Business Summary:
Ref No: IU186Location: ShropshireAsking Price: £180,000 + Net AssetsBusiness highlights include:Turnover 2021 circa £108,000 p.a.Adjusted Pre Tax Net Profit circa £59,000 p.a. (Before drawings)Net assets circa £41,000Very well establishedExcellent reputation Motivated, trusted staffExcellent customer relationshipsSpecialist application development expertiseRegular client agreementsBusiness Profile:The company has been in business since 2018 and provides end to end software design & development services to clients from a wide variety of commercial sectors for practical use in web environments, desktop and mobile application.The business offers a client the valuable opportunity to detail their requirements in broad terms which is then interpreted by the company in collaboration with a client to get the most accurate definitions of need, and then devise a roadmap that prioritises key features and functionality.This proven methodology solves problems and unlocks the potential in a client’s business that they otherwise may not have been able to achieve. The two owners have been running the since making the decision to combine their expertise in design and software development and operate the business from remote home based offices. Since that time reliable relationships have been built with commercial clients that range from modest marketing agencies to large industrial automation clients.Generally these clients will have identified a business need before engaging with the process, or by collaboration where the company has identified opportunities for them.A typical client project ranges from an initial engagement of £3000 to in excess of £30,000; and as an ever growing business the vendors believe that there is significant growth potential for a new motivated owner. The business is profitable with no bad debts and offers a highly competitive service. All necessary equipment is in place that is required to run a successful operation. A full inventory of the equipment is available to all genuinely interested parties.The business has an open and transparent approach:Guided process from start to finishFair consultancy and development rates Attention to detail that captures issues before they become a problemDiscussions involve easy to understand concepts without technical depth unless this is requiredFriendly approach that enables the client to ask any questionClients:The business maintains a healthy database of clients who are routinely kept up to date with changes in the industry, technology advancements and business opportunities.Technology:The business uses all of the necessary equipment necessary for a business of this type including Laravel (PHP), Vue, C#, React.Business system software is Office 365 & Xero.Customer Service:Customer service is the top priority; the team provide quality of workmanship and an efficient service which is one of their key strengths. Key Strengths:This is a well-run, responsible and reliable company that has a history of continual growth and profits due to the professional and efficient approach to business and the quality of trust that clients show this business and its staff. They are a lean team and can scale up and down in accordance with workload. Management is very light touch with two layers of hierarchy only: the two owners and then developers who work with them. Feedback and regular project progress reports result in successful outcomes.Growth and Expansion:The business is easy to run as the owners have built an infrastructure that ensures a smooth operation and has laid down sound foundations to accommodate future growth that could be achieved with a more motivated approach to management and targeted marketing. The market outlook is growing and is always evolving and means that there will always be the need to manage technical projects in some form or another; and the business is diverse enough and lean enough to pivot to other areas in the future.Advertising & Marketing:The business does not carry out formal advertising and marketing activities but has a comprehensive and attractive website, detailing its services and has profited from strong word of mouth referrals and recommendations. No paid for marketing however the business is listed on several software provider directories and does engage in periodic direct sales approaches to target companies. The vendors also consider that their proprietary marketing model provides the business with a competitive advantage in driving new business.Employees:The 2x vendors are supported by a flexible team of reliable freelance staff but usually maintains a minimum of 3x at any one time.Business Hours:Monday – Friday: 9.30 am – 5:30 pmPremises:The business is managed by the vendor from their home offices.Financial Information: 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 2021 circa £108,000 p.a.Adjusted Pre Tax Net Profit circa £59,000 p.a. (Before drawings)Net assets circa £41,000The Asking Price of £180,000 plus net assets, is for 100% of the issued capital of the company, assuming Net Assets of circa £40,920 on completion (calculated on a zero cash-zero debt basis). The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark circa Net Asset figure of £40,920 at completion.Reason for Sale:New interests.Support and Training:The vendors are happy to stay on at the business for an agreed period to ensure a smooth handover.
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