business for sale

Famous, Bespoke Loudspeaker Retailer, Manufacturer & Repairer

Businesses for Sale

Sale Memorandum

Famous, Bespoke Loudspeaker
Retailer, Manufacturer & Repairer


Ref.IF003

Location Midlands

Offers Invited

Confidential offered for sale

Asking price includes:

Unique business
Long established
Famous brand
Highest quality components
Export & Home market
Well developed e-commerce website
Consistent performer in trade product reviews
Readily relocatable
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:

This is a unique opportunity to acquire this famous loudspeaker retailer, manufacturer and repairer. The business was originally established in the early 70’s and was acquired by the current owners some ten years ago.

The business offers three major service/product lines, namely:

Loudspeaker Drive Unit Sales & Repairs
Loudspeaker Component Sales
Loudspeaker Sales – complete & in kit form

The core of the business is the sale and distribution of drive units, this is coupled with a comprehesive range of loudspeakers, starting with small bookshelf designs, through medium sized stand-mount models and right up to larger floor standing units, utilising some of the world’s leading drive units. The sound is quite remarkable and offered at unbeatable prices when compared to similar models from companies such as Proac, Sonus Faber and PMC.

Over the recent past the business quickly recognised the need to develop a website offering full e-commerce facilities. This is professionally developed, maintained and hosted. In the current financial year circa 60% of total revenue is generated via the website which receives over 45,000 hits per month: the balance comes through the retail shop. This is therefore a classic ‘clicks & bricks’ business.

The establishment of the internet capability has enabled the company to increase its export sales. These currently account for some 10% of revenue, with the Far East & the USA being the major focus.

Revenue as a percentage of total is currently generated as follows:

Loudspeaker drive unit sales & repairs – 64%
Component & accessory Sales – 14%
New Loudspeakers – 22%

Circa 3,000 sales orders are fulfilled per annum.

Equipment

Two, fully equipped demonstration suites are utilised to test and ‘run in’ loudspeaker equipment. This is important as frequently clients will want to hear loudspeakers performing with their preferred music or even with their own amplifiers.
Customer Service

High levels of personal service sit at the core of the company’s business strategy. Much time will be spent with clients to establish their precise requirements prior to the commissioning of work.

Key Strengths

The business has developed a reputation as the leading independent company in the relatively small loudspeaker market. It is known for using the very best quality components: supply of these components has become a significant business in its own right. The ever increasing export market ensures that the business will be immune from economic downturn in certain geographies.

The business enjoys a very low level of and almost no bad debt at all. This is largely because payment is made at time of order rather than after delivery.
Key Opportunities

The move to home cinema systems is opening up an exciting new market area for the business. The introduction of High Definition TV (HD), with the follow on of ‘Blu-Ray’ and HD-DVD, will inevitably increase the demand for similar quality loudspeaker systems. The company is perfectly positioned to capitalise on this.

Furthermore, to date the business has primarily focussed on the end-user/consumer market place, although organisations including the BBC, MTV, the Royal Opera House, the Ford Motor Company & numerous recording studios have purchased the company’s equipment. The hi-fi shop market represents a great new sales growth opportunity that to date has not been exploited.

The further development of the website to include foreign languages especially Japanese, Korean, Mandarin and Cantonese as well as French, German, Spanish & Italian would undoubtedly lead to an even speedier growth in the export market.
Premises

The premises are held on a lease expiring in 2013 at a passing rent of £8,400 per annum. The landlord has indicated that he may consider an early surrender: this would make the business readily relocatable to any location in the country.

Business Hours

Current retail business hours are:

Monday to Friday 9.00am to 5.00pm
Advertising and Marketing

Some advertising in enthusiast magazines does take place: more could be placed. Occasionally the company will take a stand at exhibitions.
Financial profile:
The business is being offered for sale on an ongoing concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business is financially stable with low levels of borrowing and enjoys much repeat business from a very satisfied client base. The current turnover is circa £250,000 per annum.
Support and Training

The current owners will be happy to agree to an extended period of handover and training to ensure a smooth transition. This will also guarantee continuity of service to the customer base.
Reason for Sale

This is a genuine retirement sale. The current owners are approaching retirement and are looking to reduce their time commitment to business.
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

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]