Location: Somerset
Asking price: £600,000 Inc. Net Assets
TURNOVER: c£2,200,000 (2023 forecast)
GROSS PROFIT: c£350,000
EBITDA: c£208,000 Before Director’s drawings
NET ASSETS c£120,000
Key Considerations
• Highly reputable Building Services company in the South West of England
• Long term relationships with Insurance Companies & Estate Agents
• New Build, Maintenance & Remedial works
• Widely known for prompt and caring customer service
• Skilled, experienced and well-trained staff
• Quality and immediacy of communications
• High levels of customer satisfaction and loyalty
• Multiple accreditations and well equipped to meet stringent legislation
• Excellent springboard for future growth including geographic expansion
Business Profile:
The opportunity exists to acquire by way of a share purchase all of the issued capital in this property maintenance and building services company (“the Business”)
In the South West of England, the Business has become one of the most successful and respected building services companies for its customers and clients, many of which have been customers since the earliest days of trading. It operates in the commercial and industrial services sectors including Housing Associations, Insurance Companies, Estate Agencies and Construction Companies.
The Business is a trusted building services company and is considered a leader in the region. It has built its name on superior customer service, highly skilled staff, top quality project delivery, and unwavering reliability, and all with little marketing or direct sales.
The Business is well established, prudently managed and with an enviable client & customer list. It is approved member of the Federation of Master Builders, Construction line, Trustmark and CHAS. It is extremely well placed to benefit from new owners who wish to build on this credibility and expand the Business’ activities both geographically and in the scale of services.
The previous year’s performance was unfortunately damaged by a recruited senior manager with a remit to develop the growth of the business and relieve the current owner of the day to day duties but the owner was required to step back into the general management role and so the Business is now returned to trading health and financial performance is back to where it was.
It is felt that the demand for new projects is pushing the capabilities of the owner and the sale of the Business to new owners with the capacity & managerial capability to cope with the demands of growth would benefit.
All relationships have significant scope to increase works. The business has the ability to easily maintain its £2m plus turnover but with new owners it is believed that within a few years this could reach £5m with commensurate margins.
Employees:
The Business employs:
8x Full Time administrative & managerial staff “x of whom Gas Safe
25-30x trusted and reliable sub-contractors for building & project work
Premises:
The Business operates from modern offices with extensive facilities located on a circular trunk road in one of the South West of England’s busiest cities. This offers easy access to all the main motorways and roadways throughout the area.
Reason for Sale:
The current owner feels that the demand for new work placed upon the Business highlights the requirement for a new owner with the resources to take full advantage of the opportunity.
The current owner would be available in a consultative capacity post completion, if desired.
Financial Information:
In 2021 the turnover was circa £2,200,000 and the EBITDA after allowing for a replacement general manager was c£180,000, this fell in 2022 during the tenure of the employed general manager to a turnover of circa £1,200,000 and this year end for 2023 is reliably & confidently forecast to be slightly increased on the 2021 performance.
The asking price is predicated on there being no cash and no debt at completion. The NAV is expected to be zero and there will be a £ for £ adjustment to the final sale price to reflect any movement away from this figure.
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.
Asking Price:
The Vendors are seeking offers for 100% of the issued capital of the company in the region of £600,000 assuming net assets of Zero and no cash and no debt. There will be a £ for £ adjustment to the final sale price to reflect any movement away from the zero net asset position.
