A business predominantly supplying niche floor treatments is exclusively being marketed for sale. Located in Essex, it is one of the largest suppliers in the UK and a dominant player in the South and South East.
Its clients include prestigious hotels and spas, swimming pools and leisure centres, high end apartment complexes and tiling and stone companies that install in the same locations. Rather than through advertising, new clients are typically generated by referral.
The company’s revenue is typically well spread between clients, with the top 5 clients accounting for around 30% of revenues in any one year. The highest revenue client in a particular year will be related to a specific large project and thus will change by year, while there remains an underlying recurring maintenance revenue that is well spread. The business has a trading history of well over 10 years with many of its largest clients.
The business has a level of 2nd tier management but the managing director position would need to be replaced.
The business is strongly cash generative and forecast to deliver an adjusted EBITDA of c £230k on revenues of £900k, slightly ahead of the prior year performance. The guide price for 100% shares of the Company is £750k, on a debt free, cash free basis, with an anticipated net asset value of c £125K.
The vendor is flexible over handover arrangements.
This acquisition opportunity will suit a trade buyer in a complementary business, looking to add a niche service and / or blue chip client base. The business will also suit an individual buyer or small group looking for a stand-alone business with a robust business model and stable performance.
