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Exemplary, Profitable Engineering Company

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Sale Memorandum

Exemplary, Profitable Engineering Company


Ref.IH012

Location Dorset

Asking Price £ 495,000

Confidential offered for sale

Asking price includes:

Work in progress, material stocks, tools and machinery
Qualified and highly skilled technicians
Sales of circa £525,000 per annum
Wide range of products and services
Extensive investment in technology
Un patented technical know-how
Established client/customer base
Excellent supplier partnerships
Superb opportunity to grow
Office furniture and equipment
Complete Turnkey Operation
Large amount of equipment
Blue-chip client base
All plant and machinery
ISO 9001 certification
Excellent reputation
Good profit margins
Excellent premises
Prime Location
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:

The company was established in 1976 and has remained consistantly busy ever since out performing and outlasting many of its competitors.
It specialises in providing engineering services to the Retail Motor Industry, the Armed Forces and Defence Logistics Organisations.
It carries out all forms of repair and refurbishment work from cylinder head work, rebores, crank regrinds, pressure testing, and crack testing to complete engine overhauls.
It also holds the agencies for two key engine re manufacturers Ivor Searle and Vege.

Equipment:

The business has a very comprehensive list of high quality equipment:
Two Tetroc Headsman Insert Borers
One Sunnen Insert Borer
One Lions Shim grinder
One Sioux Valve refacer
Two Mira Valve seat Refacers
One excel shim grinder
One Kwik way Valve Refacer
One Sealey Degreaser
One Norman Butter Welder
One Migtronic welder
One D Hadley ceramic tank
One Zanrosso Queen Con Rod Borer
One Amco Con Rod Borer
One AMC Boring machine
One Schou Line Borer
One Zanrosso Disc grinder
One Abwood Tool grinder
One Brooks Linisher
Two Piccinotti Pressure testers
One Zanrosso Brake Drum lathe
One Prince Crankshaft Grinder
One Tetroc crack detector
Two van Norman Boring Bars
One Rottler cylinder head refacing machine
One engine test cell used for testing and calibrating engines under load.
Plus a variety of other machines, tools and equipment.
Company vehicles
Customer Service:

This is where the business has built its reputation. Customer service is second to none, Each and every job involves a significant level of customer contact during the repair refurbishment process.

Key Strengths:

High profile location on a key industrial site
The owner has built up a very strong team of management and staff that allows the business to run very successfully on a day-to-day basis without the need for his presence.
Top flight, long serving works manager
The company is ISO9001registered
They are a member of The Federation of Engine Re Manufacturers
All engines carry a twelve-month warranty
Written contracts with Defence Logistics Organisations and the Army Branch Repair Organisation.
A long-standing written contract with the Army is in place until 2010 with a real opportunity for further growth.
Consistent levels of work
Database of six hundred clients
One hundred regular clients
No real competition in the area
Premises:

A well presented business premises with ample parking to the rear of the premises. The workshop and offices cover a total of 5000sq ft. A lease is available at an annual fee of £25,000
Advertising and Marketing:

The company has some point of sales material, and occasionally carry out mail shots and newsletters to potential customers in the area. The business also has its own web site.
Financial profile:
All financial information will be made available under the auspices of Turner butler and subject to the usual letter of confidentiality being signed. The business has a turnover of circa £525,000 with gross profits being in the region of £165,000. the company is consistantly profitable.
Employees:

One works manager
One Assistant clerk (part time)
Four workshop engineers
One driver
One secretary
One accounts clerk
Support and Training

Having built the business to what it is today the proprietor is very keen to make sure that a new owner receives the very best of handovers.
Reason for Sale:

The owner has decided to take early retirement
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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