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High Quality Specialist Carpentry Contractor

Businesses for Sale

Sale Memorandum

High Quality Specialist Carpentry Contractor


Ref.GB029

Location Bedfordshire

Asking Price £150,000

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:

Gross profits circa £100,000
Turnover of approximately £350,000
Trusted and respected name
Established, loyal customer base
Excellent reputation for reliability
Completely portable business offering
Excellent pool of highly skilled tradesmen
Several years of successful operations
Un patented technical know-how
Excellent opportunity to grow
Established customer base
Training and handover
Significant Goodwill
Sign-written vans
Web-site

Business profile:

Providing high quality, reliable carpentry services this is an established firm run by skilled craftsmen. Formed in 1995 by owners who have extensive experience of handling large site projects as well as one off Special Projects this business specialises in the Contract Management of Carpentry on works such as New Builds, Barn Conversions, Timber Frame Houses and Special Projects.
Deliberately concentrating only on a geographical area within one hour’s travel of the Head Office, the qualified and experienced workforce of this business has successfully completed numerous projects across Cambridgeshire, Bedfordshire and Hertfordshire.
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 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 timber frame houses in the past, one off individual homes or complete housing developments can be catered for, all either from erection to completion or from 1st fix to completion. Recent projects include a 16 house social housing project on behalf of one of the UK’s leading building developers as well as a further private development of 54 houses.
This business also has a strong track record in refurbishment, both domestic and commercial, and the development of both public and private buildings, recently providing all of the carpentry work for the redevelopment of the buildings of several Cambridge colleges.
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 and every project and every aspect of every project – the fixing of joists, roof construction, 1st fix, 2nd fix or finals - is completed to a very high standard.
With a turnover of approximately £350,000 and gross margins approaching 30% with significant untapped growth potential this 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. The owners of the business are not averse to ‘returning to the tools’ to ensure projects stay on track.
Key opportunities:
This business is managed quite conservatively by its current owners. It limits its area of operation to within easy striking distance of its Head Office 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:
Advertising has included some trade press activity in the past, its sign-written vans, the odd board displayed at the Client’s premises during work as well as the occasional highly targeted mail-shot, however 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.
The business has a very well designed and informative web site and has found that the site has performed well generating tangible and profitable business opportunities.
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 been consistently around £350,000 - £370,000 per annum. Turnover for the most recent year for which figures are available was approximately £350,000 with a gross profit of almost £100,000. This turnover and gross profit is slightly down on the previous year due almost entirely to the accounting of work in progress. 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 two founding partners are responsible for the day-to-day management of the business supported with an administration team of two.
In all, the pool of sub contractors from which this business selects numbers approximately 40, from large companies through to sole proprietors, of which between ten and twenty will be on-site at any given time.

Plant and equipment:
Apart from two sign written vans the business has no plant and equipment of any note. All of the sub-contractors are required to supply their own tools.
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

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