business for sale

Supplier of Power

Sale Memorandum

Supplier of Power Cleaning Equipment and Consumables


Ref.

Location West Country

Asking Price £120,000

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

Work in progress, material stocks, tools and machinery
Sales of circa £130,000 per annum
Established client/customer base
Computer administration system
Excellent supplier partnerships
Excellent opportunity to grow
Office furniture and equipment
Complete Turnkey Operation
Sales growing year on year
All plant and machinery
Re locatable Business
Training and handover
Good profit margins
Excellent reputation
Goodwill

Business profile:

Based in the heart of the West Country this power cleaning business was established by the present director. It has consistently grown year on year and has established an excellent reputation with both its clients and suppliers for reliability, quality of service and integrity.

What it does:
The primary function of this business is the sale and supply of a broad range of steam cleaning equipment and consumables to the haulage, road transport and farm contracting industries.
Uniquely the business does not have to hold a stock of equipment beyond that used for demonstrations. All the machinery is made on demand and is manufactured and delivered within three to five days of the order being received at the UK based production plant. The equipment is then delivered to site and commissioned. The larger machines are installed by being bolted to the walls or floors of the client’s premises prior to being fully tested.
This high quality equipment all carries a twelve month parts and labour guarantee.
The subsequent on going supply of cleaning fluids is a significant and valuable part of the company’s revenue. The fluids are manufactured to their own specification and manufactured in the UK carrying the company’s brand label. Delivery volumes vary from twenty-five litres for the smaller operator to one thousand litres for the larger user who will also have purchased holding tanks to store the fluids. The business does have a small storehouse that carries a stock of four thousand litres for immediate dispatch.
Supporting the core business is a busy and profitable steam cleaning business carrying out regular work for a base of clients in the area. There is a constant forward order book for their services for two months in advance. This is supplied by one bus company, two main HGV main dealers, and suppliers of tractor units, trailers and tippers. This is a fixed price operation. All units are collected from site by the company’s sole employee; the units are thoroughly cleaned, inspected and returned.
Location:

This operation is established in the heart of the West Country within easy travelling distance of several major towns and cities. It would be a very straightforward process to move the business to a location of the buyer’s choice.
Clients:

The business operates within an eighty-mile radius of its base and currently has a database of around two hundred existing customers.

Customer Service:

Client service is never more important than when operating in a rural environment where good news travels fast but bad news travels faster! The personal relationship between business and client is critical and levels of service ensure a plentiful supply of referrals and repeat business.


Key opportunities:

A simple sales strategy would launch this operation into the next phase of its development. There is presently no advertising at all and the business does not have a web site.
A consistent presence in key trade journals, local papers and free editions would raise the profile of this operation to a new level. The addition of a small, carefully chosen and correctly motivated sales team selling both equipment and cleaning chemicals would expose new markets, additional clients, and therefore generate significant ongoing revenue.


Quality Assurance:

All equipment carries a full twelve month parts and labour guarantee. The company carries out all installation work of the larger pieces of equipment.
Technology:

There is no specific technology required to run this business successfully.


Competition:

There is no real active competition in the area

Management and staff:

The business has one employee who carries out the contract cleaning work.
Financial profile:
This business is being sold on an on going basis. All financial information will be made available under the auspices of Turner Butler. Turnover for 2006 will be in the region of £130,000. It should be noted that gross margins on machinery are in circa 20% with consumables enjoying a margin of 100%. In 2005 86,000 litres of consumable were supplied.
Support and training:

A full and seamless handover will be available as part of the sale process. The owner is very keen to ensure that the new owner has a full understanding of all aspects of this business
Reason for Sale:

This is a very busy operation that has exceeded the expectations of the owner. The main reasons for sale are twofold. The business is now much too busy to be managed by one key individual and in order for it to take the next step in its natural growth pattern a sales person and additional delivery staff may have to be considered. This is not a desirable objective for the present owner who has plans to move to Scotland to pursue other commercial ventures.
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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