An ideal opportunity to acquire a recession proof business with tremendous growth potential and year round profits. Would suit a new entrepreneur or a bolt on for an expanding company.
The Business
Started less than three years ago by the two partners; ‘Site Acres’ has grown exponentially in the short time that it has been established. Right from the word go, fastidious attention to detail has been implemented with regards to the image that the owners wanted to portray to their corporate and residential clients. From the sign written vehicles down to the logos on the t-shirts every effort has been made to promote a professional image and it has paid off because the company is now regarded as the premier maintenance company in the area with an unrivalled reputation and loyal customer base. This includes secure ongoing contracts with property management companies, housing associations, industrial estates, property developers etc. These contracts are paid on a monthly basis, providing year round income and therefore steady cash flow. The smaller private jobs, covering every aspect of garden design and care, are fitted around the contract work.
The company provides a comprehensive range of other services including landscaping, and site design for new builds through to complete overhauls of existing grounds, plus fencing, block cleaning, window cleaning, patios etc.
Location
The business is based near Stanford-Le-Hope in Essex, which is a thriving area that will benefit significantly from the £1.5 billion ‘Superport’ being built soon, providing twelve thousand new jobs. http://communities.greengrid.co.uk/node/91
Although the company is based in South Essex they have intentionally targeted a wide radius that includes Essex, Hertfordshire and much of London. Because of this large target area there is no lack of new business potential available to fuel the tremendous growth that the partners have enjoyed so far and aim to continue in their aggressive expansion plans for the future.
Premises and Tenure
The business is currently run from a rented unit however it is entirely relocatable within the thirty-mile radius that the business covers. The premises cost £650.00 a month (with £650 deposit) and require 1 month’s notice. The administration side of the business is run from home at present.
Assets
The assets include two Transit Flareside vans and one Escort van (all sign written), two trailers, and all ancillary tools and equipment required to run the business. Plus website and domain name.
Marketing
The business is surprisingly successful considering it does very little advertising (apart from Yellow Pages etc.), relying on its reputation, repeat business and word of mouth to grow the business. There is also a very effective website www.siteacres.co.uk which explains their services and demonstrates their work with a series of ‘before and after’ photographs.
Financial Information
2006 2007 2008 (forecast)
T/O £13,000 £85,000 £130,000
N.P. £ --- £33,000 £50,000
Full accounts will be available to potential purchasers on request.
Trading Hours
The partner’s follow a sophisticated schedule, which is planned to smooth the workload over the weeks. Saturday work is occasionally necessary to satisfy customer requirements if this is unavoidable. Scheduled work can be rearranged to allow for holidays and a two-week Christmas shutdown period.
Personnel
At present all work is handled by the two partners with occasional help from a third employee on a casual basis. Although both partners will be leaving on sale of the business, the other employee would be happy to stay if required and would provide valuable knowledge and continuity. He could even be considered for the job of foreman as the business reaches capacity and requires more staff.
Potential
As mentioned above the owners run the Business to a very high standard and have a very professional website. However that does not mean that there is no scope for expansion/diversification. Several very large and lucrative contracts are currently in negotiation, which could substantially increase the turnover in the very near future. (Please call 0844 561 1806 for the current situation regarding these).
This type of business can encompass many other complimentary services which the current owners have not had time to explore. Also local authority work could be tendered for.
The business workload is not yet at full capacity however when this point is reached the natural progression would be to employ more staff to work in pairs on the contract maintenance side allowing room for further expansion.
The business has prospered perfectly well through word of mouth and repeat custom however more aggressive marketing should be considered to increase turnover further.
Reason For Sale
The owners have been offered another opportunity in France that will require their full attention and emigration is inevitable.
They are more than happy to provide an adequate handover period to provide an opportunity for the new owners to become acquainted with the business, the staff, and the clientele, and continue the enviable reputation that this business has built up since its inception.
Comments
This business would be an ideal add on for a successful landscaping or maintenance business that wishes to expand through acquisition with the minimum or work involved. It would also provide an excellent opportunity for an individual with or without experience who wishes to strike out on their own without the normal start up risks and the wonderful reputation and immense goodwill that goes with the business already in place. Either way this is a unique opportunity to purchase a popular and thriving business and early discussions are highly recommended.
NB Should the business be purchased as a ‘bolt on’ by a larger firm, the vendors are willing to omit the vehicles and tools from the sale and reduce the purchase price accordingly.
Price £250,000 Funding can be arranged please ask for details.
The Next Step
If you require any further information or would like an appointment to view the business. Please telephone 0844 561 1806. Viewing is strictly by appointment only, through ABC Business Brokers and no approach whatsoever should be made directly to the vendor.
Early viewing is advised
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