Asking price: Undisclosed

Sales revenue: £525,000

Net profit: £175,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Business overview

An outstanding opportunity to acquire a successful structural engineering consultancy based in central London.

Established in 1985, this is a profitable and cash generating business, which continues to achieve stable revenue despite the current economic climate.

Fee income has grown steadily each year reaching a revenue of £525k in both April 08-09 to April 09-10

With a ready made client list including housing associations and local authorities as well as private individuals and companies, this business represents an excellent opportunity for an architectural or other engineering consultancy to acquire new business with little additional overhead or advertising.

Equally the business would be of interest to individual qualified engineers looking to start their own practice with a ready made client base and business infrastructure.

Over 90% of the business is recurrent work from the existing client base, which leaves room for the new buyer to expand the business through re-invigorated marketing.

The consultancy is ISO 9001:2000 quality assured, EXOR and Construction Line accredited and a member of the Association of Consulting Engineers (ACE). It is also an approved supplier with Tower Hamlets, Greenwich and Southwark councils.

Products and Services

Structural and civil engineering services for all stages of project development, including design, drafting, analysis and reports.

The business provides a one-stop service for planning, engineering, contract administration and quantity surveying.

Employees:
2 partners + 5 full time and 3 part time employees/contractors (4 qualified engineers and 4 experienced technicians) + 1 f/t PA

Premises:
Rented offices, 91m2. Rent: £12.9k / year. Rates: £2.7k / year

Reason for sale:
Both partners wish to retire.
A full hand-over and training is offered subject to agreed terms.

Financial overview

Year ending 30th April 2010
Revenue: £525,000
Adjusted NET PROFIT before tax and directors' takings: £175,000 (34%)

A strategic buyer from a related business sector with a business infrastructure already in place could benefit a further £55k to £60k from savings on office costs, advertising, insurance, subscriptions and accountancy, giving a further adjusted EBITDA of £235k

Offers invited for business assets and goodwill

Years established: 24 years

Employees: 8

Trading hours: Mon-Fri business working hours

Relocatable: This business can be relocated.

Property: Leasehold

Lease terms
1 month notice

Location
Well known, easy to access road

Expansion potential
The business is well established and profitable, with a loyal customer base. Over 90% of business is from the existing client base so this is an outstanding opportunity for the new owners, with fresh ideas and investment in marketing, to expand the business to its full potential. This business would be of particular interest to building services companies, architectural practices or other structural and civil engineering companies looking for an ‘add on’ business to acquire new clients with little additional overhead. Such businesses will have the necessary business infrastructure and marketing presence to be able to capitalise on the business performance to date, as well as to reduce existing overheads and increase profitability. The clients are mainly based in London and the South East, therefore the business represents an opportunity for companies based elsewhere in the UK to develop their presence in London. Indeed there is also scope to increase the boundaries of operation. Equally the business would be of interest to individual qualified engineers looking to start their own practice with a ready made client base and business infrastructure.

Support & training
The vendors are happy to provide training and stay on for a suitable hand-over period.

Reasons for selling
Retirement

Financing available
Brokers have established links with banks and other lending institutions to whom we can introduce you.

Related documents

		Confidentiality Agreement

		Business Summary

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