Prestigious Affiliate Marketing Agency
Location : East Midlands/London
Asking Price : OIRO £1,650,000 (inc.net assets)
Turnover : £890,000
Net Profit : Undeclared
Gross Profit : Undeclared
EBITDA : £380,000
Net Asset : £320,000
Premises : Leasehold
Confidentially offered for sale
Turnover for current financial year projected circa £ 890,000 p.a.
Turnover for last financial year circa £830,000 p.a.
Operating Profits/Adjusted EBITDA (pre director drawings) circa £380,000 p.a.
Net Assets circa £320,000
Second Tier/Senior Management in place
Large number of high value national/international clients (retained)
Ongoing growth pattern
Ongoing investment in infrastructure to support future growth
Diverse scope of work
Training and Handover
This young, dynamic yet highly respected and successful company provides its clients with a comprehensive and unique affiliate marketing management service offering that is tailored to client requirements.
Its core service is in the provision of affiliate marketing management on behalf of both retailers and brands. This is a highly specialist offering and there are very few competitors in this market, nationally and internationally. As a result of this and it’s unique consultative approach to business the company has grown quickly to become a highly successful organisation with a large and diverse range of prestigious clients with lucrative budgets and spend.
Customers span a range of industries and include household names across the retail/media sector and beyond. Sectors include travel, home & garden, automotive, fashion, food & drink. The business currently has in excess of 90 highly desirable clients secured on a retained basis and this figure is growing year on year. Clients include both national and international concerns.
Seen as an up-and-coming and bold consultancy, this business has quickly forged a sterling reputation in the retail/brand sector and developed exclusive commercial arrangements with key partners including affiliate networks (inc. tracking software) to deliver impressive results.
The company has invested in technology as it has grown and has excellent back-office systems in place including leading analytical tools and CRM systems for reporting.
This business has adopted a “can-do” approach to its work and can manage every element of the affiliate program from start-up, recruitment, promotion, cost reduction, validation and reporting on a local, national and global scale if needed. Through its work not only does it further enhance its client’s brand reputation, commercial worth and popularity, it also strengthens its own. It generates impressive profitability, there is structure, and staff have the skills and experience to manage all areas of the business on a day to day basis, so much so that the vendor now only operates in the business on a part time strategic basis.
The agency has over 50 years combined experience managing affiliate programs and understands the importance of these programs to their partners and the added value it brings. The business has the in-house experience to accurately identify client requirements and the ability to react quickly to ensure smooth and highly effective campaign completion with tangible results.
Because of this it has built and retained an impressive brand portfolio, many of whom have international standing.
• Experience and expertise in affiliate, global reach, knowledge in all sectors
• Low cost base, small London portal with larger head office in East Midlands
• Experienced team with 2nd tier management in place- NOT owner dependant
• Fixed Fee retainer rather than revenue share pricing model
• Specialist service provider – one of only a few globally
• Over 50 years of combined experience managing affiliate programs
• Strong and impressive financial performance with year on year growth
• Very high profile clients with budgets and ongoing projects
The qualified and experienced team allow for flexibility to cover more demanding requests and still maintain a constant stream of work. The staff in place will mean that transfer of operations to new ownership will be seamless. The senior managers are fully integrated in to the independent running of the business with full control of client day-to-day through to budget planning and new business strategy.The business focus is on serving quality retail clients and brands, which in turn results in enquiries from other highly sought after businesses in the sectors it operates and beyond.
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 for current financial year projected circa £ 890,000 p.a. Turnover for last financial year circa £830,000 p.a. Operating Profits/Adjusted EBITDA (pre director drawings) for last financial year circa £380,000 p.a.
Net Assets circa £320,000.
The business has generated impressive figures since inception and the vendor expects this trend to continue with both new and existing customers committing to new more profitable projects moving forwards, guaranteeing ongoing prosperity and future growth.
The recent expansions with a presence in London and USA will further fuel this.
The Asking Price of OIRO £1,650,000 is for 100% of the issued share capital of the company and includes Net Assets circa £320,000. Should the net asset position be different from this benchmark value at time of sale the price will be adjusted up or down accordingly on a £ for £ basis.
The company has a very strong online presence as you would expect and attends various trade shows, has an ongoing pay per click (PPC) campaign and also has a marketing network company it works closely with to ensure ongoing enquiries and market penetration. This is backed up with a high quality suite of brochures and online content/website, not to mention recommendations and referrals.
The affiliate industry is forecast to grow to £70bn worldwide by 2020, there are over 4,000 advertisers utilising affiliate marketing and tens of thousands not currently exploring affiliate.
This business is currently just scratching the surface, there is huge scope to scale up and there is an immediate opportunity to grow by simply expanding the sales resource within the company. It has just this year opened a small London portal which will give it yet more presence and accessibility. Other areas for growth include:
• International growth (The company has recently launched a US subsidiary that is ripe for development)
• Cross-selling with other products
• Influencer marketing
With such a strong base to grow from, ongoing retainer revenues, and a history of successful work, the business is primed for future growth and expansion via marketing its services to a wider audience.
The business operates from ideal leasehold offices situated on a business park in the city. Rent is very reasonable. Lease is circa 3 years with 2 year break clause.
More recently the business has also set up a small office in London on a flexible lease agreement.
The vendor has put in place an excellent team of some 16 full time staff including strong senior management who run the business on a day to day basis. This enables the owner to operate part time and this is purely on a strategic level.
Key staff include a Business Development Manager, Client Services Manager, Head of Strategy and a Finance Manager not to mention numerous Account Managers and Support Staff.
The vendor is open to agreeing a handover period for the successful transition of the business operations to new ownership. This should be a relatively simple process as the business has key staff/senior management in place who run all facets of the business on a day to day basis.
As already mentioned the vendor only tends to operate par time and on a strategic level.
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