Businesses for Sale

Sale Memorandum

Domestic Household Appliance Retailer – White Goods and Electrical Merchandise

Ref.AD022

Location Kent

Asking Price £ 255,000

Confidentially offered for sale

Next Step, please view
Terms & Conditions and submit Confidentiality Form/NDA online

Leasehold

Asking price £255,000 plus Stock at Valuation

Asking price is based upon:

Turnover for the financial year ended March 2008 in excess of £450,000
Gross profit in excess of £115,000
Excellent town centre location next to beach.
Highly skilled and loyal employees.
Established 15 years.
Renowned for quick and reliable service.
No local competition.
Expansion opportunities.
Training/Handover.
Goodwill.
Website

Business profile:

Established in 1994, with a highly desirable town centre location, this business has grown to become the number one domestic household white goods and electrical appliance retailer in the area. With no local competition, the retail and repair sides of this business compliment each other perfectly.

The current owner has made it a priority of the business to provide service levels above and beyond what would be expected from larger less personal retail chains. Prompt delivery also ensures both customer satisfaction resulting in plenty of repeat business and numerous referrals resulting in additional sales.

The owner is involved in the local chamber of commerce and the business also benefits from membership of The Electrical Retailer Association. A key factor in the success of this business is the extensive range of stock that means clients can get what they want, when they want. The nearby storage facility allows for this key ingredient and helps see off competition elsewhere in the county.

Located in an affluent part of Kent this company has built up an enviable level of customer loyalty and with the latest accounts confirming annual turnover of over £450,000 and a gross profit of approximately 25%, this business provides an outstanding opportunity for an existing retailer or for any buyer looking to purchase a ready made successful business in a lovely location.

Key Strength:

The main factors making this business a success include the strong reputation for quality and service that the current owner has achieved. The stock is competitively priced, is delivered promptly and the owner has demonstrated an ability to provide a high quality repair service to compliment the retail side of the business.

Key Opportunity:

There is an immediate opportunity to increase sales by adding new products to the retail side of the business. Greater focus on online advertising and potential for web sales would take the business to another level. Increased opening hours are also likely to deliver higher turnover.

Premises:

The current lease expires in 2017 with a five year review due in 2012. Rent approx. £15,000 per annum and rates approx £3,000 per annum.

Business Hours:

Monday-Friday: - 9.00 am-5.00 pm.
Saturday: - 9.00 am-4.00 pm.

Advertising & Marketing:

The business currently only advertises in Yellow Pages and local press.Referals and repeat business have allowed the advertising budget to remain low, however online advertising and press advertising outside the local area would certainly reap rewards.

Financial profile:

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.

Employees:

The company employs 4 full time staff. All have employment terms and conditions.

Support and training:

The owner of the business is happy to stay on for a handover and to provide training as necessary.

Reason for sale:

The current owner is looking to retire and spend more time at her property in Turkey.

Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk

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