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BUSINESS REFERENCE : CC061 / RightBiz PRODUCTION AND MARKETING OF DVD BASED INTERACTIVE TRAINING TO THE PHARMACEUTICALS AND MICROELECTRONICS INDUSTRIES | | | | | | Production and Marketing of DVD based interactive training to the pharmaceuticals and microelectronics industries Confidentially offered for sale Ref. no: CC061 Location: UK Asking price: £350,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Pharmacies | | SALE: | Agent Sale | LEASEHOLD: | £350000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established in 1989, this business produces and markets multi media training programs for quality driven industries and specialist technological markets including the pharmaceuticals, biotechnology and micro-electronics industries.
Essentially a mail order company selling through the Internet and a handful of longstanding re-sellers this business is regarded as the worldwide multi media training authority on a wide range of subjects including cGMP and GMP, GXP, Contamination Control, Cleanrooms, Laboratories, Quality Auditing and Quality Systems, Personnel and Training.
With a clear understanding of its markets and customers, this business is able to identify market needs and produce material to suit. This business works with some of the leading authorities in their specialist fields to generate content and such is its enviable reputation, filming is undertaken on-site at operational plants at the invitation of its customers. Working to the highest production standards possible using its own video cameras including Sony Betacam Canon and Sony DV digital image acquisition this business works to broadcast standard video, Video Disc on CD-ROM and DVD formats. Recent projects include a full 12 module series on Quality & GMP Auditing, a Master Class in Risk Management in Pharmaceutical Manufacturing as well as a series of Masterclasses in Laboratory Practices and Procedures, which is currently in production.
Operating from very well suited leasehold premises, from which all orders from all over the world are fulfilled, this business has full in-house editing and duplication facilities, working to a ‘just in time’ system, manufacturing the end product only to customer demand. All video tape CD-ROM and DVD duplication is undertaken in-house complete with packaging and printing – with customer orders fulfilled within forty eight hours of receipt of cash.
What really intensifies the demand for this business’s product however is its proprietary question and answer software. Included in each title produced, this knowledge appraisal programme tests the viewer’s understanding of content and its application.
Having been in operation for almost twenty years, this business has a significant extensive back catalogue which now extends to over sixty titles – all programmes are available in DVD CD-ROM and video formats with the capability for content to be networked and/or streamed on the Internet. The Back Catalogue could be made available in addition to the Asking Price - either as an outright sale or alternatively via some form of licensing arrangement.
This is a truly international company. Not only does this business have a strong presence in countries throughout the world – with 50% of sales generated in the US via a sister distribution company – its Supervising Consultants and Technical Advisor panel draws on personnel from the some of the leading international Corporations and academic institutions. With revenue for the financial year ending March 2008 of approximately £240,000 generating a pre-tax net operating profit of approximately £70,000, this represents a significant opportunity for any educational or training company looking to establish themselves in this market or alternatively a company already operating in this sector looking to extend their customer base and product range.
Key strengths:
This business operates in a very niche market with very little direct competition. A global operator, not only in terms of its customer base – the material generated by this business is used by virtually every company, whatever their size in virtually every country in the world, this business works with some of the leading authorities in its areas of speciality. Its excellent relationships with leading manufacturers facilitates the production of innovative and performance enhancing training materials ensuring consistent performance improvement in companies that rely on this for their future profits.
With excellent relationships with its customers, through regular contact and by active participation with professional bodies and associations, this business has unparalleled access to facilities for filming but more importantly ensures it clearly understands industry needs, develops material accordingly and has strong certainty in the financial viability of all product prior to launch.
This business adopts a very high quality approach to its production process, ensuring all messages are instantly understood. Content is always 100% accurate, and subject to validation by peer review. All programmes include its proprietary knowledge appraisal programme to assess the effectiveness of the delegate’s understanding of their training program.
Having been established for nearly twenty years, this business has an extensive back catalogue of valid programmes which now extends to over 60 titles which are conservatively valued at a replacement cost of between £2,500 and £10,000 per running minute. All programes are available in DVD, CD- ROM and video formats and can be networked and/or streamed on the Internet.
Key opportunities:
There is an outstanding opportunity to build on the existing products, services and customer base of this company. With a strong demand for its training programmes, combined with a capacity to increase turnover, a new owner contributing fresh ideas, motivation, enthusiasm and investment will have every advantage of building on an excellent platform.
The Owner believes there is the possibility to increase this business five or even ten fold, particularly with much more aggressive marketing in the US. Growth is available in several different directions. There is a backlog of treatments still to be produced within the existing subject areas plus the possibility of producing foreign language versions of existing programmes. There is also the possibility of leveraging the excellent reputation this business has within the marketplace to move into adjacent market sectors – laboratories, food production etc. This business has also identified Risk Assessment as another area for expansion. There is also scope to adopt alternative delivery channels – adding Internet streaming of content via this business’s website, for example.
Marketing and advertising:
With such an excellent worldwide reputation and extensive Client list, this business already enjoys high levels of awareness amongst its target audience, built through constant appearances at Conferences, seminars etc.
Essentially a Mail Order/Internet based operation, this business has a very effective, well designed, informative and easy to navigate e-commerce site that performs very well in all of the major search engines for all appropriate search topics. Additional sales are achieved via a very strong network of Agents, particularly in relation to the US market.
Throughout its many years of operation, this business has built up an excellent customer database – currently approximately 44,000 contacts gathered by very effective trade mailing cards driving traffic to this business’s website.
Employees:
The Owner is responsible for the day-to-day running of the business and in particular script writing, editing and directing supported by a software specialist creating software and methods for animation and interactivity. There is another cameraman who also undertakes video editing. A Partner is responsible for quality control of new products and the development of training packs. The business also employs part-time staff responsible for order fulfilment.
The business outsources to a wide range of technical advisors and consultants for initial developments and treatments for new products.
Premises:
The business is located on a small business park, operating from very well suited premises – a modern two storey suite of approximately 1200 square feet. The Ground Floor houses the editing suite, duplication, stores, shipping with the First Floor given over to administration, software development, DVD and CD-ROM manufacture and printing.
Rent is £15,000 per annum with Rates £4,682 per annum. The premises are leasehold with 5 years remaining on the lease.
Financial information:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Revenue for the financial year ending March 2008 was approximately £240,000, generating a pre-tax net operating profit of approximately £70,000.
A major asset of the business is the ‘back catalogue’ of approximately 60 titles, conservatively estimated to be worth £850,000 and available in addition to the Asking Price for the business – either as an outright purchase or alternatively secured on a licensing agreement.
The Asking Price of £350,000 is for the sale of the shares in the business.
Reason for sale:
This is a genuine retirement sale. The present MD is well past retiring age and is conscious that he has not fired on all cylinders over the past few years and recognizes that he has almost certainly contained the company's growth.
Support and training:
Full training, handover and familiarisation will be provided to ensure a smooth transfer of the business to new Owners | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CC061 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
