This business has established a differentiated, leading market position and reputation carrying out groundworks and installation activities in an important and growing sector which is a focus for government and is likely to continue to grow in to the foreseeable future. The owner of the business, having overseen its development over c 20 years, wishes to sell in order to achieve a change of lifestyle with his young family.
The Company has established strong relationships with key suppliers who recognise it as a key part of their delivery chain. Projects, on average, are worth c £xxk but can be worth £xxxk or more. Projects are carried out all over the UK.
There is a total workforce of around 40 with an established management and supervisory structure, systems and procedures. The Company also has a comprehensive range of vehicles and equipment enabling it to carry out work to the highest standards. The business operates from a modern industrial estate located in the Midlands.
In the last financial year total sales were £x.xM with an Adjusted EBITDA of c £xxxk. The current year is expected to show a slight reduction in sales and EBITDA as a result of changes which the owner has been making in the business to make it ready for the next phase of growth. FY 2018 onwards is expected to see the business growing towards sales of £xM generating an Adjusted EBITDA of c £xxxk by 2019. Net Asset Value on a debt free, cash free basis is expected to be around £xxxk.
There are good opportunities for growth for the Company both by increasing the workforce and by adding additional services/expertise.
The Guide Price for the shares of the Group is £x,xxx,xxx on a debt free, cash free basis. This business will appeal to existing groundwork or building contractors seeking to develop a presence in this important sector or to other acquirers who wish to operate the Company on a stand-alone basis. The owner will assist the acquirer with handover for up to 6 months on a reducing days per week basis on terms to be agreed.