically increase its presence, turnover and bottom line.
Financial profile:
The business is being offered for sale on a going concern basis, 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 borrowings, low overheads, positive cash flow, enjoying a Strong Order Book, high gross profit

Turnover last year was £2,521 Million, with a GP of £1,080 Million, resulting in a net profit of £754, 168.
Management and Staff:

The Company has in place a sound management structure, which means that the business does not depend on the Owners involvement on a day-to-day basis.

The staffing consists of a Contract Manager, Supervisor, two office admin with a further seven tradesmen involved in works at any one time.
Support and Training:

Owner agrees to a reasonable transition period and is willing to offer his full support to the new owners.
Reason for Sale:

The Owner is placing this thriving business on the market as he has other business interests that he wishes to concentrate on.
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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