Summary

This business mines (in some cases), processes and exports stone and wood to Europe, Asia and America. It's profit is thus linked inextricably to the exchange rate. The business, which is 24 years old, is run by a manager. A 10ha property is included in the price. Price: N$4.4 million, net profit per month: N$70 000 - N$300 000.

1. History Background

Fully describe the business's activities

This business mines, processes and packages a variety of stone products that are exported and used for decorative purposes. The business has three mining concessions. Some stones are bought in bulk locally and merely processed. The business also treats and packages decorative wood, as well as dune sand. All clients are overseas, so the business is very experienced in getting all the export documentation ready.

How long has the business been established

This business was started by the owner in 1986.

2. Present Market

How does the business operate on a daily basis

Most of the activity in the business revolved around processing and packaging the products. Stones have to be crushed to various sizes and tumbled to remove sharp edges. Wood has to be treated and cleaned, and all goods have to be packaged according to client orders. If necessary, the mines are visited for about a week at a time and raw material for about six months is mined. Other products are sourced from farmers or individuals who collect them.

How are the clients attracted to the business

The business has had many clients for the last 24 years. The products and reputation are good, so the business just keeps supplying to more or less the same clients.

What Advertising/Marketing is carried out

The business has a website and pamphlets. Other then that it is direct contact with the customers.

Does the business have any contract work

The business has no contract work.

What competition exists

The business has no competition locally and most products are unique, but there are firms in the market it operates that offer alternatives.

3. Financial

Is the business VAT Registered

The business is VAT registered.

What Balance Sheet and Income Statements are available

Full Financial Statements up to February 2009 are available.

What percentage of of the business is cash/credit

Some sales are cash, but long-standing clients have 30 day accounts.

Is Seller finance available and for what amount

Unfortunately no seller finance is available.

What is the payback period

84 months

What is the ROI

15%

4. Staffing

What is the total staff complement

The business has 25 employees, all of whom are trained in their jobs.

Do any have management potential

There is a manager in the business who takes care of all day to day operations. The only thing he is not in charge of is marketing and administration.

How involved is the Owner in running the business

The owner resides in Australia, so he is not involved on a day to day basis at all. He does take care of dealing with the customers and marketing the business.

Are they on contract

Nine staff are employed full-time, and the rest are casuals.

5. Premises

When does the current lease end

The property is owned by the CC under which the business operates. It's worth is estimated at N$5 million and included in the price of the business.

What are the trading hours

The business operates during normal working hours.

What is the square meterage of the business

The business operates from a 10ha sized plot. A variety of sheds are used, with about 2000sqm under roof. The property also has a house with four bedrooms and two flats, as well as two labourers cottages.

6. Assets

Is a full asset list on file

The full asset list is on file.

Are any items not included in the sale

All items are included in the sale.

What is their overall condition

Most assets are not new, but are in good working condition. Some of the vehicles have recently been acquired.

Which assets are on lease/HP and with whom

All assets are fully paid for.

Are they presently insured

All assets are presently insured.

7. S.W.O.T. Analysis

Strengths

Some products are mined, processed and sold to the customer through this business. Products are unique and a broad international client base has been built up. Barriers to entry are thus very high. The business is a hedge to the dollar/rand exchange rate: If the rand weakens, this business makes higher profits.

Weaknesses

A strong exchange rate hurts the bottom line, and the business is linked to the economies of Europe and America.

Opportunities

Build and expand the brand, add product lines.

Threats

None perceived,

8. Reason For Sale

What is the reason for the sale

It is not very practical to own a business in Namibia when living in Australia. The seller would like to become the sole agent in Australia and New Zealand.

9. Conclusion

Why is this a good business

The business is manager run, has great prospects going forward and is very profitable.

What is the price plus stock and the net profit

The price of the business is N$4.4 million including stock and the property which is worth about N$4 million. The profit is about N$75 000 per month, but this can increase drastically when the Rand falls.