Summary

This grand opportunity to acquire a well run and immaculately structured meat wholesale business which is making profits, comes with a property fitted with cold rooms and three retail outlets in the city is now available to astute meat business operators and investors.

1. History Background

Fully describe the business's activities?

The business stores carcass beef which has been slaughtered at the seller's own abbatoir and other third party abbatoirs. The cold rooms which are located on the business premises have the ability to store 60 head at a time. The beef is graded and sorted into various meat grades or "cuts" and packed. The orientation of this business is clearly wholesale meat sales although walk in customers can also access and buy from the business and no limits are imposed on minimum quantities. Large customers of the business include three retail outlets which are being leased by the business and form part of the sale. The business has a growing number of mining companies and large canteens as part of its clientelle. The company also sell sells pork, chicken and lamb from its premises.

How long has the business been established?

3 years

How long has the owner had the business?

3 years

What steps are in place to solve 'load shedding' problems?

The business has a 25 Kva generator in place in case of power cuts.

What is the average KW usage?

25 Kva

2. Present Market

How does the business operate on a daily basis?

The owners are very involved in the business particularly on procurement and sourcing of carcass beef and ensuring that there are adequate stocks of beef in the business to meet demand. The owners maintain close contact with feedlots and auctions of cattle in the region to ensure they secure the best beef out there. The meat arrives at the business premises as hind or forequarters or half carcases. This is then cut and sorted and packed ready for the market. There is front office from where customers can walk in and make purchases. The business also has delivery trucks who deliver to the three meat retail outlets owned by the business as well as well to large customers who place orders.

How are the clients attracted to the business?

A large portion of the customers have become loyal through word of mouth and from the limited advertising carried out by the business.

What Advertising/Marketing is carried out?

Print media, bill boards and road signs

Does the business have any contract work?

Yes. The business has fixed supply contracts with a mine, a national retail chain and a corporate canteen.

What competition exists?

There are many independent meat wholesalers in the city.

What are the seasonal trends?

The festive period in December creates and the Zimbabwe International Trade Fair period creates demand peaks.

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

Yes

Are there up-to-date Management Accounts available?

There are no separate management accounts for this business as it was part of a larger family owned business.

What Balance Sheet and Income Statements are available?

The business is part of a larger family businesses but the properties and assets for the meat wholesale business are clearly identifiable.

What percentage of of the business is cash/credit?

30% cash and 70% credit

What is the age analysis of the debtors book?

The bulk of the debtors is in 30 days.

How could the profitability of the business be improved?

The profitability can be improved through increased throughput and aggressive marketing to businesses that have canteens, mines and retail chains.

Is Seller finance available and for what amount?

40%

What is the payback period?

50 months

What is the ROI?

4. Staffing

What is the total staff complement?

20

Give a breakdown of staff/functions/length of service?

Available on request

Do any receive special perks or incentives?

2 members of staff are on incentive

Are they on contract?

Yes

Do any have management potential?

Yes.

How involved is the Owner in running the business?

Very involved and fully employed in the business.

5. Premises

When does the current lease end?

The premises form part of the sale

Is there an option of renewal & what period?

Not applicable

What is the annual escalation %?

Not applicable

What are the trading hours?

Monday 7.30am to 5pm Saturday where necessary

What is the square meterage of the business?

400 square metres

Is a copy of the lease available?

Not applicable

Do you require a licence?

Yes. Shop licence for a butchery, the current one is transferrable.

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

No

What is their overall condition?

Very good as the plant and equipment was purchased brand new 3 years ago

Do any require repairing?

No

How have they been valued. ?

Insurance valuation

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

(1) The business is well run and has found a niche in contract beef supplies. (2) The equipment of the business is still new and efficient which contributes to reliability of supply for customers. (3) The owners have a lot of experience in sourcing cattle and are willing to enter into contracts with the new owner of the business.

Weaknesses?

(1) Theft of beef (2) Marketing could be more aggressive

Opportunities?

(1) To increase sales volumes through supply contracts to retail chains, mines and canteens.

Threats?

(1) Meat imports

8. Reason For Sale

What is the reason for the sale?

The owners wish to retire some personal debts

9. Conclusion

Why is this a good business?

The business is profitable and has great potential

What is the price plus stock and the net profit?

(Price) US$1,000,000.00 (Profit) US$15,000.00