Video/Audio Media specialists System Integration/Solutions For Sale

Business description

Video & Audio Media specialists
System Integration & Solutions
Leading equipment Supplier
Superb Development
Potential

This very well known supplier of media production equipment to the video and audio market was established by the current owner four years ago. Since that time it has built significant presence within the market place through a mixture of entrepreneurial spirit and market knowledge.

The owners accurately predicted that Apple would be a dominant force within these markets. They therefore set about ensuring that they would be granted preferential status from Apple Computers UK. This they have achieved since the company is now recognised as Apple Computers leading UK ‘Solution Expert’ – a remarkable achievement for such a new business. The company can be often seen co-marketing at key industry events.

In only a relatively short period of time the company is generating revenues well in excess of £1.1m. The forecast turnover for y/e 31st January 2008 is £1.3M, representing the winning of significant new orders and greater market share. Gross profits will be circa £320K (20%).

The business has a healthy mix of clients equally split from the professional and consumer markets.

The company sells into three main markets as follows:

Video, circa 40% of current sales
o Typical customers
? Amateurs
? Videographers i.e. corporate videos, wedding videos
? Broadcast Media e.g. TV commercials, Pop Videos
? Broadcast Channels
? Movie Makers – smaller companies



• Audio, circa 25% of current sales
o Typical customers
? Amateurs/Hobbyists e.g musicians and DJ’s
? Semi-Professionals
? Professionals including Studios, Producers, Engineers, Bands/Artists, Music Publishers & Education

• Apple Mac, circa 35% of current sales
o Typical customers
? Any person or commercial/educational enterprise buying Apple Mac equipment


The introduction of High Definition (HD) television is further driving market demand. The need to capture, edit, animate, mix and master in this format is producing orders from both the professional and home consumer video markets.

The company has significant internet presence: the majority of business is generated through this source. A full ‘e-commerce’ enabled web site produces in excess of 70% of annual sales.

In addition to Apple Mac the company stocks equipment from other well known brands including:

• Yamaha™
• Pro Speakers & Monitors
• Mackie®
• Digidesign
• MOTU
• Waves
• Focusrite®
• t.c.electronic
• Argosy® (Studio Furniture)
• Proavio™
• Sony™

The company recently won a Mac User Award in Mac User Magazine for the Pro Avio™ desk top storage system, the most powerful and fastest system retailing at under £1000: it outstripped all its competitors in terms of speed and security.

To ensure that the dealer channel is developed to its full potential, a new member of staff has recently been recruited who will focus on this area.

New products have also been introduced including the Motu V3HD – this innovative product turns a Mac or PC, desktop or laptop, into a powerful High or Standard Definition video production workstation equipped with all the necessary video and audio I/O.





Equipment

For demonstration purposes a broad range of equipment is utilised within the three main market areas of audio, video and Apple Mac.






Customer Service

The highest levels of personal service sit at the heart of the company’s customer engagement strategy.

Key Strengths

The Company stocks only the best and most well known brands which provides for immediate presence. This is combined with competitive pricing, first class market and product knowledge, and a demonstrable ‘easy to do business with’ attitude. This is undoubtedly a winning combination. The business consistently delivers the highest levels of client satisfaction and renowned systems integration knowledge. These qualities are often lacking in many companies.

The business does not provide credit facilities to any consumer or business customer: there is no bad debt. The company is a licensed credit broker and financing facilities are provided to circa 80% of clients through major banks and finance companies. Average order value is circa £2,500.

Working through a ‘Just in Time’ stock system means that very little stock is held and that most orders are delivered from the manufacturer direct to the customer. No warehouse space is needed.

The company has always recognised the importance of investing in Information Technology to serve as the driving tool for the business. This has proved to be a sound strategy.


Key Opportunities

To date the company is producing sales of circa £100,000 per annum through a distribution channel to other retailers. The current owners are confident that this route can drive a significant increase in turnover in the years ahead.

Property information

Location:

The business is currently run very successfully from the owners’ dedicated sales office and store room. The new owner would need to relocate the business in due course. Since the main channel to market is the internet, the business can be readily relocated anywhere within the UK or even overseas.

Other information

Expansion potential:

The Company stocks only the best and most well known brands which provides for immediate presence. This is combined with competitive pricing, first class market and product knowledge, and a demonstrable ‘easy to do business with’ attitude. This is undoubtedly a winning combination. The business consistently delivers the highest levels of client satisfaction.

The business does not provide credit facilities to any consumer or business customer: there is no bad debt. The company is a licensed credit broker and financing facilities are provided to circa 80% of clients through major banks and finance companies. Average order value is circa £2,000.

Working through a ‘Just in Time’ stock system means that very little stock is held and that most orders are delivered from the manufacturer direct to the customer. No warehouse space is needed.

The company has always recognised the importance of investing in Information Technology to serve as the driving tool for the business. This has proved to be a sound strategy.


Key Opportunities

To date the company is producing sales of circa £100,000 per annum through a distribution channel to other retailers. The current owners are confident that this route can drive a significant increase in turnover in the years ahead.

Competition / Market:

A marketing plan addresses the following activities: • A professionally hosted, designed and maintained website, which has been fully optimised. Google™ AdWords are utilised. • Regular advertising is placed in specialist magazines including Sound on Sound, TV Bay, Soho news. • Specialist websites are utilised including TV Bay.com. • Exhibitions are frequently used which include Broadcast Live, Institute of Videographers, Cannes Film Festival, Mac Expo, Video Forum and Channel Expo. • Circa 10,000 names are held on the client database. They are mailed at least twice per annum As the company expands a new strategic marketing plan will be developed and executed addressing all media.

Support & training:

Unusually the current owners will agree to an extended period of handover, training and familiarisation to ensure a smooth transition to new ownership. The Managing Director will be happy to offer his services on a part time ongoing consultancy basis on a longer term, if required transition to new ownership. The current managing director will be happy to offer his services on a consultancy basis longer term, if required.

Reasons for selling:

The current owners are looking to dispose of their interest in the business to enable them to concentrate on their other professional activities.