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Well-established, Versatile & Profitable Recruitment Agency

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Sale Memorandum

Well-established, Versatile & Profitable Recruitment Agency


Ref.CE081

Location Surrey

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:

Projected turnover for the 2005/6 financial year approximately £250,000
Gross margins of 40%+
A well-established and profitable recruitment agency covering almost all sectors
Reputation for honesty, reliability and integrity
Diverse, established and loyal Client base
Permanent and temporary placements
Well-suited leasehold premises
Excellent growth opportunities
Complete Turnkey Operation
Exclusive catchment area
Local and national briefs
Candidate base 3,000+
Training and handover
Advertising
Goodwill

Business profile:

Established in 1999, by its two current Owners, this successful recruitment agency provides both temps and perms to a wide range of Clients operating across a number of sectors including the commercial, industrial, academic and retail arenas as well as the public sector.
Despite operating in an area of Surrey within easy reach of a number of quite large commercial centres this business has little or no direct competition locally and therefore has the pick of the large number of organisations located on the Business Parks and Industrial Estates that are within easy striking distance. As virtually the only operator within a fairly large catchment area this business has developed a very flexible approach to its business – able to offer high quality candidates across all areas of expertise with the only exceptions being Nursing and Care. Not surprisingly the Client base is quite diverse but very impressive – over two hundred companies have used the services of this business at some stage, including some of the biggest companies in the UK. The candidate base is equally impressive – with over 3,000 currently registered with this business and approximately 300 – 400 live candidates at any one time.
Building on the knowledge and expertise developed during very successful careers with Reed Recruitment and Office Angels respectively, the Owners of this business provide a honest, straightforward and high quality service. The Company proposes only the most suitably qualified candidates and provides the highest quality of service at cost effective rates. Having established an excellent reputation for consistently supplying reliable and competent staff, this business very rarely comes away from an introductory meeting with a Client without some kind of a brief.
With such a high quality service, this business is frequently taken by the Client personnel teams it works with to new companies, as they themselves move on to new appointments. As a result this business supplies staff not only within the local area but also to Clients all over the South of England – and is frequently called upon to fulfil national recruitment briefs.
With projected turnover in excess of £250,000 for the financial year ending March 2006 and gross margins in excess of 40% this is an excellent opportunity to acquire a versatile recruitment business operating cross a diverse range of sectors in a very exclusive catchment area.
Key strengths:

This well-established business has minimal local competition. It has developed an excellent reputation for providing a quality service. Built from the knowledge and expertise gained by the Owners from successful careers with two of the UK’s biggest ‘players’ this business combines the efficiencies, systems and processes of the bigger operators with the personalised and flexible approach that only a small independent can offer. This is a combination highly sought after by the loyal Client base of this business, a varied portfolio of established blue chips – and an approach that results in strong word of mouth recommendations.
This business thoroughly vets all potential candidates before placing them before a Client and prides itself on only proposing candidates that it knows fulfil the required criteria.

Key opportunities:

This business is located in an area undergoing considerable development at present – both of a commercial and residential nature. A major Business Park currently under construction will bring a huge volume of new potential Clients into the area and the residential developments will generate a large influx of potential candidates. As the only operator in the area this business is ideally placed to take maximum advantage of this inward investment.
This business is currently operating at capacity with the staff resources it currently has at its disposal. There can be no doubt that by recruiting an additional Consultant and an administrator, resources would be freed up at a more senior level to target business development within the local marketplace where there is significant scope to increase the Client base, turnover and profitability. 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.
Premises:

This business operates from very well suited premises of approximately 800 square feet. Well equipped and furnished, the office comfortably accommodates four workstations. The standalone building also has a kitchenette and bathroom. Slightly off the main High Street, candidates have to make a point of visiting the premises – ensuring all those that come through the front door are genuine - reducing the time spent by Consultants on those that pop in ‘on just a whim’.
The premises are currently rented at £450 per month with Rates of £984 per annum. It is understood that a formal lease could be arranged if required.
Marketing and advertising:

This business has taken an innovative approach to building awareness of it and the services it offers having used bus advertising as well as advertising in local hospitals, wine bars, hotels, supermarkets, school books as well as local press and in particular the free distribution lifestyle magazines in the past. In addition the business also produces a list of current vacancies for distribution from a leaflet holder positioned outside the office and has also distributed leaflets from local stations and in the High Street in the past.
This business has also developed excellent relationships with the local Job Centre which frequently refers candidates and the occasional vacancy. By far its most cost effective advertising however, is the significant word of mouth recommendation this business enjoys from its extremely loyal Client and candidate bases.
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 the interested parties under the auspices of Turner Butler.
The projected turnover for the year ending March 2006 was £250,000 with a gross margin in excess of 40%.
Employees:

The two founding partners and current Owners are the only employees and are jointly responsible for all aspects of the day-to-day operation of the business.
Support and training:

The owners will provide full business familiarisation and training at least on a short-term basis to ensure a smooth transfer of the business to new Owners.
Reason for sale:

The Owners wish to spend more time with their families.
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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