Summary

Landscape supply business for sale. The business specialises in pots, water features and pebbles. The business also has a nursery and this side of the business can easily be expanded. included in the sale is a separate pot manufacturers' moulds. Thi business has an established customer base which will increase the profitability of the business. This is an easy to run business, well located and has a great return on investment

1. History Background

Fully describe the business's activities?

Landscape supply business for sale. The business specialises in pots, water features and pebbles. The business also has a nursery and this side of the business can easily be expanded. Also included in the sale is a pot manufacturers moulds. This business has a separate customer base which will increase the profitability of the business. This is an easy to run business, well located and has a great return on investment

How long has the business been established?

+- 2 Years

How long has the owner had the business?

Owner started the business

2. Present Market

How does the business operate on a daily basis?

Business is completely manager run

How are the clients attracted to the business?

Passing trade

What Advertising/Marketing is carried out?

None

Does the business have any contract work?

No

What competition exists?

There are 2 large nurseries in close proximity. There prices are higher than this business so customers buy plants from the nurseries and pots from this business. In a sense the business piggy backs on the larger nurseries in the area

What are the seasonal trends?

Winter months are slower than summer months

3. Financial

Is the business VAT Registered?

No

What VAT documentation is on file?

N/a

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

Only management accounts

What percentage of the business is cash/credit?

Mostly speed point transactions

What is the age analysis of the debtors book?

N/a

How could the profitability of the business be improved?

Marketing, attracting lanscapers to the business by offering a 1 stop lanscaping for all their requirements

Is Seller finance available and for what amount?

No

What is the payback period?

18 Months

What is the ROI?

68%

4. Staffing

What is the total staff complement?

4 Staff members

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

1 Manager, 1 sales person, 1 general worker, 1 casual when needed

Do any receive special perks or incentives?

The manager does sideline landscaping work on the condition that she buys her goods from the business

Are they on contract?

No

Do any have management potential?

Manager already in place

How involved is the Owner in running the business?

Not at all

5. Premises

When does the current lease end?

This is an ongoing lease.

Is there an option of renewal & what period?

Yes

What is the annual escalation %?

What are the trading hours?

Mon - Fri 8 - 4, Sat, Sun 9 - 3

What is the square meters of the business?

1ha

Is a copy of the lease available?

Yes

Do you require a licence?

No

What lease deposit and/or other surety is required?

1 Month rental deposit

6. Assets

Is a full asset list on file?

No

Are any items not included in the sale?

No

What is their overall condition?

Very good

Do any require repairing?

No

How have they been valued ?

Market 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?

7. S.W.O.T. Analysis

Strengths?

This is a very attractive business. It is well located and has great potential

Weaknesses?

Lack of owner involvement

Opportunities?

The business needs an owner to be involved and marketing. This will increase sales

Threats?

None perceived

8. Reason For Sale

What is the reason for the sale?

The business was started by 4 friends. They are all professional people and does not have the time to spend with the business

9. Conclusion

Why is this a good business?

Excellent return on investment

What is the price plus stock and the net profit?

Price R4000 000 including R200 000 stock, average monthly net R30 000