Anderson Shaw Corporate Finance Ltd exclusively offers for sale a well operated and very profitable family owned waste handling business located in the East Midlands. The vendor, who no longer plays an active role in the business, would like to sell in order to fund other projects.
The business provides industrial cleaning and waste collection services to the commercial and industrial sectors, supporting customers both regionally and on occasions nationally. The business has grown organically to a current fleet size of 13 vehicles and invoiced nearly 280 clients in the last financial year, with the top 1 and top 5 clients accounting for 22% and 63% of turnover respectively.
The business currently employs 11 staff, with management continuity provided by the current Managing Director who would like to stay with the business. The business operates from a garage on a leased half acre site with convenient transport links. We understand that the landlord would be willing to discuss sale of the freehold.
Sales for 2013/14 exceeded £X.XM, a 33% increase on the prior year and the result of growing the industrial cleaning side of the business, investment in a new tanker and exploiting an exploratory fracking opportunity. The adjusted EBITDA for the same period was £xxxk. Gross margins have increased year over year since 2010/11 and now comfortably exceed 50%. The business is forecast to continue growing in 2014 /15, with sales of £X.XM delivering an adjusted EBITDA of £xxxk. The balance sheet as at July 2014 had debt free, cash free Net Assets of just over £xxxk.
The Guide Price sought by the Vendor for 100% of the shares is £X.XM. The business will be sold on a debt free, cash free basis with a net asset value at completion expected to be around £xxxk. The business will appeal particularly to trade buyers in the same sector looking for geographic expansion or complementary businesses looking to move into the industrial cleaning / waste collection sectors. Fracking potentially offers a very real opportunity for a quantum leap in the scale of the business.