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Key Facts

[Ref: AD023]

Business For Sale : Distributor of Professional Audio & D J Equipment
Location : North London, North (N), UK
Leasehold | Asking Price: "£540,000"

Contact: Turner Butler

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Asking price includes

Turnover circa £2 Million per annum
Gross Profit circa £300,000
Average spend £1,600 per customer
Limited direct competition in the industry
Direct Dealership with major brands
Stock and agreements with full range of manufactures
Growing export business to Europe
Streamlined operation from order to delivery
One stop shop status for all Professional Audio equipment
Comprehensive website with on-line ordering facility
Handover and Consultancy
Goodwill

Business profile

Following in excess of 20 years in trading and retailing high-end Audio Visual equipment, the vendor established this stable and growing business in 2005 to focus on the Professional Audio and D.J equipment sector.

From the outset the business has focused on its reputation for delivering all types of equipment, including hard to find and discontinued items. Alongside the major OEM electrical companies, and the high-end niche manufactures, the business stocks from a wide range of suppliers across the industry. As such they have developed a true one-stop shop for the AV installer, Professional D.J., and Nightclub / bar looking to source and implement the best equipment in the market.

The business sells mostly through wholesalers and distributors, with some direct retail orders. Approximately 50% of orders are for the U.K. market, with 50% destined for Europe. They have agreements in place with some major continental distributors, including Germany’s largest retailer.

The business has won a number of exclusive sub-distribution agreements with niche high-end manufactures for U.K. and Eire. Also with the amount of trade the business is capable of, they are continually offered “Direct Dealership” opportunities with major brands such as Sony, Panasonic and Pioneer. Should the retail operation be expanded, this can easily be capitalized on.

The business is currently located in a large and flexible building in North London, allowing for storage and warehousing on-site, with office space and a small retail area. The business can be re-located, the vendor is open to leasing the premises at market value to a new owner, or selling the freehold of the building, which includes a flat conversion.

Customer Service

High quality service, with flexibility, honesty, reliability and good value, every order request is important and customers always come first. The result is self evident in the business’s sustained level of repeat business. The business prides itself on attention to detail for orders of all sizes, from major shipments to the continent, to one-off orders in private individuals. With such a wide range of products available, all equipment needed for a project can be purchased from one site, with one shipment cost. This appeals to the small Audio Visual fitter, Professional D.J. and private individual.

Key Strengths

The business is now established as one of the market leaders in the industry, and the only distributor in the market with such a range available. With the knowledge and ability to source hard to find items, the company receives regular requests from other distributors and competitive partners to source equipment. The company has strong relations with wholesalers and distributors through-out the U.K. and Europe. As one of the largest importer / exporter of AV equipment they are a preferred supplier for household name electrical and electronic manufactures.

From such a stable footing, the business has consistent sales turnover from which to expand in a number of directions.

Growth and Expansion

The business is primed for expansion. The current building can accommodate a retail operation, which the vendor has declined to expand. Also with the preferred status of key manufactures, there is the opportunity to open a direct dealership for the likes of Sony, Panasonic or Pioneer. With specific further marketing to drive private individuals to the website, the internet retailing operation could be greatly expanded.

The trading name is open to expand the range of equipment offered away from the core pro-sound sector. The vendor has also indicated that there is massive potential for expansion further into Europe, with a particular focus on the fast growing Eastern European marketplace.

Premises

The business operates from Freehold premises owned by the vendor . A lease can be discussed if required or alternatively the vendor owns the freehold of the premises, which could be made available under separate negotiation. The business could also be relocated.

Employees

The business employs the vendor as Managing Director of the company, who is currently responsible for all export sales. In support are thee full-time employees, 1 U.K. Sales Manager, 1 Warehouse Manager and 1 Accounts Supervisor. There is also a part-time office administration assistant.

Financial profile

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover circa £2,000,000 per annum
Gross Profit Guideline £300,000.

Support and Training

The vendors will be delighted to arrange a suitable handover period to new ownership and is open to discussions regarding a longer-term contracted consultancy arrangement.

Reason for Sale

After many years in the trade building a successful business, the vendor is looking to hand-over the company on an upward trajectory to someone who can take things to the next level. He is looking to enjoy a great work / life balance

 
 

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