Growing & Profitable Web Design & E-Commerce Business For Sale

Business description

The opportunity to acquire a well established and fast growing web design and development business with a substantial customer base and valuable intellectual property in e-commerce and other functional web based technologies. The company generates a high proportion of sales from a broad mix of existing corporate and SME customers.

The company produces stylish and functional websites but its real focus is on getting across the client's marketing message and delivering advanced functionality. They pride themselves on talking business long before the discussion moves to technology, and on creating websites and e-commerce functionality that quickly pay back the client’s investment. Approximately 70% of the company's work is now involved with e-commerce or other web based functionality rather than traditional brochure-ware sites.

Unusually for a web design business of its size the company has invested heavily in professional sales resource. This has positioned the company to compete for major projects that when converted will fuel rapid and profitable growth.

The company's sales strength is complemented by a high quality technical team that has developed in-house e-commerce and industry specific functionality that offer valuable intellectual property to a potential buyer. Web based functionality has been developed to high technical standards incorporating modular features that shorten development times by allowing developers to “bolt together” functional elements to meet specific customer needs.

Property information

Property:

Leasehold

Location:

Situated in Business Centre premises on a busy arterial road approximately one mile from the centre of a large and growing market town.

Premises details:

Accommodation consists of a large open plan office and a conference room equipped for client meetings.

Rent: £7,600 per year (annual license)
Rates: £2500 per year

Other information

Expansion potential:

With its strong sales team the company has genuine strengths in generating new clients, and is effective at winning repeat business from existing clients. Further growth is expected in three main areas over the next few years:

o A further move into the London web design market that has already been started with the launch of a London focused website;
o Stepping up efforts to cross sell upgrades and improved functionality to both brochure-ware and e-commerce customers in the existing customer base;
o Building strategic relationships with graphic design and marketing consultancies to cross sell capabilities.

The company is using its technical strength and professional sales approach to bid for larger development contracts, some in excess of £100,000 value, that are expected to be awarded in the next few months. Converting one or more of these contracts will add considerably to sales and profits in 2009/10 and the following year.

Competition / Market:

Although there are a very large numbers of one and two man web design companies operating in the local market the company know of only a limited number of competitors active in their local market who can match their technical and design skills. Increasingly the company is competing for larger e-commerce and functional web development projects against London and wider UK based agencies on a national basis.

Support & training:

The seller is willing to offer full training and support to buyers. The quality and depth of the management team should however ensure a smooth handover.

Reasons for selling:

Owner recognises the business needs a different set of leadership skills to move to the next level.

Trading hours:

Normal Office Hours