How long has the business been established?
The owners (husband and wife team) started the business 21 years ago.
What does the business manufacture?
This is a small manufacturing unit focusing on the application of promotional and design items on glass, perspex and the like products. It also manufactures accessories aimed at the casino industry.
How does the business operate on a daily basis?
The business is a vendor with most of the major roll players in the entertainment and casino industry. Work is done on a "per order basis".
How are the clients attracted to the business?
Business relationships have been built up over many years through excellent service delivery and product quality. Most orders are repeat business.
What Advertising/Marketing is carried out?
Other than a website no marketing or advertising is done.
Does the business have any contract work?
Work is done on a "per order basis". The business has been screened and qualified as a preferred product provider. There are no standing orders.
What competition exists?
The only competitors we could identify are a handful of American based companies providing the same products to the casino and entertainment industry to other parts of the world. There are no significant competitors within Africa.
What are the seasonal trends?
No specific trend throughout the year. The business does however close for manufacturing from mid December to the first week of January.
Is the business VAT Registered?
What VAT documentation is on file?
The accountant for the business compiles, completes and submits all returns via e-filing. We do not have any documentation on file.
Are there up-to-date Management Accounts available?
The business utilizes a stock control and point of sale system and all information is available through the system.
What Balance Sheet and Income Statements are available?
Necessary stock control procedures, a customized quotation and invoicing system are in place.
What percentage of the business is cash/credit?
Within the boundaries of South Africa, business with the casino and hospitality industry is done on a 30 day account. General commercial business to companies outside the casino industry is done on a COD basis. Any business beyond the borders of South Africa is done on a 50 % deposit and balance before dispatch basis.
What is the age analysis of the debtors book?
30 days from invoice. Solid clients with no problems of late payments.
How could the profitability of the business be improved?
A massive opportunity to expand the business through new âhigh techâ technology within the casino and hospitality industry as well as other industries. Due to this businessâ long history within the casino and hospitality industry, a main product manufacturer and patent holder has identified this business as the preferred candidate to expand the new technology throughout Africa and has already approached this business for a lucrative opportunity to supply its products to their Indo-Pacific market.
What is the total staff complement?
There are 4 staff positions, of which 2 are vacant positions. Owner and his wife to be replaced by new owner.
Give a breakdown of staff/ functions/ length of service?
1 x Manageress who oversees productions and design and has a full understanding of the businessâ services and products. She has 7.5 yearsâ service with the company 1 x Production and design assistant, who can perform all production duties It is notable that all staff was trained by the owners in all aspects of the design and production tasks
Do any receive special perks or incentives?
The Manageress receives a contribution towards medical scheme and pension fund.
Do any have management potential?
Yes the Manageress definitely has management potential and can run the day to day business activities with the exception of quoting and invoicing.
How involved is the Owner in running the business?
The owner and his wife is 100% involved in the daily activities of the business. They are more than willing to assist with training during any hand over process.
When does the current lease end?
Is there an option of renewal & what period?
Yes. The business has been in the premises for the past 6 years.
What is the annual escalation %?
6.5% per year.
What are the trading hours?
Monday to Friday 8:30 - 17:00
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
No license is required. It is a requirement to be accredited and approved as a Vendor with clients.
What lease deposit and/or other surety is required?
It is expected that the landlord will require a one month lease deposit
What are the main assets of the business?
Laser cutters and printing machinery
What is their overall condition?
Well maintained. Most of the equipment is dated but in excellent working condition. The said equipment is still state-of-the art technology and enables the business to produce a far more superior print quality product.
Do any require repairing?
The film processing unit which is ancillary to the printing machinery should be strongly considered. The owner has already investigated and replacement units are available overseas.
How have they been valued ?
Owner assisted us with comparable figures.
Are they presently insured?
Proper and comprehensive insurance in place.
The business has built up a name in a tight knit community. Its established for 21 years with lots of experience. Low overheads.
The opportunity to expand the business requires a cash injection to establish warehousing and logistics. Such expansion will probably include maintenance contracts. It is the owners view that he doesn't have the required cash.
Slow approval of legislation and awarding of gaming machine operating licenses by the Provincial Gaming Boards to the indirect customer of the business.
What is the reason for the sale?
The owner is considering moving to their coastal property. Owner would however consider a partner to expand the business with a new venture.
Why is this a good business?
Unique product active in a growing industry. The business has created a solid name for itself over the past 21 years.
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Annual Turnover Amount between R 500 thousand and R 6 million