Pr Agency In Travel And Tourism Specialist For Sale

Business description

Business overview

– Outstanding opportunity to acquire a successful PR consultancy, based on the south coast of the UK, focused on the travel and tourism market.

– The business has delivered consistently strong growth over the past 4 years despite the recession and achieves an EBITDA in excess of 30%.

– Established in 2003, the business has developed an extremely loyal client base, evenly spread with no one client representing more than 13% of the revenue.

– As of March 2012 the company services 10 clients on monthly contract. These recurring fees represent c. 90% of the total revenue which is very good in the PR sector.

– Over 90% of current business is from the existing client base (those on monthly contracts), which leaves room for the business to expand through additional marketing/PR activities as well as leveraging a trade or adjacent trade buyer’s existing client base.

– The business is able to offer its services across the UK and internationally and most employees are members of the recognised trade institution, the CIPR. Clients include travel companies and large hotel groups from around the world.

– The company has maintained a strategy of growing and training its team despite the slower growth in the last 2 years, and now has a loyal, experienced team of personnel in place and ready to take on the 40% growth seen in 2011.

– This business would be of particular interest to other PR agencies that are looking for a strategic acquisition to add to their portfolio. Significant synergy savings are possible for such buyers who already have a base on the South Coast (UK).



Products and Services

– The PR agency builds its clients revenues through creating positive media coverage in the UK, Ireland and for some clients the USA. Services include:


- PR campaigns
- Press office
- Press trips
- Promotions
- Launches
- Event promotion
- Online media coverage for SEO and social media advice

– The agency offers PR consultancy tailored for the travel and tourism market.

Employees:

- 2 directors (vendors) + 4 staff

Premises:

- The business operates from a leased office.

- Rent: £11,000 per year including rates and utilities, Renewal: April 2013

Reason for sale:

- The vendors wish to concentrate on other unrelated projects.


Financial overview

Year End 31st December
Forecast 2011
Sales revenue: £226k
Adjusted EBITDA: £72k (32%)

The adjusted EBITDA is stated before having paid the replacement cost of the vendors.

Significant synergy savings of £16.6k are possible through consolidation of the premises and other administrative costs. Based on the 2011 figures, this would enable the strategic buyer to achieve an EBITDA of £89k.


Offers invited

Property information

Property:

Leasehold

Business Operation

Reasons for selling:

The vendors wish to concentrate on other unrelated projects

Trading hours:

9am - 6 pm Monday to Friday

Employees:

2 directors plus 4 staff

Years established:

8 years

Other information

Related documents:

• 
• Confidentiality Agreement

• 
• Business Summary

Relocatable:

This business can be relocated.