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 increased by 9% from April 07-08 to April 08-09 and for the four months from May to August 2009 is up 14% compared to the same period in 2008.


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.

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: £15.1k / year. Rates: £2.8k / 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 2009
Revenue: £525,767
Adjusted NET PROFIT before tax: £110,520 (21%)

Forecast for year to 30th April 2010:
Revenue: £600,000
Adjusted NET PROFIT before tax: £145,000 (24%)

Asking price: £395,000 + NAV

Property information

Property:

Leasehold

Leasehold rent:

£15,100 per annum

Location:

Well known, easy to access road

Other information

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.

Support & training:

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

Reasons for selling:

Retirement

Trading hours:

Mon-Fri business working hours

Financing available:

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

Related documents:

• 
• Business Summary

• 
• Confidentiality Agreement