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Heavy Plant/Power Unit Supply Company-Generators, Transformers, Chillers, Engines, Compressors
Inc. spares, servicing, sales and repair

Ref. AD041

Location : Scotland & Dubai

Asking Price : £4,500,000 inc. Stock of c£4 m

Turnover : £4,950,000

Net Profit : Undeclared

Gross Profit : £775,000

EBITDA : £500,000

Net Asset : £4,000,000

Premises : Freehold

Confidentially offered for sale


  • Turner Butler

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Asking price: £4.5Million (inc. Stock of c£4 million)

Asking price includes:

Preferred buyer agreements with international market leading companies
Worldwide marketplace
Sales of circa £4.95 Million p.a.
Gross Profits circa £775,000 p.a.
Typical EBITDA circa £500,000+p.a.
Stock circa £4 Million
Superb freehold site circa £600,000
Net assets c£3.87m

Extensive client base
High quality stock with huge profit potential
Sales Management in place
Excellent reputation
30 years successful trading
Goodwill
Website

Business Profile

This highly successful business was established some 30 years ago and specialises in the purchase (direct from manufacturers) and resale of largescale used/secondary power supplies and associated heavy construction plant. Typical products this business supplies includes large scale industrial:

  • Generators
  • Transformers
  • Engines
  • Chillers
  • Compressors
  • Storage Containers
  • Pumps
  • Distribution Panels and Switchgear

The business is rather unique in that it holds preferred buyer status with many of the largest power generator manufacturing companies in the world. This enables the company to have “first refusal” when such units are available for resale throughout the world, as well as access to the full range of spares and ancillary items from each manufacturer. These agreements, with instantly recognisable global companies, are highly prized and enables the business to operate successfully on a worldwide basis, such is the demand for the manufacturers’ ranges of equipment. .

The company has a healthy stock of in-demand stock and spares that are stored at its fully secured site in Scotland as well as overseas.

The business has established an excellent reputation for providing high quality wellmaintained products and unrivalled after-sales service, providing one of the most extensive repairs and spare-parts back-up services in the industry. Through this continued commitment to client care and the business’s reputation for integrity, it has built a sterling reputation based on trust and quality of supply.

The business offers a hire facility as well as sale and this is an area ripe for future expansion, particularly in regard to transformers as this is a relatively new offering for the business and showing good growth at present.

The business employs expertly trained staff.

Its UK premises are freehold and fit for purpose, fully secured with full concrete/tarmac yard and full container loading facility.

The business has established itself at the forefront of the industry with its continued commitment to quality and an excellent reputation for getting the job done and managing delivery/installation projects successfully. It has excellent credibility which gives it unique buying power which in turn generates impressive profitability.

Customer Service:

  • Only deals with reputable manufacturing companies
  • Business provides comprehensive spare-parts and service/repair backup on equipment
  • Wide range of products available
  • Friendly and efficient staff
  • Excellent lines of communication with clients
  • The equipment is the best available and offers excellent value for money

Key Strengths:

  • Preferred buyer agreements (with first refusal status) for sourcing heavy plant from worldwide market leading manufacturing companies
  • Few competitors can match the standard of equipment and rates
  • No other suppliers have the same range of spares
  • High profit margins
  • Preferred supplier to existing/historical clients for ongoing spares/repairs requirements
  • Full turnkey delivery service
  • Items are promptly supplied and delivered, providing a distinct competitive advantage
  • Supplies in demand and unique plant requirements

Key Opportunities:

  • Excellent opportunity to expand operation as demand is huge and the need for

power is growing on a global basis.

  • Opportunity to expand advertising and increase new sale capabilities through further

sales and marketing activity.

  • New generations of plant constantly being developed to improve efficiency that

ensures constant renewals and replacement of equipment . This is also driven by

legislation and directives on a local and global scale.

  • The business has achieved impressive results to date with limited resource. Further

investment in staff will open new markets, improve account penetration and lead to

increased sales fuelling already lucrative profit margins.

Financial Information:

The business is being offered for sale on an ongoing concern basis. All financial discussions will take place directly between the vendor and any interested party under the auspices of Turner Butler.

Sales for last financial year circa £4.95 Million p.a.

Gross Profits circa £775,000 p.a.

EBITDA circa £513,000p.a.

Stock circa £4 Million

Ideal freehold site circa £600,000

The business is in a very healthy state and has many opportunities at its disposal.

Asking Price:

The Asking Price of £4.5Million is for 100% of the issued capital of the company and is based on the Net Asset position of the company being £3.87Million at time of the sale. Should the net asset position be different from this the price will be adjusted accordingly on £ for £ basis.

The current asking price includes the freehold site and SAV of c£4m.

Advertising and Marketing:

The business has a basic yet informative website which showcases current stock lists and services. There is excellent scope to utilise this further and undertake more assertive marketing methods in the form of Search Engine Optimisation (SEO), national/international press and exhibitions as well as expanding the sales force.

The business has a large historical client base and supplied product throughout the world. It has enjoyed impressive amounts of repeat /ongoing and referral business from customers which bears testimony to its excellent reputation.

Premises:

The business operates from modern freehold premises based in Scotland as well as leasehold offices in Dubai. Freehold site in Scotland is circa £600,000 and included within the sales price. The site is fully secure, fenced and concreted/tarmaced. Site has offices, workshop, racked out spares/parts centre and equipment storage buildings. It has the necessary plant and equipment to facilitate container loading.

Employees:

The owner works in the business on a strategic basis and is responsible for the key decisions within the company. However he is by no means full time and spends a lot of his time abroad. The business employs a highly capable Sales Manager who is based in Dubai but travels extensively as part of his role. He is a real asset of the company. The Scottish site has a full time manager and 2 yard operatives, as well as 2 part time administrators/PAs.

The vendor is happy to remain with the business for up to 2 years post sale should a new owner so require, subject to negotiation.

Support and Training:

The owner is happy to assist with the hand over and the training so as to ensure the continuity of this successful business. As already mentioned the vendor is happy to remain in the business for up to 2 years post sale should a new owner so require, subject to negotiation.

Reason for Sale:

Planning exit strategy to enjoy retirement.

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