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Specialist Supplier of Medical Equipment Cleaning Chemicals
Strong NHS relationships

Ref. CQ198

Location : Hertfordshire

Asking Price : £350,000

Turnover : £219,000

Net Profit : Undeclared

Gross Profit : £94,000

EBITDA : £90,000

Net Asset : £31,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Premises: Leasehold

Asking price: £350,000 inc. Net Assets

Business highlights include:

Turnover circa £219,000 per annum
Adjusted Net Profit circa £90,000 per annum
Gross Profit circa £94,000 per annum
Net Assets circa £31,000

Proprietary supplier relationships
Comprehensive website
ISO 9001 accreditation
Skilled & motivated personnel
Two modern & comprehensive factory units
Significant Goodwill

Business Profile

Set up more than 33 years ago this very well established and reputable business provides a crucial and essential range of niche chemicals products to hospitals and surgical units in the healthcare sector, with direct relationships in the UK and some international customers provided to through trusted resellers.

The company specialises in the formulation, and supply of specialist high quality chemical formulations for the washing and disinfection of re-usable surgical instrumentation which includes flexible fibreoptic endoscopes and Transoesophageal Echocardiography probes (TOE), laboratory glassware and peripherals. The company has the facility to supply both large and small batches.

The business has been developed over time and is very well known in the sector by manufacturers, agents, resellers and surgical healthcare providers throughout the UK.

The company’s range of high quality chemicals are absolutely compatible for use in the latest washer disinfectors and AER equipment installed in the Sterile Services environment; and also has a range of chemical formulations that can be used in Ultrasonic cleaning systems as well as the manual & soak cleaning of heavily soiled surgical instrumentation.

The business has designed and developed many products that are the results of solving complex technical problems for its customers and retains significant strategic assets such as formulations manufacturing arrangements and distribution of the chemicals.

From first contact to completion the onus is geared towards complete customer satisfaction.
The business is committed to ensuring manufacture is to the required standards of excellence, (no cleaning capability means no operation at hospitals) as you would expect from a company supplying to customers with such health critical requirements.

The company was founded in 1981, originally to service the National Health Service in the UK and since when European legislation relating to washer/disinfectors, finds the company supplying its chemicals products to many countries, including – USA, Europe and the Middle East.

With so many years of experience in the sector, the company is able to offer its considerable expertise to customers and can provide essential input in overcoming problems with the quality cleaning of instrumentation going through the washing process. Examples include water quality analysis and the evaluation of soft metals/alloys used in the manufacture of instruments.

The company also has the protocols in place to complete residual chemical testing on surgical instruments on behalf of customers.

Customer Service:

This is a key area of strength for this business. The company is a quality driven organisation and has never failed to successfully meet a customer’s requirements.

The company has a sales and administration management team taking care of day to day customer relations; this together with speed of response and consistent quality of product ensures significant levels of repeat business. New business creation is achieved through resellers, client testimonials and word of mouth within the market also accounts for new business.

Key Strengths:

The company is financially strong with a very strong relationship with partners in formulation and operates from its Hertfordshire based office premises. It is growing year on year in terms of customers and financial performance and it consistently generates profits.

The business is a highly knowledgeable operation that can undertake a large variety of orders due to the impressive abilities of the people it has in place. Both large and small quantities can be produced and internal skills & the company’s reputation is very strong.

The business is established and profitable with a broad client base including some of the most famous hospitals in the UK and has regular customers and is not reliant on a small number of high turnover clients. The business retains a high level of historical clients.

The company has earned an outstanding reputation for its honesty, integrity, technical ability, service and reliability.

The company benefits from an ability to compete on price, technical advantage, proprietary formulations and extremely well embedded customer relationships that combine to ensure excellent, high added value profit margins.

Key Opportunities:

This is an outstanding opportunity to build on the existing products, services and customer base of this leading company. With a strong demand and impressive profitability, combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level.

The business maintains a base of satisfied customers, who appreciate the company s superior products and skill sets, attention to detail, value for money and service.

There are many excellent avenues for growth, especially within the current operations capacity and a drive to increase UK and European sales along with developing international, in-country reseller relationships and effort in gaining validations for other equipment washers than those that have kept the business busy over the years.

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 circa £219,000 per annum
Adjusted Net Profit circa £90,000 per annum
Gross Profit circa £94,000 per annum
Net Assets circa £31,000

The Asking Price of £350,000 is for the assets and goodwill of the business (incl SAV).

There will be a £ for £ adjustment to the asking price to reflect any rise or fall in the net asset position as at completion.

The business has a clean bill of health with no loans or HP outstanding.

Asking Price:

The asking price of £350,000 including net assets is for 100% of the ownership of the business on completion (calculated on a zero cash-zero debt basis).

Advertising and Marketing:

The business could benefit from a more strategic internal medium/long term sales and marketing planning. It has a basic yet informative website but does very little in the way of proactive marketing. In saying that the website ranks highly on Google for explicit searches for the specialised products that the company manufactures.

Growth and Expansion:

The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale.

It is an ideal add-on business to anyone currently selling into the central sterile supply and the endoscopy cleaning departments. There are strong synergies, not least incremental profits with little extra investment cost and immediate acceptance from customers.

It also has the ability to enter new markets should a new owner so wish as it has a sterling reputation in place. It is already seeing growth in terms of new enquiries as its proprietary designs and products consistently find new customers within the NHS in the UK and around the world in health markets. Current market penetration in the UK is London and the Eastern Counties with the rest of the NHS UK market as potential for growth.

Perhaps the single greatest limiting factor to growth is that the current owner has managed this business on an almost part-time basis since 2002 and it is believed that a new owner with a pro-active approach could achieve a fourfold increase in turnover along with retained margin.

The company has relationships with UK and overseas agents, with a little proactive effort this could be increased and it is believed would yield excellent results.

Premises:

The business operates from a small office, ideally located in a busy Hertfordshire Town which is rented on a 3 month rolling arrangement.

The premise offer excellent value for money and are located in a fabulous semi-rural location, very close and in easy access of A roads and nearby M25. We are advised rent, rates and water are circa £13,000 p.a. per annum.

Business Hours:

The business currently operates Monday to Friday and usual office hours of 9:00am to 6:00pm.

Employees:

The vendor works in the business on a part-time basis and has been coaching the management team with the result that this team has taken more and more of these duties on as time has progressed.

As well as the vendor, the business also employs 3x Sales and Admin staff.

Support and Training:

The current owners would be happy to provide full training and support at handover to ensure a seamless transistion of ownership. One/both may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.

Reason for Sale:

The owner is planning their exit strategy due to retirement.

Looking for finance ?

If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at finance@turnerbutler.co.uk

Turner Butler Disclosure Statement

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk