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CONFIDENTIAL SALE
FOR SALE
11/04/22
293617
FOREST / Rightbiz
Our client is an installer and direct seller of orangeries and conservatories servicing clients across the UK with a particular focus on Bedfordshire, Buckinghamshire, Cheshire, Gloucestershire, Hampshire, London, Northamptonshire, Oxfordshire, Surrey and Warwickshire.
The company targets wealthy homeowners in prosperous areas, a market not renowned for a particular price sensitivity but one guided by quality and a desire to be fashionable.
Run as a family business, our client is celebrating its 10th year of consecutive trading with record sales figures.
Financial performance
The pandemic affected the business taking turnover down to £408,128 but this rebounded in the year to 31 August 2021 to £723,688, a 77% increase in revenues.
At current speed, 21/22 T/O will be £780,668, a 7% increase.
On each job, materials account for around 45% of costs while labour accounts for 22.5% of costs. The gross margin on the average installation carried out by the company is around 32.5% which gives the company superior cash generation abilities.
The new owner will benefit from an average weekly cash flow of £16,700 including VAT arriving in the company’s bank account every week in the last full FY.
Services offered
The company designs, supplies and installs bespoke hardwood and aluminium conservatories and orangeries.
The average job cost is £30,000 to £100,000.
A 25% deposit is taken at the time of sale. Clients then make between 2 and 4 timed tranche payments until the work is completed.
Over the past 10 years, the company has established close working relationships with its material suppliers and its subcontractor network. This has allowed it to keep its costs under control and retain a 43-48% gross profit margin.
Sales and marketing
The company’s website currently receives around 300 visitors a month and it is responsible for the generation of the majority of leads.
Our client is one of a handful of their supplier’s customers who benefit from a co-advertising scheme. Our client makes a minimal monthly contribution which is greatly topped up by their supplier and they receive leads exclusively in their designated area. Ads appear in Homes & Gardens.
The company benefits from direct referrals by customers who are delighted with the quality provided. Orders are received from existing customers who have moved property.
Without any formal sales training, the managing director of the company closes 25% of the enquiries received by the company.
Advancing your enquiry
We expect interest in this company to be high because of its target market, the quality of its service, and its level of profitability. We therefore invite all interested parties to contact us for further information.
Do not pay any deposit to private sellers upfront. If you are looking to purchase a business, we advise that any deposits or transactions made are through a solicitor to prevent fraudulent activities from occuring.
Do not share confidential information with any private sellers, including your home address, account passwords, bank accounts and credit card information.
The vast majority of these scams involve the transfer of substantial sums of money. We advise all transactions made are through a solicitor to prevent fraudulent activities from occuring.
Send a test amount before you consider handing over a large amount of funds. Maybe even try transferring £1, and then speaking to your solicitor to confirm receipt.
Do not disclose proof of funds directly to the sellers. If the sellers request you to show proof of funds, we advise that it is done through a solicitor to prevent fraudulent activities from occuring.
Buying a business is not covered by consumer rights legislation. It is your responsibility to acquire a business that holds up in quality and agreement.
Fraudsters will typically use false news in an attempt to get you to act quickly. For example, 'Your account has been disabled. Reset your password now.'.
Review the performance of a business to make appropriate financial projections. Some businesses are dormant or not trading, so it is essential to check their short and long-term potential.
Legitimate emails from Rightbiz will be with the domain @rightbiz.co.uk. However, emails from [email protected], [email protected] or [email protected] are not affiliated with Rightbiz.
Be safe, use a Rightbiz Solicitor
Do not pay any deposit to private sellers upfront. If you are looking to purchase a business, we advise that any deposits or transactions made are through a solicitor to prevent fraudulent activities from occuring.
Don't share confidential information with any private sellers, including your home address, account passwords, bank accounts and credit card information.
The vast majority of these scams involve the transfer of substantial sums of money. We advise all transactions made are through a solicitor to prevent fraudulent activities from occuring.
Send a test amount before you consider handing over a large number of funds. Maybe even try transferring £1, and then speaking to your solicitor to confirm receipt.
Do not disclose proof of funds directly to the sellers. If the sellers request you to show proof of funds, we advise that it is done through a solicitor to prevent fraudulent activities from occuring.
Buying a business is not covered by consumer rights legislation. It is your responsibility to acquire a business that holds up in quality and agreement.
Fraudsters will typically use false news in an attempt to get you to act quickly. For example, 'Your account has been disabled. Reset your password now.'.
Review the performance of a business to make appropriate financial projections. Some businesses are dormant or not trading, so it is essential to check their short and long-term potential.
Legitimate emails from Rightbiz will be with the domain @rightbiz.co.uk. However, emails from [email protected], [email protected] or [email protected] are not affiliated with Rightbiz.
Be safe, use a Rightbiz Solicitor
Get Solicitor
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