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Highly Automated Direct Mail Business Achieving Ebitda For Sale

UK
Asking Price:
£395,000
Turnover:
£500K - £1M
Net Profit:
£100K - £250K

The Exit Co are delighted to announce and bring to market the sale of one of the UK's Leading (SME) Direct Mail Consultancy Businesses For Sale.

Our Client negotiates total outsource contracts to print and send appeal letters to prospective donors at their home address for 8 different charity direct mail fundraising campaigns.

The Model is to focus on charities that are involved with animal welfare, military veterans support, Cancer research and care, children in poverty overseas.


Key Unique Selling Points:

• The business has an almost total automated workflow that requires little if any intervention

• All Key Clients are held on Long Terms contracts

• Largest Private UK held list of charities data in terms of data capture


Direct mail is an eminently scalable form of direct marketing. It requires more or less the same staff time to prepare a mailing of 100,000 as one of 10,000. The only difference is availability of cashflow to fund the period between paying for the post (which is on very limited credit - we pay on 7 days by Direct Debit) and receiving the money. Our client's plan is based on a steady monthly increase of mailings to prospective donors in a direct ratio with the increasing number of actual donors from previous campaigns. Obviously, new donors recruited in the immediately past months campaign, when added to the list, allows a proportionate increase in the following months mailings to prospective donors.

Property Information

Property:

Leasehold

Lease Terms:

Annual Renewable yearly license

Premises Details:

Our Client occupies a premises in a country location which is held on annual license. This annual rental also includes, Heat, Electric, Water and Broadband

Business Operation

Expansion Potential:

Expansion is most definitely and option for any future acquirer of this business and largely is associated with cashflow

Competition / Market:

10 years ago there were many charity direct mail companies who held short term contracts with clients and outsourced printing and mailing to suppliers. These have all fallen by the wayside, largely due to aggressive action by HMRC over VAT, excess internal cost, increasing postal costs (both reducing available margin) and GDPR which greatly restricted available mailing lists.


Today there are the only 2 other significant direct mail consultancies
However they have no in-depth knowledge of how to make charity direct mail work. In this transition period there is a great opportunity for a nimble, knowledge-based consultancy to occupy this space

Other Information

Support & training:

Our Clients are seeking to find Ventures new, they are however more than happy to provide a full 12-month handover. With a further period of 24-months support consultancy available by negotiation

Financing available:

The Exit Co is always happy to assist any prospective purchasers with commercial finance subject as always to status

Related Documents:
Home based:
This business can be run from home.
Relocatable:
This business can be relocated.