Sector: PR, Media & Marketing
Funding Available: Yes
Note: This business has been reviewed by our financial team in terms of viability and funding potential. To learn more about the opportunity to acquire this business with (if required) funding managed by Nudge, please schedule a call with Jamie Sylvian.
100% ownership of a UK based PR, Media & Marketing Company.
Jamie Sylvian / London
Share this by email
- The Company is a well-established and highly reputable marketing agency specialising in personal direct communication services, helping clients who manufacture laboratory instruments for the life science industry to develop and manage a sales pipeline. This process involves extensive data profiling and the acquisition of market intelligence.
- The Company is the leading organisation within this highly niche sector, providing its services for eight of the top twenty market-leading organisations within the sector; which totals approximately $50bn in worldwide revenue, including the top two companies.
- In the analytical instruments sector, the company has developed a methodology that enables any client to run a programme of direct customer contact in any part of the world, in almost any language, promoting any technology, regardless of the client’s own infrastructure or experience, and guaranteeing a successful outcome.
- The Company employs approximately 50 members of staff, this is a mix of temporary and permanent contracts.
Products & Services
- Utilising a well educated and multi-lingual team and a highly experienced management team, the Company provides a specialist service in personal direct communication, delivering high quality calls on behalf of its clients to identify relevant personnel and generate sales leads.
- The Company has built and maintained a proprietary list of worldwide private and academic organisations, also establishing a comprehensive understanding of relevant techniques and equipment used within the life and material sciences sector, enabling the effective and professional delivery of its offering.
- The Company’s leading service accounts for over 40% of it’s turnover. This service is provided on a contractual, ongoing basis.
- Operating with an international blue chip base in the life sciences industry, the Company has established a strong presence within its key operational markets, which are as follows:
- Analytical instruments used in Biological and Life Science Laboratories
- Chemical analysis, laboratory and testing instruments used in Industrial R&D
- The Company has worked with over 40 US and European multi-national corporations. Presently working with 20 clients on a regular basis, approx 75% of the Company’s turnover is invoiced to non-UK based clients.
Financial & Funding Overview
Overview of the finances required to successfully take over the ownership of this business.
- In 2016 the business has a turnover of £1.78m
- The EBITDA 2016 is £481k
- Net Income 2014 £126k
- Net Income 2015 £206k
- Net Income 2016 £319k
- Net Income 2017 (forecast) £443k
- Potential cash flow funding of up to £740k
- Potential receivables funding of £267k
Year on year the company has consistently increased sales revenue whilst increasing gross profit margins and maintaining a steady 25%+ operating profit margin. With Forecasts of 35% increase in sales revenue in 2017 the company continues its growth pattern and continues to have a strong cash flow making this business favourable for acquisition by Nudge.
Asking Price: Offers
Nudge Valuation Range: £1.06m – £1.66m
Legal Status: UK Limited Company
Share Percentage for Sale: 100%
Current Location: Northern England
2nd Tier Management:Yes
Based on a purchase price of £1.45m
Due at closing = 25%-50% £363k – £725K
Deferred payments = £725k – £1.08m over 4 years
Total funding required = £529k – £892k
Repayment over 3 years
Funding against receivables £267k. As at 6th June 17 trade receivables £372k
Funding against cash-flow/profit £262k(based on 25% at closing) £625k (based on 50% at closing).
Note: The red boxed area on the chart relates to the most likely price range acceptable based on our research and calculations