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BUSINESS REFERENCE : CC060 / RightBiz CC060 -RELOCATABLE-£ 1,400,000-ONE OF THE UK’S LEADING CORPORATE TRAINING BROKERS SPECIALIZING IN MANAGEMENT TRAINING WITH AN EMPHASIS ON IT, PRINCE2 | | | | | | One of the UK’s leading Corporate Training Brokers specializing in Management Training with an emphasis on IT, Prince2 and ITIL training in particular Ref.CC060 Location Relocatable Asking Price £ 1,400,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Other | | SALE: | Agent Sale | LEASEHOLD: | £1400000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established for over Ten years and having experienced significant organic growth in the past 18 months, this business is now one of the leading corporate training brokers and Managed Training Services (MTS) provider in the UK. Offering a wide range of Management or ‘Soft Skills’ training courses, this business is perhaps best known within the IT industry where it can justify its claim to be the largest independent IT training agency in the UK. A significant part of this business’s undoubted success has been its website and in particular its state of the art search facility constantly updated with the very latest information on thousands of courses running across the UK (currently 15,000 events). This, combined with its database of hundreds of qualified, experienced trainers, enables this business to save itself valuable time in sourcing training on behalf of Clients but perhaps more importantly, money – where this business can offer up to 40% savings on competitor prices, whether the customer is a Corporate Training Department looking to improve the skill base within their organizations or an end user looking to improve their career prospects.
Amongst a full range of scheduled and On-site “Soft Skills” courses this business covers the full spectrum - Management, Personal Effectiveness, Human Resources and Sales & Business Development. And with its enviable purchasing power and excellent working relationships with course providers – this business is the largest single point of contact for Management and Soft Skills courses and trainers in the country – it is able to offer regular courses in training locations throughout the UK offering the best level of discounts available, regardless of the number of delegates or the number of courses booked.
Within the IT sector, its technical and end-user courses include all Microsoft 2000, XP, 2003 courses Cisco, Citrix, Oracle, Linux, Sun, IBM Lotus, SQL where generally courses are available at 50% less than standard prices. For on-site training within the Corporate sector, this business has access to over 480 experienced, qualified trainers at locations throughout the UK, delivering the highest quality courses in any subject anywhere in the country. Via email and Web links this business can act as an internal training contact dealing with training enquiries and bookings, curriculum guidance with guaranteed response times etc. By also looking after the administration of courses and events from start to finish, this business massively reduces the costs and time associated with training administration.
By far the greatest growth in the business has arisen throughout its unrivalled offering in relation to the Prince2, MSP, M_o_R, APM and ITIL sector, where it can offer savings of up to 40% of the Recommended Retail Price (RRP). This business has become the largest broker of APM Group accredited Prince2 training courses in the country, providing APM Group Prince2 Accredited courses through many of the UK’s leading providers at over 45 locations throughout the UK. Its ITIL offering is similarly impressive with delegates benefiting from fully accredited training at prices much lower than available from individual training companies. Such is its success in this arena, the business has recently commenced hosting Prince2 courses of its own, easily having sold out every course to date.
With such a compelling product and price offering coupled with enviable supplier relationships, this business is equally in demand from major Corporates – private and public sector as well as from end users. The introduction of its online booking facility has created a step change in its financial performance, a trend that has been heightened by the introduction of its ‘own label’ Prince2 training courses (in conjunction with an approved ATO). With turnover of £1.32m for the financial year ending July 2007, generating net operating profits for the last 12 months of nearly £230,000 and £1.5m turnover to the end of July 2008, this represents an excellent acquisition opportunity for any organization looking to establish a foothold in training brokerage or another training broker looking to strengthen its presence in the sector. Turnover and Gross profit for the first 6 months of 2008 are up by 30% on the last 6 months of 2007.
