This is a unique opportunity to buy a business with a 10 year trading history, a "guaranteed" level of repeat sales and the chance to significantly grow the volume. The owner wants to sell the intellectual property, the customers and the volume. This offers a fantastic opportunity to buy the profitable volume and move this business fully supported by the existing owner to the buyers existing facilities. This business is a significant supplier of a complete range of machines and attachments for the maintenance and renewal of railway lines. The machines are designed and built for specific requirements and supplied primarily to the equipment hire suppliers in the industry and the new installation contractors. There are no direct competitors for most of the equipment and the current level of volume is achieved without any sales or marketing effort. The owner was achieving sales of 1m with a workforce of 15 but following a period of illness decided to focus on development engineering and slimmed the workforce down to 5. The existing volume has continued with no sales and marketing input. The owner wishes to focus his time and resources on development engineering and is prepared to consider a licensing agreement for new products he develops that require volume manufacture. The extensive product range includes about 40% of the business that has to be replaced every 7 years due to the rail industry legislation; it is likely that more of the volume will be covered by this legislation in the future. The company has significant growth opportunities. The volumes given up in earlier years are achievable with a reintroduced sales and marketing effort there are no export business despite regular enquiries and a buyer with more integrated manufacturing capacity should be able to reduce the cost of sales and improve the profitability.

Posted Oct 14, 2011

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