business for sale

Human Resources, Recruitment & Career Counselling Services

Businesses for Sale

Sale Memorandum

Human Resources, Recruitment & Career Counselling
Services


Ref.CE115

Location London,Central

Asking Price £ 98,000

Confidential offered for sale

Asking price includes:

Turnover circa £200,000
Circa 50% gross profits
Long established
Sound reputation
High growth market
Clients within consumer & corporate markets
Goodwill
Training & Handover
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 long established business was founded in 1965 to address the needs of individuals in assessing their career options. Under the ownership of the current owner for two years, the range of services has been expanded - the company is now a full service career counselling, recruitment (search & selection) and Human Resources (HR) consultancy.

Operating from offices in Central London, the business serves both individuals seeking career advice and corporates who may require specialist services on a specific activity. This may include, for example, redundancy planning, retention and development programmes and/or recruitment profiling and selection. In this last activity the business has built a strong reputation in a short period of time having recently won Tier One preferred supplier status at a large and well known organisation.

In common with similar businesses, the company has a small employed staff of two persons, one of whom is the owner. The majority of the team are associates, being employed to undertake assignments on a self employed basis. This team currently consists of twelve persons, of which four are occupational psychologists: they are all very well qualified, with most having second degrees and professional qualifications.

The wish to work on the start up of another company creates a rare opportunity for a new, knowledgeable owner/investment team to take this solid business on to the next level. There are considerable opportunities for expanding the company's revenues and profits through marketing efforts targeting new prospects.


Customer Service

The highest levels of personal service sit at the heart of the business’s engagement strategy.


Key Strengths

The company is a corporate member of CIPD, the Chartered Institute of Personnel and Development, and BPS, the British Psychological Society. This provides for the right amount of professional comfort in the minds of clients, both individual and corporate.

The business is able to deliver the full range of services demanded by modern organisations. Historically, most services have been delivered to SMEs or larger organisations with a small personnel footprint. However, recent new business wins have shown the desire of larger enterprises to utilise smaller, niche suppliers with specific expertise. This model can now be exploited further to accelerate growth.

Individual clients use the company’s services at different times within their careers. This occurs typically as school leavers, when job changing especially in the early years of a career, and in the 30s when considering a career move. Much repeat business is generated this way.
Growth and Expansion

The company has reached the stage where the investment in a sales team, specifically focussed on winning new business, would be worthwhile. This could commence modestly, with perhaps one experienced person, with the view to expansion as new contracts are won. Specific targeting of medium size businesses would increase the average value of contracts.
Premises

The business occupies very good Central London offices of circa 700 square feet. They are held on a five year lease expiring in February 2012 on a passing rent of £22,000 per annum. The lease features a one year notice period which can be exercised at any time. Business rates are circa £5,400 per annum.
Advertising and Marketing

The company has always recognised the importance of a strategic approach to advertising and marketing. A professionally designed, maintained and hosted website serves as the main ‘shop window’ to the business. Google™ Adwords are another major source of new business opportunity.

PR is effectively used as a new business tool. The following list analyses main sources of new business leads:

• Word of Mouth recommendation – 60%
• Google™ search or through Adwords – 25%
• Repeat business from existing clients – 8%
• PR – 7%
Financial profile:
The business is being offered for sale on an ongoing 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 and enjoys high gross margins. The current turnover is circa £200,000 per annum.
Support and Training

A period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.
Reason for Sale

The current owner is looking to dispose of his interest in the business to enable him to work on a start up opportunity elsewhere.
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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