business for sale

Highly Profitable Health Food Snacks Company

Businesses for Sale

Sale Memorandum

Highly Profitable Health Food Snacks Company


Ref.EK011

Location South West

Asking Price £ 1,000,000

Confidential offered for sale

Asking price includes:

2007 turnover of £1,022,786
Profits before tax of circa £274,000
Sales that are growing year on year
Established client/customer base
Fantastic collection of sampling
Computer administration system
Excellent opportunity to grow
Office furniture and equipment
Superb supplier partnerships
Wide range of products
Extremely lucrative margins
Strong advertising base
Award-winning business Informative Website
Training and handover
Excellent premises
Sterling reputation
Sign-written vans
Advertising
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:

This estabilshed and highly profitable business was formed by its directors in 2003. They had realised that the majority of snacks available to be purchased in the workplace fell into the junk food category. Due to increased media activity there was a fast growing public awareness of the need to eat a balanced and healthy diet. They decided to establish a company that supplied a comprehensive range of healthy snack foods direct to the workplace. The operation also has a separate range of products for those customers with a sweeter tooth.

The idea was an instant success with the first year seeing a turnover of over £750,000. Subsequent years have seen consistant strong growth with 2007 achieving sales of £1,022,786. The company is now perfectly positioned to achieve its next objective of £1,200,000 in 2008.

Equipment:


The products are supplied in self service style snack boxes which are positioned in high profile areas within the companies premises. No single item cost more than one pound. Distributors collect the cash and restock the boxes on a regular basis. The snacks are delivered in high profile well sign-written vans.
The company provides an excellent selection of healthier snacks as well as confectionery. Products include company branded packets of:

Mixed Fruit and Nuts
Dried Apricots
Cranberry Mix
Rice Crackers
Dry roasted peanuts
Cheese Baguettes
Jungle Mix
Yogurt Flavoured Raisins
Milk Chocolate Coated Peanuts
Spicey Rice Crackers
Customer Service:

Prospect client companies are keen to have these products in their workplace as it indicates a positive attitude for the well being of their staff and purchases can be made on-site
Boxes are refilled on demand and regular feedback is taken to consider increasing the range of products.

Key Strengths:

The company has no borrowings.
Consistent strong growth
Target growth has been consistently achieved year on year.
Excellent cash flow
Unique sales proposition.
Strong growth market
Huge Potential
Controlled overheads
Excellent supplier base
Superb distribution channels
A well organised and straight forward company to run
Products are delivered direct to distributors by suppliers

Growth and Expansion:

This business can be grown to nearly any size covering the whole of the UK and Europe. The present target customer is quite simply any business with staff, this could be expanded into retail outlets, health clubs, pubs, leisure centres and hotel chains.

There is the opportunity for an additional revenue stream by creating its own import, packaging and distribution arm.

The business is also active in increasing its range of available products such as muesli bars, flapjacks, drinks and biscuits.
Premises:

The company trades from a modern, well-appointed office block on a small trading estate. The premises consist of six well-lit and spacious offices totalling 1,000 sq ft. held on a 3 year lease at £14,000 pa. There is adequate parking.

An additional small storage unit is rented in the locality.
Advertising and Marketing:

The business has a web site and every distribution vehicle is branded and sign written.
Financial profile:
All financial information will be supplied under the auspices of Turner Butler.
Turnover for 2007 was £1,022,786 with £274,414 profit before tax. Net assets will be in the region of £125,000.
Project sales for 2008 are £1,200,000.
Employees:

The two key directors have invested in building a strong management team. This consists of:

Business Development Manager
Office Manager
Distribution Manager
Distributors
Consultant Field Managers
Receptionist and Admin Assistant
Support and Training

There will be a full and seamless handover of the business for a period to be agreed as part of the overall negotiations. The presence of an established management team will make this transitional period all the easier to achieve.
Reason for Sale:

Having built the business to its present position the directors now wish to retire.
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

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