Summary

Neat Butchery situated in established area on a busy road going for a song.

1. History Background

Fully describe the business's activities?

Retail butchery in suburban complex.

How long has the business been established?

For many years, more than 15 at least

How long has the owner had the business?

8 years

2. Present Market

How does the business operate on a daily basis?

Sell meat on retail basis to walk in customers.

How are the clients attracted to the business?

Mainly old customers and walk in trade.

What Advertising/Marketing is carried out?

A Frames on sidewalk.

Does the business have any contract work?

No

What competition exists?

No competition in direct vicinity.

What are the seasonal trends?

Busy during Winter months with preparation of Game meat.

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

Yes

Are there up-to-date Management Accounts available?

Currently with bookkeeper

What Balance Sheet and Income Statements are available?

Currently with bookkeeper

What percentage of the business is cash/credit?

Mostly cash

What is the age analysis of the debtors book?

N/A

How could the profitability of the business be improved?

Better sales turnover and more selective purchasing from alternative suppliers. Increasing prices.

Is Seller finance available and for what amount?

No

What is the payback period?

280 months. Business needs to be rebuilt.

What is the ROI?

4%

4. Staffing

What is the total staff complement?

Owners wife plus 1 assistant

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

N/A

Do any receive special perks or incentives?

N/A

Are they on contract?

N/A

Do any have management potential?

N/a

How involved is the Owner in running the business?

Owners wife 100%

5. Premises

When does the current lease end?

June 2012

Is there an option of renewal & what period?

Yes

What is the annual escalation %?

7%

What are the trading hours?

Weekdays and Saturdays 8 - 6

What is the square meters of the business?

230 sqm

Is a copy of the lease available?

Yes

Do you require a licence?

Health Dept compliance to work with Game

What lease deposit and/or other surety is required?

Normal

6. Assets

Is a full asset list on file?

Yes, owner preparing

Are any items not included in the sale?

No

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued ?

Fair value

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

N/A

Will Seller settle or Buyer to take over?

N/A

Are copies of agreements available?

N/A

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

This business is well positioned to utilize the going-home traffic in the afternoon. It is known in the area and the brand can be re-established fairly easily. The shop is large enough to offer more than just butchery services.

Weaknesses?

The owners has lost interest and is just carrying on, covering expenses. The shop is currently not well stocked, and marketing, advertising and promotions needs to be put in place.

Opportunities?

The shop has kept the current owner going for 8 years, and with new interest and a fresh approach could be taken to new heights.

Threats?

No known threats except normal economic trends.

8. Reason For Sale

What is the reason for the sale?

Owner has lost interest and wants to move on to new ventures.

9. Conclusion

Why is this a good business?

Currently the business is at a low as a result of low owner interest and initiative, but it has the potential to turn a good profit as it is the only butchery in the immediate vicinity, it is situated next to a busy main road with good visibility and good advertising opportunities.

What is the price plus stock and the net profit?

R 225,000.00 Lock stock and barrel.