An e-commerce focused digital design and development agency, predominantly providing website design, development, and hosting services, with a specialization in Magento, is exclusively marketed for sale.
Revenues are derived from website design + website development (c 40%), hosting services (c 25%) and the balance marketing and other services. Increasingly, projects are multi-faceted, requiring the delivery of an integrated website and subsequent digital marketing campaign. The agency has 45+ clients onboard from a diverse range of industries (protecting itself from any downturn in a particular sector) and with different types of organisations from both the private and public sector. There is an overall strategy to focus on larger clients with higher monthly budgets and this will increase recurring revenue to c 60% of total revenues by the end of the current year.
The business operates remotely near Edinburgh, with the vast majority of clients Scotland based, but they are typically managed via video calls etc and the business is therefore relocatable. The company is managed by the 2 directors (1 full-time, 1 part-time), then preferring to utilise strong relationships with skilled resource on a subcontract basis as and when required, in addition to local strategic partner agencies.
Internal marketing activities are extremely limited, with strong SEO positioning allowing the business to typically generate new clients organically or through recommendation. Combined with a remote-working business model, this results in a low overall cost base for PGL, allowing it to generate healthy profits, that continue to grow year over year, while remaining competitive in the market-place. The current year forecast is sales of £330k delivering an adjusted EBITDA (having accounted for replacement management costs) of c £150k.
Having run the business for a number of years, the vendor is now seeking to pursue different interests, therefore concluding it is the right time to relinquish control and allow new owners to take it through its next phase of development. The vendor will provide an appropriate level of handover.
The Guide Price sought by the vendor for 100% of the shares of the Company is £395k and will be sold with a debt free, cash free Balance Sheet. A minority element of vendor financing will be considered.
The business is an attractive acquisition for trade buyers looking for a new regional presence, or to add an e-commerce specialism, while inheriting robust recurring revenue streams. Alternatively the business is of a size that would suit a private individual or team wanting to enter the web design and digital marketing sector.
