Summary

A well known dealer of Kawasaki motor bikes. The business services all makes of bikes and sells parts and bike accessories

1. History Background

Fully describe the business's activities?

Sales, service and accessories for off road motor bikes. The business is a Kawasaki dealer but sells parts and equipment for other brands as well. Most of the profit is generated by the workshop.

How long has the business been established?

7 years

How long has the owner had the business?

7 years

2. Present Market

How does the business operate on a daily basis?

Buyers visit the store to buy the latest equipment or to bring their bikes in for repairs and services.

How are the clients attracted to the business?

The business is well known amongst off road bikers and the business has a significant amount of regular customers as a result of the well stocked shop and friendly service.

What Advertising/Marketing is carried out?

Adverts in off road motor bike magazines such as Bike SA

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

VAT returns are available on request

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

February 2011

What is the age analysis of the debtors book?

No debtors

How could the profitability of the business be improved?

Very little advertising is done and the business does not have a website. Orders could be taken over the web as the business already ships parts to neighboring countries. A buyer could look at being a dealer for other brands in addition to Kawasaki

What is the payback period?

46 months

What is the ROI?

26%

4. Staffing

What is the total staff complement?

6 staff

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

3 workshop, 2 front shop assistants and part time bookeeper.

Do any have management potential?

Yes

How involved is the Owner in running the business?

Orders stock, manages the staff and interacts with the customers

5. Premises

When does the current lease end?

5 years

Is there an option of renewal & what period?

Yes 5 years or longer

What is the annual escalation %?

5 to 7%

What are the trading hours?

Monday to Friday 8.00am to 5.30pm. Saturdays 8.30am to 1pm. Closed on Sundays and public holidays

Is a copy of the lease available?

Yes

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

Laptop used by the owner

What is their overall condition?

Good

7. S.W.O.T. Analysis

Strengths?

Well run business with a good reputation.

Weaknesses?

Location

Opportunities?

Expansion by stocking other brands and internet sales and marketing

Threats?

Other dealers

8. Reason For Sale

What is the reason for the sale?

Owner wishes to move to the coast

9. Conclusion

Why is this a good business?

This is a well run business that does not need fixing. A new owner can focus on learning the business and then work on expanding

What is the price plus stock and the net profit?

R3 million including stock