Somerset Mortgage Broker For Sale

Business description

This company was established in 2001 and since inception it has become one of the
leading Mortgage and Insurance brokerages in the South West, catering for a large and
diverse database of customers located in Somerset, Devon and Dorset. Eighty five per cent of its revenue comes from the sale of mortgage and life assurance products with a further fifteen percent being generated by investment advice.

In spite of recent trading conditions the company has continued to perform well, generating an annual fee income of circa £750,000 with the associated profits being in the region of £200,000 and with Directors salaries in excess of £130,000.

The growth of the business has been based on regular client contact with the majority of customers receiving a bi-annual visit. This policy has resulted in excellent long term relationships, that in turn have generated excellent levels of referrals that result in an average of over twenty new clients every month. The directors consider that there is no other major competitor in the region.

It is noteworthy that of the three existing director's one may be willing to remain with the business.

Equipment:

The company uses Sage Accounts and Payroll to control its administration. It is currently creating a computerised client database and this process will be completed by December 2009.

Key Strengths:

Retention of one of the existing directors
Well established with an excellent reputation.
Large and diverse database
Strong levels of referral
Qualified staff
Sound balance sheet

Key Opportunities:

Development of an IFA revenue stream
Fee based advice for investors
Development of the high net worth client bank

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.

The business generates a total fee income of circa £740,000 with the operating profits being in the region of £200,000, with Directors salaries in excess of £130,000.

Property information

Property:

Leasehold

Lease terms:

Three years of a five year lease remain at an annual cost of £12,000. The lease is renewable.

Location:

The business occupies town centre premises located in a secondary retail area. The offices are on two floors and cover approximately sixteen hundred square feet. Three years of a five year lease remain at an annual cost of £12,000. The lease is renewable.

Other information

Competition / Market:

The company has a web site, with the remaining business coming by way of referral.

Support & training:

It is likely that one of the directors would be happy to remain with the business, making the purchase a seamless procedure. The existing director will be willing to remain associated with the company on a consultancy basis for an agreed period of time.

Reasons for selling:

The founding director has decided to take early retirement and pursue an interest in agriculture.