Fully describe the business's activities?
This established KZN business is the largest importer of this product into Africa.
How long has the business been established?
The business was established in 1992.
How long has the owner had the business?
The current owner purchased the business in 2006. Every year the business turn over has increased. Future growth projections indicate an extensive growth if the business expands into Cape Town, JHB and Africa.
How does the business operate on a daily basis?
The owner currently manages the business on a day to day basis, whilst the owner oversees the staff and finances.
How are the clients attracted to the business?
The business has an excellent reputation in the industry, it has won international awards for their service.
What Advertising/Marketing is carried out?
The business attends international and local trade fairs. The business has an informative website which is updated regularly. Brochures are updated and printed bi-annually.
What competition exists?
Their main competition it based in JHB however this business is the largest in KZN.
What are the seasonal trends?
The business is busy throughout the year, slightly quieter December & January.
Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
A VAT return would be available during due diligence.
Are there up-to-date Management Accounts available?
Up to date management accounts are available for qualified buyers.
What Balance Sheet and Income Statements are available?
Annual financial statements and management accounts are available for qualified buyers.
What percentage of the business is cash/credit?
The business is on average 30 days on book for the service department. Sales are C.O.D, equipment is paid for upfront prior to delivery.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The business has the opportunity to grow its presence in Cape Town and JHB.
Is Seller finance available and for what amount?
Seller finance is not available. The new owner would require working capital to purchase stock, the stock level ranges between 3-5 million.
Give a breakdown of staff/ functions/ length of service?
There are 13 staff members excluding the owner. The staff are very competent and reliable. There is a receptionist, 2 assistants, 3 technicians. Operational Manager and general manager. There are 2 book keepers, one of whom has been employed with the business for over 20 years. There is a service manger responsible for spares, 2 sales reps, 1 sales co-ordinator and a business development manager.
Do any receive special perks or incentives?
Staff receive general day to day incentives and a performance bonus at the end of the year.
Are they on contract?
Staff are not on contracts.
How involved is the Owner in running the business?
The owner works in the business full time and would be available to stay on for an extended hand over period, terms to be agreed.
When does the current lease end?
The new lease would be for a period of 3 years with the option to renew for a further 3 years.
What are the trading hours?
Mon - Fri 07.45 - 16.30. Closed weekends and public holidays.
What is the square meters of the business?
The business is 350 square meters.
Is a copy of the lease available?
The owner of the business owns the building and would consider selling the building. Otherwise a lease agreement will be drawn up.
Do you require a licence?
An import and export license is required.
What lease deposit and/or other surety is required?
One month's lease rental is required.
Are any items not included in the sale?
All asset items are included in the sale. Stock will be calculated separately.
What is their overall condition?
Assets are in good condition.
How have they been valued ?
Assets have been valued at replacement value.
Are they presently insured?
The business is insured.
Is a full asset list on file?
The business has recently re branded which was a huge success, despite being an expensive exercise. Several large key accounts were acquired after re branding. The business is growing every year and has a niche market. The owner will remain in the business for an agreed extended hand over period.
No weakness perceived.
Opportunities to sell into Central Africa and JHB
No known threats perceived.
What is the reason for the sale?
The owner would like to retire.
Why is this a good business?
This is an excellent established business offering an essential service. The business represents the worlds top brands in the industry. The staff are settled and very loyal.
What is the price plus stock and the net profit?
The selling price is 4,900,000 plus R4,000,000 stock. The premises are owned by the business, it may be an option to purchase the premises too. Current average monthly net profit R169k per month.
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