Highly Profitable“servicemaster Fire & Flood Restoration Business 10 Exclusive Areas | | Undisclosed Manchester | | Highly Profitable“Servicemaster” Fire & Flood Restoration Business 10 Exclusive Areas Ref.GC095 Location North Wales/Manchester Asking Price O.I.R.O. £595,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 58689
ADVERT IMPRESSIONS : 15,088 TIME(S) | | | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Other | | SALE: | Agent Sale | LEASEHOLD: | £595,000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This relatively young yet dynamic Servicemaster franchise business was started by the vendor back in 2007, providing insurance driven fire and flood restoration services to residential clients, originally operating within the North Wales territory. Since then the business has grown significantly through acquisition of further territories (both virgin and established) within The North West and now boasts some 10 exclusive Servicemaster regions.
The business specialises in working on behalf of national insurance companies, loss adjusters and brokers in supplying a comprehensive disaster restoration service to residential customers(and to a lesser extent commercial) due to fire, water or smoke damage. It has a comprehensive range of services it can provide including carpet/upholstery restoration, water extraction, dehumidification, odour removal, trauma/spill removal and other related services.
The company has established a formidable reputation for speed of response, presentation, quality of work , and its ability to handle a comprehensive range of residential claims. Because of this it enjoys growing levels of business and referrals. Typically it handles some 40-90 projects per month. Projects currently catered for vary from £40 up to £15,000. Approximately 70% of work comes direct from Servicemaster with the remaining 30% coming via loss adjusters and local agents.
Equipment:
The vendor has re-invested in the business on an ongoing basis to ensure continued success. The business owns a high level of equipment including circa 280 dehumidifiers and some 250 fans. It has a modern well equipped fleet of vans (5 off) as well as a pick-up. The business also carries a small stock of consumable items (circa£2,000).
All equipment if wholly owned by the business. Estimated value of theses assets is circa £300,000.
Customer Service:
There are a number of key clients that need to be managed in this business sector, the property owner, the loss adjuster and the insurance company. Negative feedback from any one of these three can have an adverse effect on the business. The carefully selected and trained team fully understand the importance of customer care and work hard at building and maintaining relationships with all parties. The net result of this strategy has been impressive and rapid growth in terms of sales and profitability, increase in territory sizes and increased demand for this company’s services from the major insurance bodies and their representatives.
Key Strengths:
• Low running costs
• Extremely profitable business model
• Ongoing Reputation-highly professional and presentable business.
• Market Presence- 70% of work via franchisor. Ongoing marketing support.
• Infrastructure (large level of good quality plant and equipment)
• Cash flow (no debt)
• Reputation and professional approach
Growth and Expansion:
The current business has enjoyed very good levels of business to date resulting in equally impressive profits being realised. There are many areas for ongoing expansion. The business is currently operating at 75% of capacity so could easily absorb further projects within its current infrastructure. It does very very little commercial work through choice. A new owner could easily expand this side of the business as the demand is there, not to mention branching out into contract cleaning as a complimentary service is so required.
The further development of relationships with loss adjusters in the areas it covers would drive volumes and profits still higher.
Key Opportunities:
This is an outstanding opportunity to build on the impressive business levels and customer base of this company, backed by a sterling reputation. With a strong demand for this business’s services, combined with a capacity to increase the range of services still further, a new owner contributing fresh ideas and enthusiasm could certainly take this business forward.
Employees:
The vendor runs the business on a day to day basis. He is supported by a full time secretary and also has s full time Operations Manager. In addition to this the business employs 5 full time restoration technicians/ operatives.
The business also has a pool of casual labour it can call upon as and when required.
Advertising and Marketing:
The majority of the advertising and marketing is carried out centrally by the franchisor.
Premises:
The business operates from leasehold premises on a well known industrial estate in North Wales. The lease is for 3 years. Current rent is circa £100/week. The unit is circa 1500 square feet and used for equipment storage. There is also a small office area and kitchen. There is plenty of parking and the site is very secure, with gated access, alarm and CCTV.
Business Hours:
The business operates a 24 hour call out service such is the nature of its service offering.
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 has enjoyed very impressive performance to date and the vendor has re-invested in the business and put all the foundations in place in terms of equipment, reputation and territories for future success. This is reflected in the historical performance of the company and its current figures.
Sales for last financial year circa £1.5 Million per annum
Gross Profits for last financial year circa £1.14 Million per annum
Operating Profits for last financial year circa £958,000 per annum
This is an asset and goodwill sale.
Reason for Sale:
The vendor is planning his exit strategy
Support and Training:
This will be exemplary. The buyer will get the full and ongoing support of the franchisor, which will include an initial two-week training course plus a seamless and professional handover from the director for a period to be agreed as part of the overall negotiations | | | | | | FOR SALE | | | | | REFERENCE: | GC095 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
