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For Sale: Supplier of Own Range of Specialised Products to The Plumbing Trade

This business supplies and carries out some in-house manufacture of its own range of specialist products for the plumbing sector, predominantly via major national merchants. Satisfying a niche sector, it has a dominant market share in a number of areas, and has genuine brand recognition.

Founded by the current owners nearly 20 years ago, the company has enjoyed practically uninterrupted growth despite the economic uncertainty since 2008, developing from a small operation run from home to an enterprise with turnover now exceeding £3M and employing around 20 staff from its premises in Yorkshire. There is a management team in place to support the owners. Sales are B2B, with most products aimed at the residential housing market. A relatively newly developed commercial range offers further opportunity as does development of an online B2C platform. Currently all sales are to the UK but opportunities within the EU are being explored.

The business currently generates sales of £3M and above, delivering a sustainable adjusted EBITDA of c £530k. Organic growth forecast for the sector, coupled with opportunities being pursued, means the business is expected to deliver sales of £3.7M and an adjusted EBITDA of £685k by 2018/19.

The Base Guide Price for the business based on a sustainable adjusted EBITDA of £530k is £2.4M for 100% shares, including a debt free cash free Balance Sheet with net assets of around £850k. Over and above this figure, the vendors would expect to share in the anticipated growth for 2-3 years following Completion and are prepared to commit to an extended 2-3 year handover in order to protect that anticipated growth.

This business has grown to the point where the current owners feel it would be better served by new owners with the skills and energy to capitalise on the substantial further opportunities. It is a suitable acquisition for high net worth individuals wishing to retain the business as a stand alone enterprise, a bolt on for a larger business with a complementary product range, or for a private equity team assembling a group. The assets of the business will conservatively allow for £0.5M of debt financing.




If you would like to request further details about this opportunity please complete the form below and indicate your agreement to the Confidentiality Agreement.

CONFIDENTIALITY AGREEMENT

You are requesting Anderson Shaw Corporate Finance Ltd ('Provider'), in conjunction with its client ('Vendor'), to provide you with information about the Company/ies and/or Business/es referred to in the advertisement above. This information will usually comprise the identity of the Company/ies and/or Business/es for sale and may also comprise a Confidential Briefing Document and/or other relevant information about the Company/ies and/or Business/es ('the Information'). Before the Information can be sent to you ('Recipient'), you must indicate below for yourself and/or on behalf of the corporate entity/ies you represent your agreement to abide by the following terms:

Recipient agrees:

  • To keep confidential the Information which, for the avoidance of doubt, includes the identity of the Company/ies and/or business/es for sale.
  • To use the Information only for evaluation purposes.
  • To share the Information only with fellow directors and/or retained professional advisers who will be deemed to have agreed to the terms of this agreement.
  • To return all the Information on demand to the Provider or the Vendor and not to retain any copies.
  • On demand to provide a hard-copy, signed version of this agreement from today’s date.

This Agreement will:

  • Terminate with the written consent of both parties or in any event after 2 years from today's date.
  • Not apply to any of the Information found to be in the public domain.
  • Not apply to any of the Information which is published or otherwise becomes part of the public domain through no fault of the Recipient.
  • Not apply to any of the Information which is already known to the Recipient.

In most cases, if the Vendor approves the release of the Information to you, you will be asked to sign a separate, longer form, Non-Disclosure Agreement which will replace this Agreement.


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