DVD/ CD/ Authoring /Copying Business For Sale

Business description

This is an excellent opportunity to acquire a long established DVD and CD authoring and copying business, with first class commercial relationships, that is ripe for further development. The company was established by the current owner in 1992, when the prevailing technology was compact cassette. Since that time the business has moved to its current location on a busy high street, and for the past ten years has fully embraced the move to CD and now DVD. Current revenue analysis is as follows:

CD services = 70%
DVD services = 30%

The percentage of revenue generated through DVD services is constantly rising and is expected the reach equilibrium within the next 18 to 24 months.

Culturally the company hasa strong ‘we care’ ethos. They will always ensure that a client is fully satisfied with the services provided. This will even extend to giving technical advice, normally outside of their service remit, to ensure complete satisfaction. This has resulted in significant repeat business from the extensive customer base and much new opportunity through ‘word of mouth’ recommendation.


Equipment

In addition to the range of CD & DVD duplicating and printing equipment, the business boasts a fully equipped, digital, audio and video post production studio. This is used by clients who just want post production facilities or is used to improve the quality of their CD & DVD results.

Customer Service

A high level of personal attention sits at the core of this business. Recognising that the CD & DVD authoring and copying marketplace is becoming increasingly competitive, the company has used this approach to ensure complete satisfaction.


Key Strengths

The business is a ‘one stop shop’ for all services related to the copying of volume based DVD & CD replication and duplication. This includes full artwork services for the actual media and storage cases.

Currently there are two methods employed to copy CD & DVD data. Duplication technology is utilised in-house for smaller volumes of, say, less than 500 copies. The replication method, effectively a pressing process, is outsourced and utilised for larger copying runs of more than 500.

Revenue analysis currently shows that 23% is generated through outsourcing with the balance being in-house.

Having been a long established business, the current owner has developed first class working relationships. Organisations currently using services include:

Walt Disney Records
Crown Prosecution Service
Serious Fraud Office
Warner Brothers Films
BBC Radio 1
English National Opera
English Touring Opera
University Of London

A variety of record companies use services including:

Walt Disney Records
Opal Records
Too Pure Records
Artrocker
Organart
Fierce Panda
Demon Music
Shamtown Records

The company has developed a reputation for being particularly flexible when having to achieve a quick turnround for ‘rush’ jobs.
The business is debt free

Property information

Location:

The freehold of the premises is owned by the current owner. He is very happy to grant a new lease, at favourable terms.The premises are close to mainline and Underground rail services. Buses pass the door. Local parking in side roads is unrestricted.

Other information

Expansion potential:

Growth and Expansion

Little direct marketing is currently undertaken. The business would therefore significantly benefit from the development of a strategic marketing plan addressing areas such as advertising, mailings and further development of the website and public relations opportunities.

All company administrative functions are undertaken by the owner: the recruitment of an office manager, initially on a part time basis, would allow for more concentration of effort on external, market based activities. In due course the premises would benefit from a refurbishment programme to allow for the maximisation of space.

Key Opportunities

The company has a database of some 2,000 clients. To date, little exploitation of this rich source of additional revenue has taken place. This would undoubtedly bring immediate reward.

Since only 23% of revenue is currently generated through use of outsourced replication services, this is an area for further development. This can be achieved without a corresponding increase of overhead, meaning that a high profit can be made. Consideration to the employment of a direct sales force, initially one person, would allow for this move to be made.

Support & training:

Unusually, the current owner will be prepared to undertake an extended period of handover, to ensure a smooth transition to new ownership.

Reasons for selling:

Having established the company more than fifteen years ago, the current owner is looking to concentrate on his other business and sporting interests.

Trading hours:

The business is open during the following hours: 10 am - 6pm Monday to Friday