Fully describe the business's activities?
Manufacture, marketing and distribution of bed products to retailers. Retailers distribute these products throughout Africa and Southern Africa. There is also an active website which generates online orders.
How long has the business been established?
The business was established in 1996.
How long has the owner had the business?
Current owner has had the business since 2001.
How does the business operate on a daily basis?
Products are manufactured/assembled on site according to orders received, and distributed countrywide via a courier service.
How are the clients attracted to the business?
Business has a very active website. Business has many longstanding business arrangements and contacts in place over the last 20 years, and is well known within the retail market.
What Advertising/Marketing is carried out?
The only advertising that is carried out is via the website, which has now started to generate online orders.
Does the business have any contract work?
Business has annual trade agreements with retailers, have been on their panels, and have been supplying to these retailers over the last 20 years.
What competition exists?
There will always be competitors in this Industry, but this a well known and trusted supplier to the retail market over the last 20 years.
What are the seasonal trends?
Business is busy all year round, but December is always the busiest month in retail.
Is the business VAT Registered?
The business is Vat registered.
What VAT documentation is on file?
Upto date Vat documentation is on file.
Are there up-to-date Management Accounts available?
Up-to-date Management Accounts are available to qualified buyers.
What Balance Sheet and Income Statements are available?
2016 AFS are available .
What percentage of the business is cash/credit?
Retailers pay on account, and since they are listed companies, they pay either 30 or 60 days. Being listed companies they pay on time and there is no bad debt.
How could the profitability of the business be improved?
The profitability of the business could easily be increased by taking on additional lines. Relationships with retailers and distribution channels are already in place, so to add on a couple of additional lines would increase the turnover and profitability of the business substantially.
Is Seller finance available and for what amount?
Seller finance is not an option.
What is the total staff complement?
There are 9 staff members.
Give a breakdown of staff/ functions/ length of service?
1 Owner 1 Manager - 8 years 1 Supervisor - 5 years 7 Permanent factory staff - 4 years
Do any receive special perks or incentives?
Are they on contract?
Staff are on Contracts.
Do any have management potential?
There is a very efficient and experienced Manager in place.
How involved is the Owner in running the business?
The owner is involved in the business on a part time basis.
When does the current lease end?
The business has been on a month to month agreement for the last 8 years. Current lease will however come to an end December 2018 and therefore the business will have to move. Current owner has identified a few locations and posibilities to be discussed with buyer.
What is the annual escalation %?
What are the trading hours?
Monday- Friday 7.30am-4.45pm
What is the square meters of the business?
Do you require a licence?
No Licence is required.
What are the main assets of the business?
An asset list will is on file, but there are very few assets.
Are any items not included in the sale?
There is a private vehicle that is not included in the sale.
What is their overall condition?
Overall condition is fair.
How have they been valued ?
They have been valued at market price.
What are their settlement amounts?
There are no settlement amounts.
Well established, profitable and easy to run business. Well known within the retail market Well placed logistically Countrywide Dealing with Listed companies.
Equipment is subleased. So if a new owner wanted to get their own equipment, there would be additional cost of approximately R300 000. Premises is on a month to month basis, but it would be very easy to relocate if required.
There is enormous growth potential to take on additional lines. There are Trade shows overseas every year with new product lines, the current owner does not attend the Trade shows as he does not enjoy travelling.
No threats perceived.
What is the reason for the sale?
The owner wishes to immigrate to the UK and have other business interest there.
Why is this a good business?
Manager run, easy to run, uncomplicated business. Low overheads. Huge potential for expansion. Well established, been in the Industry for 20 years.
What is the price plus stock and the net profit?
The price of the business is R 3 500 000.00, inclusive of R 250 000.00 worth of assets and R 300 000.00 worth of stock. Monthly NP of approximately R 129 000.00 pm.
Annual Turnover Amount between R 500 thousand and R 6 million