business for sale

Timber & Builders Merchant Supplier of timber, plaster board, fencing and heavy building materials

Businesses for Sale

Sale Memorandum

Timber & Builders Merchant
Supplier of timber, plaster board, fencing and heavy building materials


Ref.EL005

Location London, North London

Asking Price £ 495,000

Confidential offered for sale

Asking price includes:

Turnover circa £800,000
Pre tax profit in excess of £100,000
Strong balance sheet
High street location
Regular clientele
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 fast growing timber and builders merchants was established by the current owners in 1995. Since that time it has developed to be recognised as the leading supplier of timber, plaster board, fencing and heavy building materials in its locale, a busy area of North London.

The business turnover consistently shows annual growth in excess of 8%. Gross profits are climbing and are in excess of 28%. Pre tax profit in the current year is expected to be in excess of £100,000.

Operating from a circa one quarter of an acre yard with undercover storage for timber products and shop premises, the business enjoys a mainly cash sales trade with circa 500 regular customers. A small number of circa twenty account customers are serviced, with focus on credit control: little bad debt is experienced.

The location of the business allows it to service many small builders, landscape gardeners and consumers with all their needs throughout North London, Hertfordshire and Essex.

The wish to focus on other business activities creates a rare opportunity for a new, knowledgeable owner to take this solid business on to the next level. There are considerable opportunities for expanding the company's revenues and profits within the existing customer base as well as through marketing efforts targeting new prospects.

Customer Service

The business displays a demonstrable ‘easy to do business with’ attitude which sits at the heart of the customer engagement strategy.

Key Strengths

A large stock of in demand products is kept ensuring that all needs can be met. Combined with first class service from the friendly staff and ever competitive pricing, ensures that the business continues to grow and produce higher profits.

Growth and Expansion

Ample opportunities exist to expand the range of products and to target sales towards additional customers throughout the geographic area. Furthermore, as the business expands and more competitive purchasing can be made, even better retail prices can be charged which will drive even faster growth.
Premises

The business occupies leasehold premises of circa one quarter of an acre. The current lease expires in March 2008 and the landlord has already expressed a willingness to renew.

Passing rent is £1,100 per month. Business rates are circa £6,000 per annum.


Business Hours

Current trading hours are as follows:

Monday to Friday 7am to 4.45pm
Saturday 8am to 12 noon.
Advertising and Marketing

All new business is generated through referrals and direct ‘word of mouth’ recommendation. The business has now developed to the stage where a strategic marketing plan should be developed and executed. This can then address all media activities including the need for a website.
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 and high gross and net margins and has shown consistent strong growth since trading begun. Turnover in the current financial year is expected to be in excess of £800,000, with pre tax profit in excess of £100,000. There is a strong balance sheet.
Employees

In addition to the two owners, a driver and yardman are employed.
Support and Training

A period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.
Reason for Sale

The current owners have worked within the business since its inception twelve years ago and are looking to dispose of their interests to focus on other activities.
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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