Summary

We have a commercial and charter fishing business on our books. The main focus of this business has been on the commercial side of things. The charter business is good for when the fishing is quite or for the seasonal holiday makers to go out and fish. There is a set amount of commercial fishing licenses in RSA which makes the possession of this license a ?must have? in order to sell fish in the market place.

1. History Background

Fully describe the business's activities?

We have a commercial and charter fishing business on our books. The main focus of this business has been on the commercial side of things. The charter business is good for when the fishing is quiet or for the seasonal holiday makers to go out and fish. There is a set amount of commercial fishing licenses in RSA which makes the possession of this license a ?must have? in order to sell fish in the market place. The business/licenses has being owned by the current owner for over 30 years. This sale is more of an asset sale, yet this is an ongoing and viable business. The owner has said that it depends on the person who buys this business as to how much they want to earn. Depends on how often or little you go out determines your take for the month. There is a 3 bedroom house for rent on the beach with large concrete slab for the boats. The rent is R2000.00 per month. The commercial fishing license expires end of 2012, then, a reissue for another 15 years. The commercial licence is licensed for up to 10 people. All the engines of the boats will be serviced before take over of new owner. The owner is prepared to stay on and help for up to another 6 months if so required.

2. Present Market

How does the business operate on a daily basis?

As we have said, the owner has focused on the commercial side of the business and sells to reputable companies on the KZN South Coast.

How are the clients attracted to the business?

The business, (charter), relies on word of mouth and regular customers.

What Advertising/Marketing is carried out?

There is no advertising.

3. Financial

Is the business VAT Registered?

There are no financial information, but the owner does have a record of what fish were caught when and have to give the weight as per licence requirement. This is regulation with the commercial fishing licence.

4. Staffing

What is the total staff complement?

The staff are all casual labour.

5. Premises

When does the current lease end?

Competition does exist in this businesses trading environment. There is a 3 bedroom house for rent near the beach for R2000.00 p/month. The house has big cement block for parking the boats.

Do you require a licence?

You will need to have a skippers licence Boat x 2 Seaworthy certificate Commercial fishing licence Sardine net licence Licence to cart fish

6. Assets

Is a full asset list on file?

Here are some of the assets that is included in the sale of the business. Commercial Fishing Boat: 95 Nissan 4x4 with 8000 lbs wann winch 7 meter boat with 2 x 90 hp Mercury outboard motors (monohull) Galvanized trailer Seaworthy certificate SAMSA 10 man Commercial fishing licence Furano Colour fish finder L582 Lawrance GPS / fish finder x 16 Safety equipment Various fishing equipment (detail listed on asset list), reels, gafs, rods, etc Vessel monitoring system Charter Fishing Boat: 5 meter Mono hull boat, 2 x 40 hp Mercury outboard motors. Good trailer and (mag) wheels Lawrence GPS Furano fish finder Safety equipment Various fishing equipment Seaworthy certificate with SAMSA Sardine Seine Net Licence: Licensed until 2015, but must renew every year. 3 Bedroom House for rent: Fully equipped garage with welder, compressor, tools, many spares, dawn riggers, spare Mercury 90 hp engine, furniture etc.

7. S.W.O.T. Analysis

Opportunities?

Grow the charter business with Whale watching, scuba diving tours, shark cage diving.

8. Reason For Sale

What is the reason for the sale?

Owner wants to retire