Electrical Wholesalers Business For Sale

Business description

Turner Butler are delighted to be appointed as sole selling agents for this exciting business opportunity.

This family owned, managed and run business was established in 1987, and has fully utilized the generic 40+ years experience of its Principal since then.

The company has seen and lost several competitors in its 20+ years of activity, but its large and ever growing customer base have come to rely on the solidity of this company’s physical presence always having been there. The dynamism and passion for this business has been passed down to a second generation, who are actively involved in the daily operations of the business.

The company supply electrical parts, supplies and components to the trade over a wide geographical area and, although its owners would agree that proactive marketing has not been part of their business model, it has not prevented them developing a very healthy and stable fiscal performance over the years, even in the face of the currently trying economic times.

Although the two Directors now wish to move towards retirement, their son, who has grown up with the business, has developed great knowledge and experience from his parents and is willing, if required, to maintain his key position role under a new owner. Even the Principal is prepared to consider a much reduced capacity period of retention, which may well be attractive to a new owner in providing a seamless transition between ownerships.

This opportunity will appeal to both the private and commercial sectors. The private sector will recognize the turn key readiness of this opportunity with its steady profitability and good return on investment ratio. The commercial sector may easily see a geographical benefit to their perhaps larger organization trading in a same or similar sector, along with the attendant benefits of amortization of overheads, producing even stronger profitability along with the bolt on benefit of instant extra turnover.

Equipment:

The company owns and maintains an inventory of machinery, equipment, fixtures and fittings etc. This, along with stock will form part of the Net Asset Value of the company, which is supplemental to the asking price, but is expected to be included in a successful sales package.

Customer Service:

Customer service, reliability, knowledge and firm links with the local community have always been one of the very foundation blocks of this business, which has made its presence a welcome addition to the commercial fabric of the major Town in which it is located.
Key Opportunities:

The key opportunity here is surely for a new owner to develop a marketing strategy to reach out further in to the geographical area and build further on the regular and steady financial performance existent.

We are informed by the Owners that there is clear possibility to build a Mezzanine floor in to their premises, which would gain valuable extra space for the development of more product lines etc.

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Property information

Property:

Leasehold

Lease terms:

Annual rent is coming in at circa £15,000, with rates coming in at circa £5,800 per annum. The lease agreement held expires approximately at Easter 2011.

Location:

The company’s modern warehouse premises, which are connected to all main utilities, are located close to the centre of this bustling county Town. The premises comprise the Warehouse facility along with a Trade Counter and are approximately 4,800 square feet in size.

Annual rent is coming in at circa £15,000, with rates coming in at circa £5,800 per annum. The lease agreement held expires approximately at Easter 2011.

Other information

Competition / Market:

The absence of much activity here will indicate one thing clearly to the potential purchaser. If the company can perform at this level without any tangible marketing, just what can it produce with a correctly adjusted programme, which may include the development of an Internet “Shop”.

Support & training:

Full support and any necessary training will be provided during handover as part of a successful sale package.

Reasons for selling:

This is a genuine retirement sale.

Trading hours:

Monday – Friday: 8.00am – 5.00pm
Saturday: 9.00am – 11.00am