Suppliers of Audio Equipment to the Music Industry For Sale

Business description

Leading Suppliers of Audio Equipment to the Music Industry for Live Concerts and Festivals

Built around the current Owner’s thirty years’ experience in the industry, this business is one of the oldest established providers of audio equipment to the music industry. Concentrating very much on the ‘professional’ end of the market, this business has a Client list that features some of the biggest international music stars having provided equipment to an array of leading acts as diverse as Depeche Mode, Bob Dylan, Rat Pack, Madness and The Pogues – and at some of the biggest live concerts and festivals worldwide.

The range of hardware this business can supply is the most extensive and modern available including consoles, amps, crossovers, speaker boxes, microphones and monitoring and outboard equipment from most of the leading manufacturers in the world including Shure, L-Acoustics, Lab Gruppen, Denon, DBX, Behringer, Beyer and AKG. Working on UK, European and even Worldwide tours, this business can supply sound equipment from a single microphone up to a full concert arena system and beyond. In addition, the business has access to the very best professional technicians to ensure the optimum results are achieved from the equipment supplied.

Operating from a home office environment with stock held, when not out on tour, in a large warehouse nearby, this business prides itself on its unrivalled product knowledge. Very well known in the industry, this business carries a wide range of equipment in stock and if a particular piece of equipment isn’t readily available will use its wide range of music industry contacts to find it. With its unrivalled reputation, it is in the best possible position to give totally unbiased advice and is able to offer the most appropriate equipment for a particular requirement – always avoiding the potential for under specification and taking into account the power requirements placed on any particular venue. This combination of product knowledge, great service, a wide ranging equipment portfolio together with the ability to source to meet specific requirements has established this business as a genuine market leader, ensuring Clients return time and time again.

With turnover for the first nine months of the current financial year – to June 2009 of almost £365,000 with gross profits in excess of £180,000 and a pre-tax net operating profit in excess of £100,000, this is an excellent opportunity to acquire a very well established business - one of the leading operators in its sector within the music industry.

Key strengths:

With a reputation spanning over thirty years, this is one of the most respected businesses in its sector. As a result this business has worked with some of the biggest names in the industry. It enjoys high levels of awareness and as such is at the top of many artists’ and their managements’ lists. It has an extensive, loyal Client base.

Aside from its own extensive inventory, this business has excellent contacts and relationships within the industry to ensure a wide range of additional stock is available or equipment can be readily sourced at very competitive prices. The business is frequently involved in intra-renting within the industry.

The business is well known for its consultative approach to any particular requirement – always avoiding the potential for under specification and taking into account the power requirements placed on any particular venue. Not only can this business supply the very best and most appropriate equipment but it has also established an unrivalled reputation for employing only the very best, professional people to get the very best results from the equipment supplied.


Key opportunities:

There is an outstanding opportunity to build on the existing services and customer base of this business. With a strong demand for its services combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources, particularly in the areas of sales and marketing will have every advantage of building on an excellent platform.
Whilst this business has a vast array of equipment at its disposal there is no doubt by investing in additional equipment would reduce the volume of equipment the business has to buy in from other sources – with a significant impact on turnover and profitability.

Similarly whilst this business could be an excellent bolt on for a lighting, video or transport specialist, there is the possibility of using the acquisition of this business as a spring board to creating a full service concert company – a ‘one stop shop’ for all the hardware required to stage major live entertainment events.

Equipment:

The equipment this business has available is amongst the most extensive and modern found within the industry. It includes consoles, amps, crossovers, speaker boxes, microphones and monitoring and outboard equipment from many of the leading manufacturers in the world including Shure, L-Acoustics, Lab Gruppen, Denon, DBX, Behringer, Beyer and AKG. All equipment has been very well maintained and is thoroughly checked before going out on tour.
The business sub contracts out all transport requirements.

A full inventory of equipment is available on request and subject to the completion of the usual Confidentiality formalities.

Financial Information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and interested parties under the auspices of Turner Butler.

Turnover for the first nine months of the current financial year was approximately £365,000 with gross profits in excess of £180,000 and a pre-tax net operating profit estimated to be in excess of £100,000.

The Asking Price of £430,000 is for a sale of the shares in the business based on a revised Balance Sheet of £230,000 taking into account the true value of the extensive inventory of equipment within the business – estimated to be in the region of £250,000.

Property information

Property:

Leasehold

Lease terms:

Rent is £10,200 per annum including Rates and electricity.

Location:

With its extensive stock of equipment stored in a rented warehouse nearby, the business currently operates from a home office environment. Whilst the warehouse facilities almost certainly could be secured by new owners, the operational base will be required to be re-located. With all trading being done remotely – by telephone, e-mail or in person at the offices of production Companies, on-site etc, this will have no impact on its trading position whatsoever.\

The current warehouse is secured on an ad hoc rental basis. Including a small workshop facility for the maintenance equipment the warehouse is approximately 4,500 square feet in all. Rent is £10,200 per annum including Rates and electricity.

Other information

Competition / Market:

Whilst the business has a regular display ad in the most influential trade directory within the industry, the name, having been a consistent presence within the sector for over thirty years already benefits from significant trade awareness. What pro-active marketing is undertaken, is generally limited to direct approaches to Production Offices at the early stages of their event planning. The business also has a very well designed and informative website that performs very well in all the major search engines for relevant search terms but by far the most effective form of marketing for the business is the strong word of mouth recommendation the business enjoys – testimony to its outstanding reputation within the music and entertainment industry.

Support & training:

The current owner will fully assist with all hand over and training to ensure a smooth transfer of the business to new owners – and would consider an on-going Consultative role in any organization acquiring the business, subject to negotiation.

Reasons for selling:

The current owner wishes to ease himself into retirement.