Mobile phones and accessories provider working predominantly with O2 and as an appointed Vodafone partner
Ref.AD015
Location Middlesex
Asking Price £ 225,000
Confidentially offered for sale
Next Step,
please view Terms & Conditions and submit Confidentiality Form/NDA online
Asking price includes:
Turnover for the financial year ending March 2008 of approximately £286,000 Gross margins of approximately 50% Profits available to the owners of the business in excess of £90,000
Seventeen years of successful operation Strong, loyal B2B and personal use customer base Strong reputation for professionalism and Client service Leased retail outlet in prime location plus short term rented admin base Healthy, positive cash flow Strong growth potential Training and handover Goodwill Stock
Business profile:
Established in 1991 by the current Owners, this business was quite possibly one of the earliest entrants into the mobile phone and accessories market. Since then this business has established an excellent reputation as a highly knowledgeable, experienced and truly independent provider of mobile telecommunications. Aiming to reduce Client’s costs and improve the efficiency of their communications, this business is a provider for both business and personal use, with the largest proportion of turnover arising through the ‘B2B’ sector, with Clients ranging from some quite large limited companies through to smaller partnerships and sole traders. Operating both from a retail location and a small administrative office nearby, the company has a strong local base of customers within the South West London and Middlesex areas, although it also has a number of larger accounts scattered across the whole of the UK – arising from the heavy investment the business made in advertising its products and services when initially setting up. Many of these accounts this business has continued to service throughout its many years of operation.
Working predominantly with O2 and as an appointed Vodafone Partner, two of the biggest network providers in the UK, this company prides itself on delivering a very high level of customer service, far higher than is normally available from the network providers themselves. It is a complete one stop solution offering expert advice, personal levels of customer care and ongoing support services. Fiercely independent, the business consistently provides free and impartial advice and assistance ensuring the right plan, the right device and the right network to meet its customers’ requirements, whether it’s a contract, pay as you go, upgrade or repair. It is in relation to its Corporate customers however, where this added value Account Management role pays real dividends. Regardless of the size of the business and whether a Client is interested in convergence or just the best current solution to match their budget, this business takes away from its Clients the day-to-day hassle of managing a number of mobile phones, promptly providing replacement handsets, dealing with network issues, arranging for car kit installations etc. As a result this business can boast a very high level of customer satisfaction, a very loyal Client base and as a result a high proportion of repeat revenues. This is a very well established business with excellent levels of predictable income from existing relationships. With turnover of approximately £286,000 generating gross margins of 50% and profits available to the owners of the business in excess of £90,000 this represents an excellent acquisition opportunity for an existing operator within mobile telecoms to increase their penetration of this sector or for a new entrant to acquire an excellent foothold with a solid customer base of business and personal usage customers. This business may be particularly attractive to an organization or individual currently involved in IT sales with an appropriate technical background to take full advantage of the cross-sell opportunities available from merging the two organizations.
Key strengths:
In operation since 1991 the business is very well established and as the only mobile phone retailer with a physical presence within the town it which it operates, benefits from high levels of awareness both in the local marketplace and further afield. It has a loyal Client base particularly amongst its corporate customers – many of which it has been servicing from Day One of the operation. As an independent with the ability to connect to any network as appropriate this business also benefits from being an appointed Vodafone partner and enjoys significant on-going revenues from Vodafone and O2. The business has an excellent reputation for honesty, reliability and integrity but above all professionalism and high levels of customer service – far exceeding the performance levels normally associated with other operators in this sector.
Key opportunities:
There is a tremendous opportunity to build on the existing base of this business. With a strong demand for the services offered, there is the capacity for a new owner contributing fresh ideas and outside influence to increase turnover and profitability and to build on an excellent base. An excellent income is available to any new Owner continuing to service the existing customer base by maintaining the high levels of customer satisfaction achieved in the past. There is further scope available however by leveraging the excellent reputation this business has built up amongst Corporates to increase its presence within this sector and amongst SME’s in particular – a market that is relatively largely unaware of the significant business benefits available from utilizing the applications that are currently available to the mobile telecoms user and from the increasing divergence of fixed and mobile telecommunications and data.
Location and premises:
This business operates from both a High Street retail outlet and a nearby administrative base. Prominently situated in a prime position in this busy Middlesex town, alongside the stores of some of the biggest retailers on the High Street, the retail outlet is approximately 1,000 square feet including an office to the rear of the premises. Leased until March 2009, but with the ability to renew, if required, the rent is £17,500 per annum to include a three bedroom, two storey flat with separate access, above, which is currently let on a short term basis and generates rent of £650 per month. Rates are £6,000 per annum. Modern and well furbished, the retail outlet is open between 9.00 am and 4.30 pm, Monday to Friday only. The administrative base, nearby, is secured on a short term rental basis, with just one month’s notice required and is used primarily to service B2B customers. Approximately 800 square feet, the office accommodates two work stations and is situated on a small trading estate with ample car parking. Rent is £730 per month with Rates of £2,009 per annum. The two locations are linked via ADSL enabling one stock and sales system linked into Sage to be maintained for the whole business, enabling commissions to be tracked.
Marketing and advertising:
Throughout its many years of operation this business has tested and assessed all possible marketing and advertising – with many of its current customers arising from its heavy investment in advertising when it first opened. Having been established for many years and benefiting from high levels of awareness within its immediate area of operation the business has invested little in marketing and advertising recently, limiting its activities to partner based and co-branded campaigns run by its two main network operators. Although it has a domain name, the business does not have any form of web presence whatsoever. There can be no doubt that investment in this area could have a significant impact on turnover and profitability.
Financial profile:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. Turnover for the financial year ending March 2008 was approximately £286,500 generating gross margins slightly in excess of 50% and profits available to the Owners of the business – a combination of salary and pre-tax net operating profits in excess of £90,000. The Asking price of £225,000 is for a sale of the shares in the business based on a zero Balance Sheet.
Staff:
The two founders and Owners are responsible for the day-today operation of the business.
Training and handover:
The current Owners will provide full training and handover to ensure a smooth transfer of the business to new Owners.
Reason for sale:
This is a genuine retirement sale.
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