business for sale

Fire and Flood Restoration Company

Businesses for Sale

Sale Memorandum

Fire and Flood Restoration Company


Ref.GC038

Location M4 Corridor

Asking Price £ 2,300,000

Confidential offered for sale

Asking price includes:

Hugely successful franchise with large geographical designated territory
Work in progress, material stocks, tools and equipment
2007 Sales of projected £1.75Million
Wide range of products and services
Un patented technical know-how
Sales which growing year on year
Established client/customer base
Superb franchise relationship
Excellent opportunity to grow
Office furniture and equipment
Complete Turnkey Operation
Highly skilled technicians
Extremely lucrative margins
Award-winning dealer Training and handover
Vehicles (sign written vans)
Top franchise Dealer
Excellent reputation
Leasehold property
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 franchised business was bought in 1999 by its present director who has built it into one of the largest most profitable business’s within the franchise group.
It specialises in working on behalf of national insurance companies in supplying fire and flood restoration work as part of the process to make the affected premises rehabitable. Having carried out the immediate requirement to clear up or dry out a building the company prepares a full detailed report for the insurance company who are then in a position to authorise and cost repair work.
In addition to which the business has broadened the range of its services to include full refurbishment of premises including all building, electrical and decorative work plus restoration of furniture, rugs and carpets, china , porcelain and electrical items.

Equipment:

The company has a full complement of generators, de-humidifiers, air moving systems and venting equipment that it uses on site. In addition to which it has an ultrasonic cleaning tank, carpet cleaning machines, spray equipment and large range of small tools and equipment associated with restoration work.

Customer Service:

There are a number of key clients in every job. The property owner, the loss adjuster and the insurance company. Negative feedback from any one of these three can have an adverse effect on the business. The carefully selected and trained team fully understand the importance of customer care and work hard at building and maintaining relationships with all parties. The net result of this strategy has been consistent growth, increase in territory size, a superb reputation, an award winning performance and little effective competition.
Eighty per cent of the companies work comes from the central call centre. Fifteen per cent comes from loss adjusters and a further five per cent comes from commercial and domestic customers.
Key Strengths:

The business really scores above its competitors because it has broadened the range of its services. It is obviously more cost effective for an insurance company to repair and refurbish existing equipment, furnishings and belongings rather than replace them with new items. This is exactly what the company provides as part of its overall portfolio of services. Having provided the loss adjuster with a comprehensive report on the condition of every damaged structure and its contents the operation is in an ideal position to tender for the refurbishment work. The net result is the insurance company gains significant savings.

Growth and Expansion:

The business cannot cope with the level of enquiries. It currently handles one hundred and fifty jobs per month that are provided by the franchisor who drives the sales and marketing strategy and establishes formal relationships with major insurance companies. At least an additional thirty jobs are placed by loss adjusters who know the quality of the workmanship carried out by this well-established team.
The further development of relationships with loss adjusters in the area would drive volumes and profits still higher.
Premises:

The business occupies a leasehold industrial unit covering approximately seven and a half thousand square feet. This includes a large storage /refurbishment area, and staff offices and toilets. The premises are available for an annual lease of £24,000 for a period to be agreed as part of the sale process.
Advertising and Marketing:

The majority of the Advertising and marketing is carried out centrally by the franchisor
Financial profile:
All financial information will be handled under the auspices of Turner Butler and subject to the standard letters of confidentiality being in place. This is a very well run and highly profitable business. The company is on target to achieve its objective of £1.7million pound turnover in the present financial year. This will reflect a profit before tax in the region of £500,000. The company has no borrowings and is financially sound.
Employees:

The director genuinely values this workforce. Many have been with him since day one and there is a real team spirit in the company.
The staff consists of
One Director
One Operations Manager
One Technical Training Manager with special responsibility for relationships with loss adjusters.
Two Senior Technicians responsible for the larger projects
Eight –Ten Technicians
One French Polisher
Two Fire Technicians
Four Administrators / Auditors
Three general Admin
One Credit Controller
One PA to the Management Team
Support and Training

This will be exemplary. The buyer will get the full and ongoing support of the franchisor, which will include an initial three-week training course plus a seamless and professional handover from the director for a period to be agreed as part of the overall negotiations
Reason for Sale:

The key director has a number of additional commercial interests and opportunities.
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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