This is a very well established business with an excellent reputation in the industry. The Vendors have over 20 years experience as energy brokers, and have developed a loyal, core client base, with in excess of 90% renewals, predominantly in the commercial sector.
Over a number of years, the business has developed a bespoke system, which generates auto renewal flags, which are followed with a personal call, and an updating of the system log of events on each account.
The business operates predominantly through an online price portal with all the leading UK energy suppliers, but also has valuable direct agency relations with the larger shippers – N Power, Scottish Southern, EDF, Gazprom etc. All the business systems, the database and the customer and supplier relations are to be transferred in this disposal.
In previous years the business has traded in excess of £500k per annum, with sales predominantly generated via commissions, but also with facilities management and support services such as bill validation and meter installation.
Many of the customers have remained with our Client for a considerable time and renewal rates are in excess of 90%. There is an excellent balance within the customer portfolio of 10-15 larger consumers and approximately 200 smaller customers of varying sizes.
The business currently operates from leasehold premises in the North of England. This could be continued, but it is expected that the new owners will relocate the business as this opportunity is not location critical, and the customers are nationwide.
The business is currently operated very low key, solely by the 2 Vendors.
Accounts will be made available to seriously interested parties, subject to the return of a Confidentiality Agreement.
Handover & Training
The Vendors are willing to remain for a suitable period in order that the business can be transferred to the new owners as smoothly and efficiently as possible. Comprehensive training on the in-house system will be given, and the necessary introductions to key customers will be made. Should the new owners require any post sale support, one of the Vendors is willing to remain for a period in a part-time consultancy capacity.
This opportunity has previously traded at significantly greater levels, and has huge potential for a return to considerably higher sales and profits. The Vendors originally planned to retain an element of the business, which was to be operated by management, but this strategy has not come to fruition. As such, the business is to be sold.
Since instruction, the forecast for sales and profits, for the next few years, continues to increase as high retention rates have remained, and forward, contracted, income has been secured.
We would expect the acquirer to be either
a) a new entry into the sector looking to build on a long established, secure trading position
b) a business already operating in the sector, or a parallel sector, looking for an acquisition to quickly enhance their sales and profits
The business is offered for sale, including all systems and database plus the necessary training for Offers In The Region Of £300,000
- Attractive Business
- Established Business
- Offers Invited
- Retirement Sale