Fully describe the business's activities?
The business hires out trailers, mostly large trailers and flatbeds manufactured by the seller in his engineering business to SABS standards.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The seller has a sales site on a very busy corner in an industrial area,
How are the clients attracted to the business?
The business is situated on a very busy corner in an industrial area on the East Rand, they have frequent repeat business and clients come from as far as Pretoria to rent their trailers some of which are large and quite unique
What Advertising/Marketing is carried out?
No formal advertising or webpage other than word of mouth and signage at the premises (which could be considerably improved)
Does the business have any contract work?
No but there are regular customers
What competition exists?
There are other trailer hire companies but few have their range of trailers
What are the seasonal trends?
Sales are fairly constant through the year
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
The business records all jobs on job cards and sales can be confirmed there, expenses can be confirmed via the bank account
What percentage of the business is cash/credit?
All hires are COD with a deposit after credit verification
How could the profitability of the business be improved?
Improve the signage at the site and set up a web site to attract more business
Is Seller finance available and for what amount?
What is the total staff complement?
One full time on site plus the owner only when required
Do any have management potential?
The staff member runs the site and lives on the premises
How involved is the Owner in running the business?
Hardly at all
When does the current lease end?
Currently month to month
Is there an option of renewal & what period?
A new lease will have to be negotiated
What are the trading hours?
07h00 to 17h00 seven daya a week
What is the square meters of the business?
Approximately 200 square metres
Do you require a licence?
Trailers need to be licenced
What are the main assets of the business?
The assets of the business comprise trailers which range from a 6.2 metre flat deck with a 3000kg capacity and 6 metre 2000kg box trailer. There are a total of 14 trailers.
Are any items not included in the sale?
All the trailers are included but not the engineering workshop which is in different premises. The seller has the manufacturing rights for his trailers with the SABS
What is their overall condition?
Excellent and the seller warrants that he will repair any problems for a year (excluding wear and tear items such as tyres)
Do any require repairing?
No, normal maintenance
How have they been valued ?
Which assets are on lease/HP and with whom?
No items on lease/HP
Wide range of larger trailers, from 2.4 metre box trailers to 6 metre trailers
No advertising, poor signage, unfortunately the owner spends little time on the business and turnover has dropped in the year to Feb 2019 as 3 trailers were disposed of and a number of other were off the road for maintenance
Set up a decent web site and improve the signage at the site,
What is the reason for the sale?
Seller 68 years old and is cutting back on his business
Why is this a good business?
Wide range of trailers with a high asset value in an easy to run business
What is the price plus stock and the net profit?
Selling at R280 000 netting over R12000 per month with a high asset base
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