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BUSINESS REFERENCE : CV023 / RightBiz SATELLITE & AERIAL INSTALLATIONS AND FRANCHISE OPERATION | | | | | | Satellite & Aerial Installations and Franchise Operation Confidentially offered for sale Ref No: CV023 Location: South UK Asking price: £5,750,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Other | | SALE: | Agent Sale | LEASEHOLD: | £5750000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This fast growing, market leading, niche business was established in 2001 and has gone from strength to strength in an amazingly short space of time, while still a long way from its peak potential. The stated aim is to be the best in this marketplace by offering a service that exceeds customer expectations at all times by providing a fast, friendly and highly effective service in all areas where they are represented. A mission they have not only achieved in a remarkably short period of time but have also exceeded beyond expectations. This has been achieved through a combination of vision, focus, hard work and effort combined with the business knowledge and acumen of the owners of this business.
The company’s core business was originally domestic satellite and digital aerial installations, but over the years it has diversified to include commercial satellite and aerial distribution systems and nationwide franchising. With strong national advertising it has gained exceptional brand recognition leading to a strong presence in the domestic and commercial marketplace. This split of sales gives resilience to cyclical economic conditions.
This business is now ideally positioned to take full advantage of the current national switchover to digital reception that commences in 2008 and concludes in 2012 with all the additional opportunities being presented along the way and ensuring none of its customers are disadvantaged as analogue TV transmitters are taken out of service. Growth will continue after the switchover period with ongoing maintenance and installation being predicted to continue in a strong growth cycle.
The company are fully accredited with the C.A.I., I.D.S.C. and R.D.I. which means all the work completed by them is to the highest and most stringent standards, indeed this is achieved not only by employing qualified engineers, but by putting them through their own rigorous and extensive four week in house training programme, culminating in a series of competency exams, before going out on customer site. This training not only includes technical training but also includes customer service and reminds them to leave the premises in a clean and tidy condition with all internal equipment checked and tuned to the new equipment, with all parts fully guaranteed. It is this care for the customer and service offered that truly sets them apart from and above, their competition.
The opportunities for this company are immense with growth in their direct business to end-users and through the franchising they have begun nationwide. Currently there are 27 sold franchise areas in successful operation with another 40 additional areas ready to be rolled out and marketed in the foreseeable future. Not only will this provide good immediate income but also provides an ongoing and highly lucrative revenue stream, meaning this business has tremendous growth still to come and is also superbly placed to take full advantage of market opportunities as they are presented.
Customer Service:
The company have achieved a superb and deserved reputation with their customers that is evidenced by the high number of word of mouth recommendations they receive, which is a testament to the high level of service provided. It also clearly demonstrates the ‘we care’ ethos that is evident throughout. All customers receive the same high level of care and attention starting with the free digital reception diagnosis, realistic price for the job, superb installation by fully qualified engineers working to the highest standards in the industry, guaranteed quality of service or money back, with the promise of arriving on time and leaving the premises clean and tidy with all equipment checked and working before departing.
Key Strengths:
Traditionally, most aerial installers are sourced through the local papers using a person who may or may not be qualified or particularly knowledgeable, a man with a van and a ladder. However with the advent of satellite and digital technology, this company is a real exception in that they have a strong offering in the fully knowledgeable and qualified staff within the company and its franchisees. They are able to offer a fair price with fast response and the ability to provide answers to the complexity of modern digital installations. This industry is at the start of its own technological evolution and this company is poised at the forefront of this industry explosion. The range of products and services has evolved to meet this specialist market place.
Growth and Expansion:
Will continue through the two distinct arms of this well-established business, on the one side is the direct business that this company offers in its own areas, with the continued increase there is in their lucrative areas, and the other is the franchise side that still has tremendous growth opportunities.
There is further opportunity of expansion into wholesale or internet sales utilising the current premises, plus additional opportunities in related fields, for example home cinema along with zoned sound systems, maintenance contracts, etc.
Key Opportunities:
This is a unique opportunity to purchase a growing business with such strong values and commitment to its mission. It is a well-structured company generating excellent profit margins with incredible growth potential. It maintains an extensive base of satisfied customers, who value the company’s products and service. Early viewing is recommended to appreciate this excellent opportunity. The current market for this business’s branded products is stable and is forecast in the near and longer term for significant growth. The business is well positioned to take maximum advantage of this growth as it occurs.
Perhaps the biggest future opportunity for this business is the Government’s planned shut down of analogue television transmissions with the move to all digital service. This starts regionally in 2008. Whilst the South East will not switch over until 2011, finishing nationally in 2012, consumer awareness is growing now and already stimulating the market. This will generate an ever growing and very high level of demand for new televisions and satellite and Freeview receivers, coupled with the need for digital aerial upgrades.
The recent launch of High Definition (HD) television is bringing the consumer the best picture and sound quality ever seen. As more and more channels move to HD, demand for HD Ready televisions, LCD or Plasma, will inevitably increase, along with the necessary upgrades to internal cabling and satellite receiving equipment.
The market for digital communal aerial systems, typically in apartment buildings, is relatively immature. The company is well placed to exploit this opportunity in the years ahead.
Whilst the company maintains a comprehensive website, no attempt has ever been made to use the site as an on-line sales medium.
Equipment:
The business maintains a range of equipment as would be expected from a business of this size and stature with a realistic value in the region of £100,000, however it is the companies Net Suite CRM system that it believes to be its most valuable asset. Not in pure monetary value but in the enhanced value to the business of this comprehensive system which is used to run and control the growth and success of this business. These are all included in the asking price of this business.
Premises:
There are two premises for this business. The first being a leased premise in West London and the second being a freehold site used as the base for local operations and as the head office for this business. The freehold site is situated in an affluent area in the South of the UK and is valued at circa £300,000. The freehold is included in the asking price of the business.
Employees:
The company employs 19 staff directly, in addition to the 4 owners of the business, all of whom work full time in various capacities. There are also currently 27 franchisees spread throughout the country.
Business Hours:
Monday to Saturday: The office operates between 8.00 am to 5.30 pm.
Financial Information:
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.
The business is financially stable with no borrowing and high gross margins and has shown consistently strong growth since trading began. The current turnover is circa £1,623,000 per annum, with gross profits circa £1,145,000, making this a highly profitable business. Also included in the asking price is the commercial freehold, with a value of circa £300,000, assets valued circa £100,000 and stock circa £25,000 with a tremendous amount of business potential and high levels of income yet to be achieved, combined with high levels of franchise fees and income on a guaranteed yearly basis.
Reason for Sale:
There are four diverse owners of this successful business who have achieved what they set to do and now wish to pursue their separate objectives and business opportunities, so are prepared to offer this tremendous opportunity to a buyer with the drive, focus and financial wherewithal in order for it to achieve its continued growth.
Support and Training:
The current owners will be happy to agree to an extended period of handover and training to ensure a smooth transition. This will also guarantee continuity of service to the customer base. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CV023 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
