Specialist Residential And Commercial Interior Designers For Sale

Business description

This highly regarded, premium quality, interior design and furnishing business was established by the current owners more than twenty five years ago. Since that time it has built an outstanding reputation as the supplier of choice in its locale – the an highly affluent Home Counties town of Amersham South Buckinghamshire to the North of London.

Operating from excellent high street premises, with local buses passing the door and nearby Underground services to Central London, the business benefits from opening from Monday to Friday only, allowing the busy current owners to enjoy a two day weekend – an unusual luxury for a retail business.

The highest levels of personal and discreet service, a number of well known celebrities use the company, are an integral part of the business. Clients typically visit the showroom when initial consultation takes place. Subsequently a visit will be made to the home when designs can be finalised and fabric choices made. At this stage accurate measurements are taken and the manufacturing process will then be commissioned. The quality of completed product is of the highest standard. This has directly resulted in much repeat business, even when people move away from the immediate area. Clients are now as far away as the South Coast, as well as Central London.

As further evidence of the reputation of the company, in excess of 80% of new business is gained through referrals and direct ‘word of mouth’ recommendation.

Over the recent past the business has developed a sound reputation in the commercial market place: this now represents circa 15% of total sales. Offices, banks and foreign embassies have commissioned interior designs. The company also enjoys sound relationships with a number of national and local housebuilders, who will commission the furnishing of show homes at local developments.

A major aspect of the company’s success is as a result of stocking a comprehensive range of exclusive fabric manufacturers, of which the business is the only local stockist, and include:

• Colefax & Fowler
• Jane Churchill
• Designers Guild
• Andrew Martin
• Romo
• Osborne & Little
• Nobilis Fontan
• Baker
• Zimmer & Rohde

The company will make an excellent acquisition opportunity for any business seeking an opportunity to expand their current services into this region. Similarly an owner manager can choose to take advantage of this established business avoiding time consuming, costly and risky start-up situations.

Customer Service

This is the foundation stone of the business. In particular the ability to understand the needs and motivations of the client and transform that from design to reality has been the secret of the success of the present owners.

Key Strengths

This is a successful business, operating at the top end of the market, in an affluent area, where the typical client is ‘cash rich yet time poor’. This means that by providing a high level of design advice and personal service, much new business will be won. Currently circa 95% of all enquiries are converted into firm orders – a remarkable success ratio.

The business wins circa two hundred commissions per annum ranging in value from a few hundred pounds to many tens of thousands: typical average contract value will be circa five thousand pounds.

The quality of the final product is of an exemplary standard. The business has developed excellent relationships with the manufacturing workrooms and very little remedial work is ever necessary.

The company could trade for six days per week to take advantage of potential Saturday business.

Financial Information:

The business is being offered for sale on a going concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business is financially stable with no borrowing and enjoys a strong order book with high gross and net margins and has shown consistent performance since trading begun.

Property information

Property:

Leasehold

Lease terms:

Passing rent is £20,000 per annum.

Location:

The leasehold premises are held on a lease expiring in February 2011. Passing rent is £20,000 per annum. An upstairs apartment is let at a monthly rent of £695, reducing the company’s net rent to less than £12,000 per annum.

The shop and office areas occupy circa 550 square feet.

Business Operation

Competition / Market:

The company’s professionally designed, maintained and hosted website serves as the main ‘shop window’ to the business. The stage has been reached however where the development and execution of strategic marketing plan, addressing all media activities, would undoubtedly be of great benefit.

Reasons for selling:

This is a genuine retirement sale. A stage has been reached where the owners wish to retire and are offering the business for sale not only as an organically expanding going concern but with further significant growth potential.

Trading hours:

Current business hours are as follows:

Monday, Tuesday, Wednesday & Friday: 9.30 to 17.00
Thursday: 9.30 to 13.00
Saturday & Sunday Closed

Employees:

With the exception of the owners, all fitting and workroom staff are sub contracted to the business.

Other information

Support & training:

An extended period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.