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Well Established & Reputable Electrical Engineering Company

Businesses for Sale

Sale Memorandum

Well Established & Reputable Electrical Engineering Company


Ref.IG006

Location County Armagh, N Ireland

Asking Price £ 235,000

Confidential offered for sale

Asking price includes:

Current turnover of £590,000 p.a..
40 years of successful trading
Reputation for reliability, quality, integrity and professionalism
Qualified and experienced team of loyal electricians
Commercial and industrial clientele
Longstanding repeat client base
Leasehold premises available
Excellent expansion potential
Growth year on year
Plant and equipment
ISO9001 Registered
ECA Accredited
NICEIC Membership
Fully re-locatable
Support and training
Excellent cashflow
Goodwill
Stock
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:

Founded back in1968 this family run business represents an excellent opportunity to acquire a very well established and reputable company that is achieving on-going growth rates with low overheads , excellent profit margins and an impressive client base. This long standing and reputable electrical contractor specialises in providing top quality services to in the main the building trade, commercial and industrial market place. The operation has gained extensive knowledge of a wide range of installations within this arena and also carries out on site testing and maintenance for customers. Situated on the outskirts of a large and busy town, this business services predominantly the commercial sector but there is no reason why a new owner could not diversify its services to include domestic and emergency call out if so required. The customer base is something to be proud of with many clients having long term relationships with the company ensuring excellent future revenue streams and continuity for a new owner.

This business installs and maintains all kinds of electrical equipment and has experience in every aspect of its sector and a reputation for being both proactive and pragmatic in its approach to projects. This approach has been developed from some 40 years successful trading. Working from well positioned premises the company has an experienced team , handling projects from minor works to major contracts. ECA approved and NICEIC accredited this trusted and recognised business provides its range of electrical services to a very loyal and established client base. Because of its proud and distinguished reputation this business is always in demand and never short of work.

Throughout its life to date , this business has built up an enviable reputation for providing reliable and knowledgeable services to its customers with high levels of after sales service to ensure the job is done as per the clients specification. The staff understand the importance of the services they provide and it is this detail, as well as the consistent high quality of work, that ensures the business maintains its impressive long-term client relationships at the same time attracting new clients .This business’s commitment to quality is highlighted through the various accreditations it holds. All work is carried out to the highest standards with all materials and accessories quality approved and compliant with the relevant BS codes, as you would expect from an ISO9001 registered company.All staff are highly qualified, professional yet friendly and take pride in their work. This ensures the job is always completed to meet the most stringent customer requirements.

With turnover for the 2006 financial year £590,000 generating gross margins of approximately 24% this is an excellent opportunity to acquire a mature and well organised profitable, electrical contractors with a very significant customer base. The business has achieved significant growth over the last few years and a new owner, bringing fresh ideas and new levels of energy and business strategies to the business should easily be able to continue this growth pattern whilst maintaining the current infrastructure of the business.
Key Strengths:

This business is very well known and has established a superb reputation for quality and diversity of work, high levels of client service, reliability and knowledge since its inception back in 1968. The business has excellent long term staff who take pride in their work.

With such an excellent reputation this business is constantly in demand. It prides itself on its ability to respond quickly and effectively to customers needs . Consequently this business can boast an impressive and long standing range of clients and is never short of new opportunities.

This is a very stable and well run business with a huge knowledge bank built up through its time in the market and experience to date. It has been well managed throughout its many years of operation and continues to thrive in a competitive market place. The business is ISO9001 compliant.

Key Opportunities:

The business has an enviable reputation within the industry and area. This reputation alone represents a new owner with a vehicle to expand the company’s operation further in its existing markets and to target new areas of work, be it commercial, domestic or emergency call out to name but a few. With consistent demand for its services, combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources will have every advantage of building on an excellent platform and taking this business through its next period of sustained growth.

The business has never really had to advertise or “sell” its services to date, with most work coming through referrals and repeat business. The local economy is currently experiencing huge levels of re-development and a more aggressive sales approach would certainly have a positive effect on sales.

Plant and Equipment:

This business is well equipped as would be expected for an operation of this scale. Items include the latest test equipment, tools, ladders, drills etc. The business also carries a stock of essential consumables.

Quality Assurance:

The business is registered through the NICEIC (National Inspection Council for Electrical Installation Contracting) and is a member of the Electrical Contractors Association. It also has Joint Industry Board (JIB) and Construction Line membership as well as being a member of the Federation OF Small Businesses. Furthermore the business has long established ISO9001 accreditation. All these approvals and accreditations are testament to the emphasis the business puts on quality assurance.
Premises:

The business operates from effective leasehold premises on a main road within the local town some 300 metres from it’s centre. The unit comprises 2 offices comprising some 50 square metres and a store of approx 140 square metres. There is also a yard with an approximate area of 168 square metres. The yard has gated access and the buildings are secure. A new lease would be made available to the new owner of the business should they require it.
Advertising:

Having established an excellent reputation for quality and reliability over a 40 year period the business has had little need for advertising to date relying on the most cost effective form of marketing, word of mouth recommendation. However it does have an informative company brochure it is able to furnish clients and prospective clients with should they so require.
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.

Turnover for the last financial year was £590,000 with gross margins of approximately £140,000.
T
he business has low overheads and positive cash flow.
Employees:

Besides the vendor there are 13 full time employees within the business.

•5 Approved Electricians
•1 Electrician
•1 Technician
•5 Trainees/Apprentices
•1 Secretary/Book-keeper
Support and Training:

The owner will provide full business familiarisation, training and handover as required to ensure a smooth transfer of the business to new owners.
Reason for Sale:

The owner wishes to pursue his other business interests.
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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