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BUSINESS REFERENCE : EB026 / RightBiz AGRICULTURAL MACHINERY MANUFACTURE & DISTRIBUTION | | | | | | Agricultural Machinery Manufacture & Distribution Confidentially offered for sale Ref No:EB026 Location : Relocatable Asking Price: £649,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Machinery | | SALE: | Agent Sale | LEASEHOLD: | £649000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
We are pleased to offer this successful and industry leading business, founded in 1994 by the Vendor and has grown since to become a significant enterprise manufacturing an internationally renowned and highly regarded range of agricultural machinery. By adopting a commitment to an evolutionary development and enhancement policy, this company has established itself as the foremost manufacturer and distributor of a highly in demand product range that is second to none, the versatility and the manufacturing quality of which surpasses all competition.
Such is the company’s prominence and excellent reputation in this specialist manufacturing niche market, that in order to observe the vendor’s wish for the business to be offered for sale with the utmost confidentially, we are unable to specifically identify the Trademarked name or nature of the machinery produced. However, more specific information will be released to suitable parties, upon the signing of our standard non-disclosure agreement.
The business offers a range of approximately seven core products covering every level of affordability; high premium and economy appropriate to their end use and market, many with uniquely designed features and it is this business’s ability to operate in such detailed ways in both large and small volumes that creates a clear difference between this business and competitors meeting the customer’s needs for cost, productivity, delivery and quality.
The business has significantly invested in technology, implemented to maintain the careful balance between cost and quality, providing exceptional value for money and combining ease of delivery to the customer with maintained manufactured integrity. Additionally, the business has the technical and manufacturing capacity to increase production to meet the exceptional growth potential this product range offers.
With the benefit of comprehensive manufacturing facilities, the highest quality through key business areas has been maintained and conforms to British Standards where appropriate and to stringent strength and test standards. The business has also maintained significant control over costs in a demanding market. The ability of this business to grow and sustain its profitability is due entirely to the quality of its product
The business has a well developed network of established and appointed distributors affording the company a footprint of operations covering most parts of England, Wales & Scotland. In addition to the initial sale of the machinery, the company enjoys a healthy residual income from the sale of user replaceable maintenance items and various peripheral supplies.
Equipment:
Included as part of the sale is all necessary plant and machinery required in the manufacturing process as well as the highly valuable design registration and Trademark rights to the entire product range. Additionally, stocks of product ready for immediate distribution and stocks of component parts will be offered as part of the sale and will be subject to separate valuation and negotiation.
Customer Service:
One of the major features in the company’s growth and success, apart from the quality of the product, is the importance of good customer relationships which has enabled it to maintain a first class service and establish itself as the UK’s leading brand.
Key Strengths:
This is a recession proof business with ample growth opportunity. The business is well established, with a strong, large and growing customer base managed by a comprehensive and sophisticated blend of management expertise and technology.
Growth and Expansion:
With the industry in general showing strong growth potential, satisfying the ongoing demand for competitive, high quality solutions with a rapid turnaround provides an excellent opportunity for this business and those with vision and customer focus. Business operations are not at maximum capacity and there remains considerable scope for an increase in production, turnover and profit simply by gearing operations in line with current market demand.
The business is perfectly poised for expansion of its distribution network into Europe. Additionally, as the entire product range can be supplied in component part form, a massive opportunity exists for the appointment of a USA based assembly operation, thus creating the perfect launch pad for an “assembled in the USA” marketing drive into this enormous and relatively untapped market. The same is true of Australia and New Zealand and almost every other country with a strong agricultural heritage.
The company’s product range whilst described herein as an agricultural based product has in fact strong demand within numerous other commercial sectors, which provides the company with the opportunity to export on a truly global basis.
Advertising and Marketing:
The business has formed a stable marketing base with its network of distributors which offers a vast opportunity for expansion. The business undertakes minimal advertising and generates most new business from trade awareness and the finest form of marketing, word of mouth recommendation.
The Vendors acknowledge that a more pro-active approach to marketing would substantially increase the turnover of the company in the UK alone.
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 borrowings, low overheads, positive cash flow, enjoys a strong order book, good gross profit, no bad debt and has shown consistent growth and resilience over 13 years trading.
Sales revenue is circa £700,000 per annum with a gross profit of circa £265,000. Following the successful relocation of the manufacturing facility, the current level of sales revenue indicates an anticipated ongoing realistic net profit of circa £200,000 per annum. The Vendor additionally highlights that with a commitment to the opportunities illustrated, the business could dramatically increase its revenues and margins accordingly.
Reason for Sale:
The Vendor started this company from scratch, and it now celebrates an established and loyal customer base, with tremendous opportunities for substantial further expansion. He now considers that the time is right for a purchaser to bring this business up to its next operating level.
Support and Training:
Support and training will be provided for a period of time to be specified at the time of sale and thereafter the Vendor may be prepared, if required, to offer an ongoing consultancy service. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | EB026 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
