business for sale

Supplier of Fastening Tools & Consumables Superb on-going development potential

Businesses for Sale

Sale Memorandum

Supplier of Fastening Tools & Consumables
Superb on-going development
potential


Ref.IJ004

Location East Midlands

Asking Price £ 375,000

Confidential offered for sale

Asking price £375,000 +SAV

Asking price includes:
Turnover circa £403,000
Gross Profit 48%
Net Profit available circa £150,000
Superb reputation
Market leading products
Goodwill
Training & Handover
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 highly successful and profitable business was established by the current owners in 1986. Since that time it has developed to become one of the leading suppliers of fastening tools, primarily pneumatic nailers, and associated consumables.

Pneumatic nailers are used whenever timber products are manufactured. They are utilised extensively within the woodworking and construction industries and have specific uses within the production of roof trusses and prefabricated housing and flooring systems.

The business stocks products from some of the leading manufacturers including:

• Hitachi
• Nikema
• Unicatch

In addition electric screwdrivers from Makita are also sold.

Naturally, the supply of consumables, the actual nails, staples and screws used, generate the bulk of sales revenue – this equated to circa 88% in the last year, the balance being made up of the sales and servicing of the tools themselves.

The business enjoys a client base of more than 200 customers and has the added benefit of regular income from major customers with multiple tool installations, taking frequent deliveries of consumables and receiving service.

Customer Service

The highest levels of personal service sit at the heart of the business’s client engagement strategy.

Key Strengths

In the more than twenty years of operation the business has earned a reputation of supplying quality products at very competitive prices. This combined with keeping high stocks of both tools and consumables, has meant that a very loyal customer base has been developed. Some customers have been with the business since it started trading. This has also resulted in much new business being generated through direct ‘word of mouth’ recommendation.

The business offers a high quality servicing operation. Some repairs can be completed on site at customers’ premises: others are returned to the workshop, where extensive repair facilities are available.
Growth and Expansion

To date no marketing or advertising has been undertaken. The business would undoubtedly benefit, however, from the development and subsequent execution of a strategic marketing plan, addressing all media types.

It is considered by the current owners that there is a significant untapped market for the development of an internet based consumables sales business. A full ‘e-commerce’ website can be developed through which both new and existing customers could order stocks of nails, staples and screws. Payment by credit or debit card would ensure that bad debt is avoided.

Key Opportunities

Most new business is currently obtained from clients who are located typically no more than 75 miles from the East Midlands base. With the recruitment of additional sales people, the geographic area can be significantly expanded. This would lead to accelerated growth, yet can be tackled in a pragmatic manner without too much risk.
Premises

The business operates from purpose built light industrial premises of circa 3,000 square feet located in an East Midlands business park. The premises are fitted with racking for storage and the service workshop is co-located. The freehold is owned by the current owner who is happy to grant a lease. Alternatively the business could be readily relocated. The office is located at the current owner’s home.
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 no borrowing. High gross and net margins are enjoyed and the business has shown consistent performance since trading begun. Turnover to 31st December 2006 was £403,000 with a gross margin of 48% and net profit available for distribution of circa £150,000.
Employees

The business is run by the current owner who is the general manager and is responsible for purchasing and some sales activity. One dedicated sales executive is employed who has been with the business for more than six years. One further person is responsible for deliveries and servicing. In addition, a part time bookkeeper is utilised.
Support and Training

The current owner will agree to a period of training, handover and familiarisation to ensure a smooth transition to new ownership.
Reason for Sale

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further significant growth potential.
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]