Key strengths:
The market has changed over recent years so that it is very difficult for a “new” reseller or broker to set up suitable suppliers. Suppliers are less inclined to offer preferential rates and payment terms to new start businesses. The life blood of any reseller or broker is its relationship with its suppliers. This company has always had the view that its suppliers are as or even more important than its customers. Its relationship with all its suppliers is very good. A recent issue is the amount of new suppliers courting them for business. The business is in an excellent position to take full advantage of market developments as they arise. Through the sheer volume of the business it transacts with its suppliers, this business is able to negotiate some of the very best deals available ensuring that not only does it offer fantastic value to its customers, it still retains significant margins. Whilst offering the very best value available the quality of training and customer service is never compromised. This business works only with the very best accredited suppliers and has selected experienced, professional trainers and training organizations with a background of delivering excellent quality.
This business can boast an enviable, long standing, blue chip customer base representing some of the biggest names in the pubic and private sector as well as thousands of end users – many coming to this business as a result of strong word of mouth recommendation, testimony to both the price and the quality of the training provided. It is ideally situated to assist businesses that have identified a training need to find the most cost effective way of sourcing it. With training budgets under constant pressure, this business can reduce training costs by as much as 50%.
One of the major strengths of the business is its ability to identify new training products and subject matter and to set up a brokerage facility around those products and subject matter. This it has done particularly well over the past 2 years with specific key products.
This is a very well managed easy to run business operating on very low overheads and very high margins. Through its recent web and online developments this business has identified the easiest and most cost effective way of attacking its market – a route that has not only proven to be very successful generating significant on-going growth. Easily scaleable this business offers excellent expansion opportunities, moving forward.
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 courses, 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.
It would also pay dividends for this business to get far closer to its Corporate customer base. Currently the company has only one part time sales person. Operating currently with very low overheads and limited personnel, the business would benefit from recruiting Key Account Managers, or Sales Managers to extend the current customer base and build closer relationships with its existing Client base and maximize the opportunities available.
Additional opportunities are available through the development of a far more sophisticated website with enhanced functionality – building on recent success. With a little investment it would be possible for the business to offer a ‘live’ system enabling the customer to assess true availability (bookings are currently accepted subject to availability), building in more effective search engine optimisation techniques – a service which is currently outsourced at a cost to the business etc.
Slightly outside its current scale of Operations there is also the opportunity to set up a recruitment division – matching those Corporates considering booking their staff on courses – and therefore having a skill requirement, with those that have already developed the latest skills (and would be keen to use them!) through the course they have just completed.
Premises:
This business currently operates from short tern office accommodation. Rent is £550 per month all inclusive. With no formal arrangements in place the business can be easily relocated.
Marketing and advertising:
Traditionally this business had run a successful telesales operation – primarily aimed at Corporates that had booked previously to ascertain whether they had any future requirements.
Following the development of its website, by far the biggest investment this business now makes in marketing via the web through sponsored links. The company has invested in search engine optimization techniques to maximize its presence in web listings whilst reducing its spend.
This business enjoys significant word of mouth recommendations, however, by far the most cost effective marketing activity, testimony to the quality training and excellent value for money this business offers.
Financial profile:
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.
Following the introduction of its very effective website this business has grown significantly over the past eighteen months – a trend that will continue well into the future. Turnover for the financial year ending May 2008 was £1,520,000 generating gross margins of £380,000 and pre-tax net operating profits of £220,000. Turnover and Gross profit for the first 6 calendar months of 2008 are up by 30% on the last 6 months of 2007.
Employees:
The Managing Director/Owner is responsible for the day-today operation of the business supported by Two full time and Two part time Accounts and Administrative Assistants together with One part time marketing assistance.
Support and training:
Full training, handover and familiarisation will be provided to ensure a smooth transfer of the business to new Owners.
Reason for sale:
Having built this business to its currently very substantial and successful scale, the Owner believes the time is right to pass the business on to new owners to build on the excellent foundations already laid. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CC060 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
