Business Overview
This memorandum outlines the opportunity to acquire a rental management company based in Manchester. The company has experienced significant growth over the past few years, already surpassing last year’s turnover and expecting to double it by year-end with an anticipated net profit of approximately £80,000.
Key Highlights
- Location: Manchester, UK
- Industry: Rental Management
- Staff: 1 full-time employee (PA)
- Tenants: 125
- Valuation: £71,340 to £107,010 (subject to further review)
Business Operations
The company specializes in signing 3-5 leases with landlords and then subletting the properties. It has established strong connections, often receiving more property offers than it can accept. The business typically breaks even within 2-3 months and generates a monthly profit of £500-£700 per property, with initial costs of £2,500 per property.
Financial Performance
The company has shown impressive financial growth:
- Turnover Last Year: £425,374.04
- Turnover Year Prior: £111,416.61
- Turnover 2 Years Prior: £36,676.70
- Net Profit Last Year: £43,970.38
- Net Profit Year Prior: £4,030.98
- Net Profit 2 Years Prior: £433.73
Acquisition Opportunity
This business presents an excellent opportunity for an investor or company looking to enter or expand within the rental management market. The current director is seeking to exit to focus on other business interests and family commitments, making this an ideal time for acquisition.
Transition and Handover
The business is well-structured to run smoothly even in the absence of the director for a month, thanks to the use of Podio CRM for managing tasks, bookkeeping, and accounts. The director’s involvement includes property management, tenant sourcing, and maintaining relationships with partners.
Assets
- £33,000 in deposits
- £25,000 in furnishings
- Websites and social media handles
- Established client base and strong industry connections
Liabilities
- Personal loan from a family member: £5,000
Conclusion
This is a unique opportunity to acquire a growing rental management business with a strong market presence and significant growth potential. With a solid operational structure and a robust client base, the company is well-positioned for continued success under new ownership.
For further information and to express interest, please contact [email protected] at your earliest convenience.
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