Available: An established company, posting steady growth in revenue, with EBITDA of £440K in 2019 and over £500K in 2020 (estimated £600K in 2021).
Over 50% of the revenue is recurring and it is growing Y-o-Y.
What does the company do? It's a market leader in its sector and well known enough that any disclosure of what it does would allow immediate identification of the company.
However, I am authorised to disclose this: it operates in the broad area of vehicle security and has extensive intellectual property developed in-house. It sells specialist hardware software products to which the company owns the IP. Customers are both business and domestic.
Reason for sale: Retirement
Some key points:
• Largely employee run, not reliant on owners;
• Motivated workforce;
• Well run & well managed;
• Good record keeping, clean accounts;
• Excellent & valuable industry relationships;
• Strong brand recognition;
• No customer concentration risks.
Why should you buy this business?
• Generating regular & significant profit;
• Strong growth trajectory;
• Over 50% of revenue is recurring revenue;
• Recession proof, highly liquid, good cash flow;
• Rare / low bad debts due to nature of business;
• No pending litigation or HMRC disputes;
• Clean ownership structure; smooth transfer guaranteed
Considerable investment has already been made in new products and 2021 is anticipated to be the best year to date.
Midlands (or thereabouts)
Expressions of interest are invited. Given the size and nature of the business it is expected that it will attract the interest of buyers who are sophisticated enough to come to their own value decision and are not reliant on being given an "asking price". However, it does need to be said that the owners of this business have reasonable price expectations. They have researched multiples that similar businesses have achieved at market (completion prices, not asking prices).
Some element of seller financing is available. However, interested parties need to be aware that any deal proposed / accepted would consist of the buyer having "skin in the game" (their OWN funds, not borrowed) equal to no less than 50% of the headline price offered. I appreciate this will not suit buyers who are looking to find a deal first and raise funds later.
Buyers who pass my initial vetting will be provided a copy of the 30 page Information Memoradum covering all the main financials and other data. The following documents are also available on further satisfaction of buyer intent:
• Full accounts for the last five years (including P&L)
• Management accounts
• Copy of the lease
• CT600s & VAT returns
• Information on customer retention and other stats
• Various other documents and data
To apply for the NDA, please fill in the form below stating your full name and the company/entity (if any) on behalf of whom you are applying. Please also copy and paste this text: "I am genuinely interested in acquiring this company and I have liquid capital"
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