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Electrical Engineering Business

Businesses for Sale

Sale Memorandum

Electrical Engineering Business


Ref.IG010

Location West Yorkshire

Asking Price £ 595,000

Confidential offered for sale

Turnover for 2006 circa £352,000
Gross Profit of £173,000.

Asking price includes:


Database of repeat blue chip companies
ISO 9002 & Benchmark Diamond Award
Client testimonials
Specialist service in problem solving
Highly skilled & qualified workforce
Bespoke software
LEASEHOLD Workshop/factory premises
Work in progress
All machinery, tools & vehicles
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:

For the past fourteen years this business has steadily built up its customer base to its current enviable position, having now obtained a reputation with some of the worlds best known companies for the quality of work and customer satisfaction.The business is proud to offer a “turnkey” solution for any problems that might arise in the electrical engineering field.

The company provide a breakdown and maintenance service for a variety of different industries.

Through consultation and experience, the business solve most problems on site, but if necessary can be taken to the factory where collectively most problems can be resolved.

As well as the breakdown and maintenance service the company are also experienced in electrical design, panel building and retro fits.

The company runs a sophisticated computer system with bespoke software written for the electrical engineering industry, this gives access to drawings, photographs and parts information for projects.

The majority of contracts are in the UK but there is a growing amount of overseas work being obtained.

Quality and a high standard of work iscarried out by competent staff, all of whom are fully qualified and highly skilled with superb technical knowledge.

Key Strengths:

The ability to be able to problem solve is essential, and the vast experience the company has gained working over the years with many different machines has given the company a distinct commercial advantage. Simply, whatever the problem is, this business can provide the answer.

Satisfaction is imperative, and the company are prepared to work beyond the normal course of duty to make sure that the customer is completely happy. They are known by key industry players as “ A good reliable engineering company”. This has been earned by their good response time to customers breakdowns, and their ability to troubleshoot out any problems.

During a recent independent survey of the company by “Benchmarque”, the company was rated @ 92% for customer satisfaction,whilst the mark for the staff was @ 97%. This translated into a “Diamond” award for the company. They are also ISO 9002 accredited, and have received other testimonial letters from their clients as to the overall satisfaction of the companies high standard of work.
Equipment:

All fixtures and fittings, tools and intellectual property belonging to the company are to be sold as an ongoing business. Also included are;

Four Astra Vans
Two Battery Operated Hydraulic Pallet Trucks
Pallet Racking
Compressor
Cad System and Diagrams
Bespoke Engineering Software

Growth and Expansion:

The company has been run efficiently with very few periods when the workforce have not been working flat out. Investment in extra staff would be a distinct advantage, as sometimes jobs have to be contracted out due to excessive work load. Currently all mechanical work is sub contracted out so there is an opportunity to employ a mechanical engineer, which would increase the profit margins on individual jobs.

Whilst the company are always kept busy with existing clients , there is also a tremendous amount of work which could be obtained should the new owner employ a dedicated sales person or agent.

The companies reputation and performance could easily attract further business if these investments were to be made.
Premises:

There is a modern warehouse/factory, circa 3,500 sq.ft with workshop area, offices and loading bay. The offices have gas central heating installed.

The premises are leasehold and the present owner informs us that the landlord would be happy to re- negotiate the lease.

Lease is circa £12,000 per annum, with service charges, including rates, of circa £3,000 per annum.
Advertising and Marketing:

There is a website for the company, plus they mail out calendars, pens and diaries to their customers annually to promote the company. They are also locally involved in the sponsorship of sports teams.
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 all interested parties under the auspices of Turner Butler.

Turnover last year was £352,000 with a Gross Profit of £173,000.
Employees:

The current owner is a qualified electrical engineer. The company also employs a General Manager, who works on site a software/electrician, an electrical engineer, one apprentice engineer and a part time bookkeeper.
Support and Training

Full support and training will be on hand for a period of time to be negotiated prior to the sale.
Reason for Sale:

The owner wishes to emigrate
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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