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Broker Of Engineering Oil Gas Equipment And Generators For Sale

Scotland & Dubai, United Kingdom
Asking Price:
£4,500,000
Turnover:
£4,990,000
Net Profit:
Available on request

Broker of Engineering, Oil and Gas Equipment and Generators

This highly successful business was established some 30 years ago and specialises in the purchase (direct from manufacturers) and resale of largescale used/secondary power supplies and associated heavy construction plant. Typical products this business supplies includes large scale industrial:

Generators
Transformers
Engines
Chillers
Compressors
Storage Containers
Pumps
Distribution Panels and Switchgear
The business is rather unique in that it holds preferred buyer status with many of the largest power generator manufacturing companies in the world. This enables the company to have “first refusal” when such units are available for resale throughout the world, as well as access to the full range of spares and ancillary items from each manufacturer. These agreements, with instantly recognisable global companies, are highly prized and enables the business to operate successfully on a worldwide basis, such is the demand for the manufacturers’ ranges of equipment. .

The company has a healthy stock of in-demand stock and spares that are stored at its fully secured site in Scotland as well as overseas.

The business has established an excellent reputation for providing high quality wellmaintained products and unrivalled after-sales service, providing one of the most extensive repairs and spare-parts back-up services in the industry. Through this continued commitment to client care and the business’s reputation for integrity, it has built a sterling reputation based on trust and quality of supply.

The business offers a hire facility as well as sale and this is an area ripe for future expansion, particularly in regard to transformers as this is a relatively new offering for the business and showing good growth at present.

The business employs expertly trained staff.

Its UK premises are freehold and fit for purpose, fully secured with full concrete/tarmac yard and full container loading facility.

The business has established itself at the forefront of the industry with its continued commitment to quality and an excellent reputation for getting the job done and managing delivery/installation projects successfully. It has excellent credibility which gives it unique buying power which in turn generates impressive profitability.

Customer Service:
Only deals with reputable manufacturing companies
Business provides comprehensive spare-parts and service/repair backup on equipment
Wide range of products available
Friendly and efficient staff
Excellent lines of communication with clients
The equipment is the best available and offers excellent value for money
Key Strengths:
Preferred buyer agreements (with first refusal status) for sourcing heavy plant from worldwide market leading manufacturing companies
Few competitors can match the standard of equipment and rates
No other suppliers have the same range of spares
High profit margins
Preferred supplier to existing/historical clients for ongoing spares/repairs requirements
Full turnkey delivery service
Items are promptly supplied and delivered, providing a distinct competitive advantage
Supplies in demand and unique plant requirements
Key Opportunities:
Excellent opportunity to expand operation as demand is huge and the need for
power is growing on a global basis.

Opportunity to expand advertising and increase new sale capabilities through further
sales and marketing activity.

New generations of plant constantly being developed to improve efficiency that
ensures constant renewals and replacement of equipment . This is also driven by

legislation and directives on a local and global scale.

The business has achieved impressive results to date with limited resource. Further
investment in staff will open new markets, improve account penetration and lead to

increased sales fuelling already lucrative profit margins.

Financial Information:
The business is being offered for sale on an ongoing concern basis. All financial discussions will take place directly between the vendor and any interested party under the auspices of Turner Butler.

Sales for last financial year circa £4.9 Million p.a.
Gross Profits circa £1.44m p.a.
EBITDA circa £1.2m.
Stock circa £4-5 Million
Ideal freehold site circa £600,000

The business is in a very healthy state and has many opportunities at its disposal.

Property information

Property:

Freehold

Premises Details:

The business operates from modern freehold premises based in Scotland as well as leasehold offices in Dubai. Freehold site in Scotland is circa £600,000 and included within the sales price. The site is fully secure, fenced and concreted/tarmaced. Site has offices, workshop, racked out spares/parts centre and equipment storage buildings. It has the necessary plant and equipment to facilitate container loading.

Business Operation

Competition / Market:

The business has a basic yet informative website which showcases current stock lists and services. There is excellent scope to utilise this further and undertake more assertive marketing methods in the form of Search Engine Optimisation (SEO), national/international press and exhibitions as well as expanding the sales force.

The business has a large historical client base and supplied product throughout the world. It has enjoyed impressive amounts of repeat /ongoing and referral business from customers which bears testimony to its excellent reputation.

Reasons for selling:

Planning exit strategy to enjoy retirement.

Employees:
06
Years established:
30

Other Information

Support & training:

The owner is happy to assist with the hand over and the training so as to ensure the continuity of this successful business. As already mentioned the vendor is happy to remain in the business for up to 2 years post sale should a new owner so require, subject to negotiation.

Contact Information

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  1. What will happen?

    We will pass a copy of your enquiry information, along with the name of the business you enquired on to finance specialists Rangewell. They will contact you in due course about financing your business purchase.

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