Diversification and related integration within the property services sector

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The concept of offering a larger range of products and services to your existing customers or selling your existing products and services to a new portfolio of customers, would be two of the main reasons to potentially look at an acquisition.

• Do you have an existing operation within the building services sector?

• Are you looking to grow and create additional revenue streams?

• Are looking to spread the risk within different products/services

The easiest way to grow a business is to do more of the same to the same market place, you know the products and services, you know the marketplace,you know the margins – you know how it all works.

To give your company or group of companies greater protection there should be diversification at some stage, dependant on your size

We have been active within the building services sector for some time now and have a number of opportunities that may be of interest.

Whether you looking to reduce the risk within your current product / service offering or are looking for alternative markets to give your business a better spread, a greater starting point is the companies that are doing the initial surveys on the buildings.

One company we have within our portfolio performs equally as well in a slower economic client as well as a buoyant one.

It has been established over 50 years and has been dealing with its top 40 customers for an average of over 10 years. 80% of its customer base’s turnover is in excess of £25m and many are blue chips.

They work on approx. 400 cases per annum, giving visibility to its parent company of potential other workflow at a very early stage.

They make profits of over £700,000 on a sales turnover of £5.5m.

The client relationships are spread throughout the team.

There is a rolling sales ledger of over £1m, as well as £250,000 working capital included in the sale.

Another business we have for sale are on numerous frameworks for contracts and tenders:

They make profits of over £500,000 on a turnover of £4.5m

As a consequence they get visibility of sales up to 3 years in advance and have a rolling order book of £3m, that any purchaser would immediately get the benefit of.

In both cases you are not just buying the business and ‘what it says on the tin’, for the right buyer you have the opportunity of exponential growth with the right diversification and integration.

For both businesses we are inviting offers in excess of £2m

If you would like to speak to us about your own exit strategy, are looking to make an acquisition, explore finance options or are interested in either of the acquisition opportunities mentioned above, please email us at: info@thebusinessboard.co.uk or call our office number on 0845 337 3327.

We look forward to speaking with you.

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