business for sale

Electrical Motor Repairs - Industrial

Businesses for Sale

Sale Memorandum

Electrical Motor Repairs - Industrial


Ref.IG009

Location Teeside

Asking Price £ 900,000

Confidential offered for sale

Turnover for last year was circa £633,000 with Goss Profit circa £208,000.

Asking price includes:

Profitable growing business
Blue chip repeat customer base
Highly skilled workforce
Specialist repair service to the petrochemical industry
License holders for the repair of flameproof motors.
All stocks
ISO 9001:2000
Huge growth potential
Low overheads
All machinery and tools
3 vehicles
Leasehold premises
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:

Started in 1999, this business has steadily built up an impressive list of Blue Chip customers who continually return to use their superb service. In 2000 they were runner up in the “Best New Business “ award for the area.

Specialising in repairing motors for the petrochemical industry, or any other industry who uses flame proof motors, the company have an enviable reputation in this field of work..
Hazardous area equipment needs to be serviced and repaired by qualified “Armature Winders”. The company prides itself on having four qualified license holders able to work on flame proof motors. This is a qualifiaction which enables the business to handle such equipment.

The location in Teesside is excellent as there are a host of companies needing such a specialised service and handle a full work load from existing clients.

One of the companies key strengths is the way that they can carry out in house mechanical reapirs to motor shaft and components instead of subcontracting them out. This saves not only time, when the machine is idle until repaired, but also saves money. This is a cost effective and quicker way of repairing the motor which is well appreciated by their customers.

Equipment:

Centre lathe (With metal spraying equipment)
Fork lift truck.
Stoving oven
Test Panel (For testing of AC/DC motors to 350Kw etc...)
Coil winding machinery
Specialised measuring equipment for the repair of flameproof motors
Steam cleaner
Basic computer system
3 Motor vehicles: 2 pick up type (One fitted with Hiab crane) and 1 van
Assortment of hydraulic bearing and pulley removal equipment
Insulation guillotene
Many hand tools.
Key Strengths:

This is a complete repair service for hazardous area and safe area electric motors and transformers. With a skilled workforce who can offer a cost effective and speedy way of repairing equipment, it means that machines are dormant for as little time as possible, thus saving valuable production time.

Many spare parts are kept on the premises for a range of different make and types of motors, a vast range of flameproof spares are also held to ensure a quick turnaround is achievable 24 hours a day. In the event of a motor being un-repairable a large stock of new motors is also held, including a full stock of flameproof motors.

Another major strength of the company is they have been appointed the authorised repair agent for the North East for one of the worlds largest manufacturers of electric motors.

The company has been awarded ISO 9001:2000 since March 2000.
Growth and Expansion:

This unique and skilled business has been working flat out for the past three years. Therefore there has been no new business sought or taken on.

There is considerable scope for growth with clearly identified means to achieve this. Investment in employing additional skilled staff would enable the new owner to take the business forward to its next level. The present owner suggests that there are many companies within the immediate area that have not been contacted. The business has huge capabilities for expansion with the obvious benefits of increased turnover and profit that could be achieved simply by gearing service/operations in line with current market demand.

This is a highly concentrated industrial area and within a short radius of the factory there are many companies who would welcome this service.
Premises:

The premises are situated on a busy industrial estate and comprise of a well equipped workshop with a small administration office. There is also a mezzanine floor where a staff canteen is located. In total the premises measure circa 2,600 sq ft.

Lease costs are £12,000 per annum with service charges (Local rates) of £3,500 per annum.
The lease expires in May 2008, the current owner advises that the landlord is happy to re-negotiate the lease.

Security:

The building is secured by a monitored alarm system and Red Care security is fitted to the telephone line, additioinally there is manned security on the esatate at night and weekends.
Advertising and Marketing:

Very little marketing has been carried out in the last five years. The buisness is operating with a full order book and a steady stream of work.

The owner recognises that investment in updating the company website would encourage new prospective clients to look at the business model. A targeted sales drive in the local area would alert prospective customers to the highly skilled service this business can offer
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 for last year was circa £633,000 with Goss Profit circa £208,000.

There are also stocks, assets and work in progress to be taken into account plus the goodwill of the business.
Employees:

At present there are 8 employees. Four are highly skilled armature winder/ fitters with specialised licenses to repair flameproof motors, essential in this industry
Support and Training

The owner would be happy to assist the new owner with any training and handover required to ensure a smooth transition.
Reason for Sale:

The owner would like to pursue other 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

If you are interested in finding out more about this business please:

  1. Click here to generate the Confidentiality agreement with your details
  2. Print the confidentiality agreement
  3. Sign the confidentiality agreement and fax each page of the document to 0870 432 3611
  4. We will contact you and put you in touch with the seller of the business.

[back to businesses for sale] [return to top]