UK Facilities Management Business For Sale

Business description

A fast-growing Facilities Management and M&E Maintenance business based on Long Term Contracts. Its business model makes it recession-resistant and provides it with both sustainable sales and a basis for continued growth. Its forward order book is currently £23M. It is strong in the Healthcare, Financial Services and Corporate sectors where it focuses on multi-site clients with large asset portfolios. It is currently turning over £15M with a sustainable PBT of at least £1.6M and plans sales of £20M within 3 years. It is debt-free, needs little working capital, and has strong cash flow. Asking Price £8.75 plus surplus cash.

Property information

Property:

Leasehold

Location:

industrial estate situated proximate to all major customers

Premises details:

workshop and offices totalling 19000 square feet

Size in square feet:

19,000

Other information

Expansion potential:

It has grown quickly even through the downturn of 2008-2010 and the same business model continues to deliver growth now. It has plans to grow turnover by a further 33% over the next 3 years.

Competition / Market:

it wins market share by having greater technical strength and also a higher service level than its competitors most of whom are large national players. It has now grown to a level where it can for the first time compete for larger contracts and customers.

Support & training:

as required, but a full management team will remain

Reasons for selling:

Having now become a substantial business both in terms of sales and profits, the founder directors now feel it is timely to sell a majority shareholding; While both are passionately committed to continue managing and growing the business with which they continue to strongly identify, for personal reasons they each want to realise the bulk of the capital they have built up there. They are both relatively young, with young families and want to consolidate a threshold level of family financial security. There is a second strategic reason. Both feel the business has acquired such relative scale that it would be wise, in order to safely maintain the historical growth rates to bring in an active chairman investor or else a corporate buyer who could add significant new value or corporate synergies, and this is best done by ceding a controlling shareholding. Ideally then, both would continue post-sale to run the business day-to-day but under the longer-term strategic direction of the new buyer. Depending on the buyer, they may be willing to sell 100% of their shares but ideally would wish to retain a minority shareholding, and continue growing the capital value of the business longer term.

Trading hours:

5-6 days per week

Related documents:

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• standard nda 1.18

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• summary1.18