Excellent Commercial Joinery Operation
with Guaranteed On-going Turnover
Ref.GE023 Location London, South East LondonAsking Price £250,000Confidential 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 | |
Asking price includes:
Annual turnover in the region of £700,000 - £800,000
Forward order book currently estimated at £450,000
Construction and Development company relationship generating on-going turnover
Modern, efficient, well equipped, recently re-furbished workshop
Comprehensive inventory of plant and equipment
Highly reputable long-standing business
Qualified and highly skilled craftsmen
Computer administration system
Own established client base
Excellent growth potential
Training and handover
Fixtures and fittings
Goodwill | Business profile: | Currently part of a major regional construction and development group, this is a unique opportunity to acquire an outstanding joinery manufacturer with almost guaranteed on-going turnover.
This business was established by the group initially to fulfil the demand generated by its own building projects – having failed in its own attempts to identify reliable sub contractors who were able to match the high quality of performance set in all the other aspects of its operation – in terms of the quality of work, the timescales and the budgets. The business has now built an excellent reputation for quality workmanship and personal and reliable service with particular emphasis on customer communication – making sure the customer is involved at every stage of the process.
Formed nearly ten years ago and moved to its recently re-developed site in South East London approximately two years ago, this business produces high quality work not only for the construction and development group of which it is a major part but also manufactures in response to projects placed by a whole range of architects, other construction companies, developers and private individuals. Working on a supply only or a supply and fit basis its current order book ranges from a £100 internal door right through to a £130,000 project to supply and replace all of the windows in a local school together will all of the possibilities in between including shop fronts, sliding garage doors, porches, staircases, desks, wardrobes and flooring. At any one time there can be upwards of £200,000 of confirmed orders awaiting production and in excess of £270,000 of verbal orders awaiting confirmation. A vast majority of the work is bespoke – individually designed to Client specification using the business’s CAD facility.
The workshop is fully equipped with a complete inventory of machinery and equipment, the workforce are skilled in expert manufacturing methods, and have built a reputation for stunning workmanship ensuring items are finished to the highest standards. With such an excellent level of service and quality workmanship, many clients return time and time again.
Situated within the Head Office of the construction and development group and although it will be a separate entity, the Vendors wish to maintain a very strong working relationship with the business even to the extent of entering into a formal contract to give it first refusal on any of the joinery projects it generates. Although each project will go out to competitive tender, the business will have full access to all tender responses and specifications received and will have the opportunity to re-price jobs in order to undercut the best submission, ensuring it receives as much work as it wants at a price which whilst still being competitive, ensures a healthy return.
In recent years, turnover for the joinery arm has consistently been in the region of £700,000 - £800,000. Approximately 40 – 50% of this has been as a direct result of projects generated by the construction and development group.
Key Strengths:
The construction and development company to which this business is allied is very well established with an excellent reputation in its field for delivering a quality product on time and on budget. Turnover for the Group consistently exceeds £8m. As such it generates and will continue to generate a significant volume of work for the joinery business. With the opportunity to be the last to estimate a job with full access to the specifications and prices of all other parties, a significant base level of profitable turnover is almost guaranteed. This is an excellent base on which to build further with the new owner generating additional turnover from his or her own business development.
This business has a good, loyal, well trained and highly qualified workforce capable of consistently manufacturing to a very high standard. Many of the staff have been trained as Apprentices in the business. The workshop is new, clean, light, airy and represents some of the best facilities available.
Key Opportunities:
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 there is genuine and demonstrable scope for further growth of the business. Although the Group took the decision to build a joinery operation in-house its real expertise is in construction and development. Not only has the joinery business been able to rely upon the construction side of the business for turnover the management appointed to run it has never driven it to achieve its full potential. It is estimated that it is performing between 15 and 20% below par. With a strong demand for services and capacity to increase turnover, a new owner would contribute fresh ideas and outside influence to build on an excellent base.
Whilst this business has a strong Client base of its own there is significant scope to leverage the excellent reputation it has built up and shares with the construction arm to forge more partnerships with other developers active in the London and South East area and consequently increase turnover substantially.
This business is very much ‘reactive’ – responding to requests for tenders etc. As such it has built up a very significant business based around the full range of joinery products. By pro-actively developing and promoting a specific product or range of products in the marketplace, even establishing its own brand in addition to the tendered projects it currently undertakes, significant additional turnover could also be generated.
Customer Service:
Working closely with clients to fulfil orders and delivering bespoke products of the highest quality on time is the main focus of this business. Doing everything possible to enhance its excellent reputation providing a personal, thorough, efficient and friendly service, every effort is made in order to satisfy the customer's requirements.
This business has expert, highly skilled personnel and offers that most important commodity - reliability. Offering value for money as well as a dedication to customer satisfaction, it has attracted and continues to attract new referrals and maintain an extensive base of very satisfied customers.
Clients:
The extensive client base includes architects, private householders, construction companies, developers, interior designers, public and private companies throughout London and the South East. | Premises:
Located within the Head Office of the Group the joinery business occupies a Ground Floor workshop of 578 square metres with two mezzanine floors of 127.5 square metres and 66 square metres respectively. There is also office accommodation comprising 24 square metres.
The workshop is just two years old and has been re-furbished to a standard befitting that of a major regional developer, providing a well designed space for this business being fully equipped with modem efficient plant and machinery including fixed and portable machines, extractor systems, equipment, benches and stock.
This is a prime location on a rapidly developing business park with easy access to the major motorway network and consequently all areas of the South East but most particularly Kent and Essex.
The premises will be available on a rental basis at an all inclusive cost of £87,500 per annum to include all rates and services. | <>Advertising and Marketing:
With a large proportion of its turnover traditionally generated via the construction and development group and with a well established reputation for high quality workmanship the business has undertaken little advertising, with the exception of Yellow Pages, generating all new business from trade awareness, reputation and the finest form of marketing, word of mouth recommendation.
The joinery arm features within the marketing materials of the Group and on its well designed and easy to navigate web-site. A recent dedicated mail-shot promoting its services to developers and builders was very well received. | | | Financial profile: | The business is 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.
Detailed Management Accounts are available identifying the contribution the joinery business contributes to Group turnover. For the most recent years the turnover has been in the region of £700,000 - £800,000. | Employees:
The directors are responsible for the day to day management of the business, supported by eleven highly trained, well qualified staff including a Chargehand, three joiners, two machinists, two machinist/joiners, a sprayer and a Trainee sprayer.
The total annual wage bill including Employers’ NI is in the region of £250,000. | Support and Training:
The owners will provide full business familiarisation, training and handover as well as contractually committing the construction and development side of the business to offer the joinery business first option on all of the projects it secures. | Reason for Sale:
The Group wishes to free up additional working capital to invest in other construction and development projects. Not having focussed on the joinery arm it is considered that now is the time to relinquish control and place it in the hands of a new owner that can realise its full potential. | | 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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