Fully describe the business's activities?
The company manufactures and installs a vast range of branded aluminium sliding security gates for windows and doors. The entity is part of a very successful National Franchise, which is by far the Market leader in this field. The company measures for fitment and once confirmed with the buyer, the order is placed with franchisor factory. Once received, the security barrier is installed at the client's premises by a trained fitment team. A 70% up-front deposit is payable upon order to secure manufacture.
How long has the business been established?
How long has the owner had the business?
Since inception - 19 years
How does the business operate on a daily basis?
Potential customers either phone the compnay or come to the offices/showroom, to request measure/quote for security doors. Experienced fiitment teams measure for fitment and once product, colour, size are confirmed by the buyer, the order is placed with franchisor factory. Once received, the security barrier is installed at the client's premises by a trained fitment team. A 70% up-front deposit is payable upon order to secure manufacture.
How are the clients attracted to the business?
National and local marketing advertising of the Brand name. Referrals and word of mouth. The company's showroom is also a good marketing tool. Corporate sponsorships and community involvement also attract clientele.
What Advertising/Marketing is carried out?
See above - both National in magazines in television is carried out, as well as local advertising in magazines and publications. A 3% budgeted spend on marketing is agreed with head office.
Does the business have any contract work?
What competition exists?
Other National brands in the sliding aluminium door/window market. The company however is the market/brand leader so is constantly under pressure from other cheaper inferior quality brands.
What are the seasonal trends?
Traditionally October and November are very busy months, but other busy periods are Feb/March and June/July.
Is the business VAT Registered?
What VAT documentation is on file?
All Vat documentation
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Feb 2017 audited AFS plus current management accounts.
What percentage of the business is cash/credit?
70% upfront - EFT/Cash. 30% credit - payable upon final fitment.
What is the age analysis of the debtors book?
Maximum14 days - 70% deposit and 30% is payable upon fitment/installation.
How could the profitability of the business be improved?
The franchisee purposely moved away from automated garage doors and shutters a few years ago to concentrate on hsi core business of security door/windows. These synergistic options could be re-opened to add further value to client offerings.
Is Seller finance available and for what amount?
What is the total staff complement?
Do any receive special perks or incentives?
Main foreman receives phone allowance and use of company vehicle.
Are they on contract?
Do any have management potential?
Yes, the main sales lady and foreman have potential - have been with the company for an extended period of service.
How involved is the Owner in running the business?
100% currently, but is in process of setting up/implementation of controls which will allow more flexibility.
When does the current lease end?
Is there an option of renewal & what period?
Yes, negotiable from 2-5 years after initial period.
What is the annual escalation %?
What are the trading hours?
Mon - Fri : 8am-5pm Sat : 9-12.30pm
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
No, but the buyer would have to be approved by the Main Frnachisor. NO franchise fees are payable monthly, but the franchisee has to purchase all stock from the franchisor factory, subject to monthly sales budgets set annually...
What lease deposit and/or other surety is required?
One month's deposit
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
No, all in good condition
How have they been valued ?
Depreciated market value
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Seller will settle
Will Seller settle or Buyer to take over?
Seller to settle
Are copies of agreements available?
Are they presently insured?
Is a full asset list on file?
Part of a Very successful franchise that has been around for many years and has a proven track record to be the Market brand leader for this product !! With RSA's high and ever increasing crime rate, there is always a demand for security related product.... Only security door product in South Africa with international accreditation.
Increased buyer awareness with competitive quoting/offerings does sometimes put this premium product out of range of certain markets.
To offer other aluminium products that are part of the national umbrella range. The company is now offering 'rent to own' sales on products which assist to a degree with financing of installations.
Other cheaper products/imitations in the market. Most of the other national brands are represented in the city. Slow down in RSA economy, affecting all businesses in the retail/wholesale sphere.
What is the reason for the sale?
Seller wishes to explore new business opportunities
Why is this a good business?
Fantastic franchised business - part of premium national brand that has proven over the years, to be a Market leader and very sustainable model.
What is the price plus stock and the net profit?
Price = R 9 000 000 (incl. stock/fixed assets) Nett profit = R 130 000 per month
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