Summary

Wholesale office supplies and stationary distributor established 20 years. Easy to run 5 days a week. 4 staff!! Blue chip clients.

1. History Background

Fully describe the business's activities?

This wholesale office supply company was established in 1992 and is only onto it's second owner. The business supplies a full range of office supplies and stationary to a wide client base. Clients are blue chip companies. Currently it operates from a high visibility home office. Full range of goods include stationary, paper, groceries, cleaning agents etc.Ration packs have become very popular.

How long has the business been established?

Business has been around since 1992.

How long has the owner had the business?

Current owner has owned since 2009.

2. Present Market

How does the business operate on a daily basis?

There are 4 staff and owner. Clients will typically place orders which are "picked" and delivery either the same or next day.

How are the clients attracted to the business?

Customers are Blue chip companies, who have used business before. Word of mouth or when staff move jobs.

What Advertising/Marketing is carried out?

No marketing is done

Does the business have any contract work?

No

What competition exists?

There are , however their length of service and quality of service retains the clients

What are the seasonal trends?

Seasonal changes are around the holiday periods.

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

No

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

Yes

What percentage of the business is cash/credit?

Most clients are on account.

What is the age analysis of the debtors book?

45 days

How could the profitability of the business be improved?

Expand the range of goods. This will require working capital.

Is Seller finance available and for what amount?

NO

What is the payback period?

20 months

What is the ROI?

58%

4. Staffing

What is the total staff complement?

4 staff: 2 drivers 2 stores

Are they on contract?

Yes

Do any have management potential?

Staff have been in business a long time and stores staff can answer the phone when owner is not available.

How involved is the Owner in running the business?

Owner in daily

5. Premises

When does the current lease end?

Seller owns the property and and the lease options are open.

What are the trading hours?

Mon - Friday

What is the square meters of the business?

50 m2 required for office and 170m2 for storage. Business can easily be relocated

6. Assets

Is a full asset list on file?

Office assets are in good condition. Vehicles are old and will need to be replaced in the future.

Which assets are on lease/HP and with whom?

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

Very well established, great reputation, solid client base, blue chip clients, well trained experienced staff

Weaknesses?

Requires cash to grow the business

Opportunities?

Expand the range, more marketing, rep on the road

Threats?

Other competitiors

8. Reason For Sale

What is the reason for the sale?

Seller wants to relocate

9. Conclusion

Why is this a good business?

A great week day business with solid reputation

What is the price plus stock and the net profit?

R800,000+stock