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Online E-tailer of Highest Quality “Clipped in” & “Pre bonded” Hair Extensions

Extensive range of human and synthetic products

Ref. AB242

Location : Surrey

Asking Price : £595,000

Turnover : £1,260,000

Net Profit : £237,000

Gross Profit : Undeclared

EBITDA : Undeclared

Net Asset : Undeclared

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Leasehold

Asking price: £595,000 + SAV

Business highlights include:

Turnover circa £1,260,000 per annum
Adjusted Net Profit circa £237,000
Stock (Trade value) circa £140,000
Comprehensive website with full e-commerce
Fixtures & fittings
“Hard to get” product portfolio
Exceptional Social Media following
Significant Goodwill

Business Profile

The business was established by the present owners in 2009 and has become an extremely well established mainly online retailer specialising in hair extensions, including human hair and synthetic material. The range on offer is one of the widest available online and while it can be said that products are shipped internationally to customers from all corners of the globe, 90% of current sales is in the UK and 90% of all trade is online.

Despite the bias toward online sales the company believes that a high street presence alongside its warehousing and office provides a visual focus for the customer.

The business has developed an enviable Ebay presence and strong social media following that results in a high degree of direct sales and such customers that begin their relationship with this retailer through its Ebay account and go on to become long term customers with the main retail site.

In 2014 the company held the EBay record for most visits!

The real power and energy of the online shop comes from the quality and reputation of the Ebay and social media activities, the nature and quality of the online following and the high levels of customer service and satisfaction they generate.

The company operates from offices and storage premises that also include a retail space; te vendor believes that a High Street presence is useful in promoting the company’s tangible credibility.

Not surprisingly, the shop enjoys a good level of patronage – including many international customers on the company database; the store enjoys a high percentage of repeat custom, empowered by the nature of the products represented.

The target market for the online shop is typically female and aged 16 – 40 years old.

This opportunity is an ideal business for anyone looking to engage with a successful E-tailer in this specialist product area or for someone already in the sector looking for a strongly performing, additional outlet to bolt onto their existing business activities.

Competition is considerable but this company has developed rapidly, both in its turnover and profitability and also in its development of its product portfolio; this is considered by the vendors to be a sector that shows no signs of slowing down. Because of increasing demands on the vendors’ family life, they believe it appropriate at this time to hand the business over to a new owner with the time and enthusiasm for continued growth and development of the whole offering.

Equipment:

The shop has all the equipment normally associated with a business operating in this sector and has full e-commerce capabilities.

Customer Service:

This online retail shop is renowned for its customer service, paying attention to customers’ requirements and offering a delivery service anywhere in the world.

Key Strengths:

• Exceptional Ebay ratings and Social Media following
• Highest quality portfolio
• The breadth of choice in combination with the quality of service provided, makes this online retail shop stand out among the many competitors
• The shop is very well known within its target sector
• Favourable courier rates
• The stock holding is wide & various and retains its high value over time

Key Opportunities:

The business could:

• Increase its brand and product portfolio
• Go beyond hair extensions to complementary products
• Develop a stronger Retail Brand presence for the shop
• Widen appeal to other special interest groups

Financial Information:

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.

Turnover circa £1,260,000 per annum
Adjusted Net Profit circa £237,000
Stock (Trade value) circa £140,000

Asking Price:

The Asking Price of £595,000 plus Stock at Valuation is for 100% of the issued capital of the company, assuming Net Assets of circa £140,000 on completion (calculated on a zero cash-zero debt basis). The company is being sold with a Net Asset Value of £140,000 (the “Benchmark NAV”) and there will be a £ for £ increase/reduction in the final sale price to reflect any deviation from this Benchmark NAV in the final completion accounts.

Advertising and Marketing:

Internet only, to include Search Engine Optimisation, EBay, Facebook and a company YouTube channel.

Growth and Expansion:

The business has grown organically and further marketing for both the shop and website could build on the existing excellent customer base.

Premises:

The premises are leasehold and  arranged very flexibly, with no long term commitment.. The square footage for the retail area is circa 500 sq. ft., the office area is circa 600 sq. ft. and the warehouse and despatch area is circa 800 sq. ft.

The rent is circa £30,000 per annum.

Business Hours:

Office: Monday – Friday; 09:00 – 17:00
Retail shop: Monday – Saturday; 10:00 – 17:00

Employees:

The vendors are more than ably supported by three key full-time staff, 1x despatch manager including picking & packing and 2x administrators responsible for day to day management and customer service enquiries.

Support and Training:

The owners are happy to provide training for an agreed handover period.

Reason for Sale:

The vendors wish to commit more of their time to the demands of their young family.

Looking for finance ?

If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at finance@turnerbutler.co.uk

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