Fully describe the business's activities?
The business is a long established funeral service provider in the Mpumalanga Province of South Africa
How long has the owner had the business?
The owners of the business were the establisher of the business in 1999 and have been involved in operating the business since then.
Short overview of the business.
The business has a long trading history and has amassed a solid reputation for delivering a professional service to its clients. The monthly contributions for the services the business offers are affordable which is attractive in encouraging clients to the business. The business is conveniently and centrally situated in the heart of Mpumanaga .The business has been owned by the same owners for many years and the reason for them relinquishing there ownership is that they wish to relocate. The business is one a few that has its own mortuary and refrigeration on its premises capable of accommodating at least 25 remains. The seller will look at selling the premises should the new owners be interested in doing so. Some of the smaller funeral homes make use of the businesses facilties The business could benefit from more adverting and aggressive marketing . This business would suite integration into a larger corporate funeral service provider if they were looking to expand their footprint into the geographical area where the business is situated as the infrastructure of the bossiness lends itself for this exact opportunity.
How does the business operate on a daily basis?
The business operates on a daily basis by supplying the services of a funeral parlor to the public. The business has 3 branches 2 of which are payment collection points, some at pension payment points. These operate by collecting monthly premium contributions for policies for their funeral cover from clients. All three operate under their own Pty .The main branch is from where the whole process is undertaken. The premises are equipped with refrigeration to house the deceased until they are either buried or cremated. The refrigeration facility is capable of housing at least 25 remains . The business offers the service for the entire process from the collection of the deceased to its safe keeping during the intermediate process prior to burial in their refrigerated rooms and then onto the funeral of either burial or cremation. The business also attends to the registration of the death and leaves no matters unattended to for the grieving family to worry about during this sad time. The business has several vehicles to transport the deceased from their place of demise to the funeral parlor where they are kept until the families come to choose their caskets and flowers all of which the business provides and then onto the cometary for the final process. The business arranges everything related to the burial and attends to the specifics on behalf of the family as may be requested. Smaller funeral homes make use of the businesses refrigerated storage as they do not have their own. This generates additional income into the business. The business also supplies caskets and flowers
What competition exists?
There are several smaller funeral homes and 2 brand name funeral homes operational within the same geographical areas as the business. This has never impacted on the business at all reason being some of the smaller funeral homes do not have their own refrigeration to store the deceased and as many suitable vehicles to transport the deceased so they are compelled to they seek the services and assistance and facilities of the business for the process. The business has experienced over time that many of the smaller funeral homes come and go and this creates an even greater demand for their services when one of these closes.
Is the business VAT Registered?
Yes, the business is VAT registered and all the required historical information is available on file for perusal by a qualified buyer.
Are there up-to-date Management Accounts available?
The business has up to date operational management accounts, current 2016 and historical audited financial on file for all 3 branches.
What is the total staff complement?
The staff compliment is 13 permanent and 2 casual. This compliment excludes the 2 owners .They comprise of 5 drivers whose duties are to go to pension points and do 1 week standby at least once a month, do removals during the week, do the funerals on weekends, help with setting up graves, do confining, keep the vehicles in a good clean condition and ready for collections and funerals, check continuously the funeral equipment that it is a good clean and working order, clean vehicles and trailers, go to the branches and collect money and receipts, assist the doctor when necessary, clean the premises, yard , mortuary, store room and viewing room. They are paid weekly. There are 2 employees who are non-permanent who work at the pension points, they work between the 1st and 15th of every month, receive R20,00 per day for transport and are paid weekly for their services. Their service include going to the pension points to collect the insurance money, issue receipts thereon, explain to clients how the businesses policies work , assist the applicant with completing application forms and enrolling as many new clients as they can .In addition they market the businessâs services for private funerals. Then there is 1 employee that attends to the local branches pension point and her duties are the same as the other 2 casual workers in addition she attends to the cleaning of the local branch. The objectives here are that these staff members try and enlist as many new clients as they can at these pension points. There are 4 office assistant 2 at the one branch and then 1 each at the other 2 branches, their duties are receptionist, client liaising and explaining how the funeral policies work, continuously checking files and updating files of clients, assisting client with completing application forms, obtaining all the documentation from the clientâs which is necessary for the policy, remove obsolete files, assist in enlisting new members and to canvas for private funerals. Then there is 1 funeral arrangement clerk / office assistant whose duties include everything surrounding the arranging of the funeral, informing the families of the procedure and all the arrangements, receptionist, client interaction, data information clarification, assisting applicants with applications and enlisting new clients when possible. There is 1 office administrator, she balances the cash every day, does general journal, cash book and balance reconciliations for all 3 branches, receives the money from all 3 branches and pension points, does the weekly wages, captures data and payments on the businessâs computer program, completes funeral files after the weekends funerals, does payments and bank transfers, when attending to the payments she becomes aware of lapsed policies due to nonpayment of premiums by clients and passes them onto the receptionist who renders them obsolete and discontinues the policy, she attends to the funeral pay sheet every Friday, prints and monitors attendance register every month, and keeps personnel records updated , she also confirms receipt of payment from clients through the branches. Then there is the manageress who attends to most of the data capture on an excel spread sheet, of receipts, new clients, applications, UIF, for all 3 branches, PAYE , IRP5 , workmen's compensation ,depositing cash, pays accounts, prints funeral lists for drivers, packs and unpacks funeral bags for funerals during the week and weekends and she attends to marketing by sms to clients wishing them happy birthday and requesting any arrears of late payments The owners overall manage the operations and are actively involved in the business on a casual basis. The business can be manager run from a distance.
What are the trading hours?
The trading hours are 24 /7 .Collections are done at any and all times on demand. The collection staff has accommodation on the premises.
Is a copy of the lease available?
The premises are conveniently centrally situated .The seller is the owner of the main premises where the refrigeration and main operations of the business takes place. The other 2 satellite branches are rented, the one on a month to month basis and the other has a lease which expires at the end of April 2018. The seller has confirmed that the month to month of the one premises will continue with the landlords on provision the new owner pays the rent regularly and on time. The other satellite premises which currently has a lease the landlord will sign a new lease with the new owner and extend an offer to renew at an escalation of 10% and for a period of about 2 years .The main premises owned by the sellers has been tailored to suite the nature of the business, with refrigeration, back up generator , storage, viewing rooms, mortuary, parking, family seating area, reception and emergency staff sleeping quarters. The sellers will extend the new owners as long a lease as they require for the business with options for renewal .The annual escalation will be between 8 and 10%. The current figures to compile this mandated report reflect rentals for all 3 premises and the rental for the main premises is expressed in the report at what the seller will charge the new owner for during their first operational year. The premises can also be purchased from the seller should the new owner be interested in doing so .The premises also have 5 rooms at the back of the property which are rented out to tenants and if the property is purchased this income will revert to the new owners. Upon interest in purchasing the premises the pricing for the premises will be available on request.
Are the assets fully paid for?
All the loose assets are fully paid for and are the unencumbered property of the businesses. These include office furniture, computers, copierâs printers, scanner, kitchen appliances, CCTV Cameras and coffin stands. The assets are all in a good condition .Detrimental to the businesses operations and amongst the assets are vehicles 3 flat deck platform trailers, 1x box trailer,1 x pick up Bakkie, 1x sedan, 1xpanel van, 2 x station wagons, 1 x combi mini microbus. Any vehicles which may still be under HP will be settled in full for the new owner. There is also refrigeration to house the deceased and a huge backup generator in times of power failure. The assets are insured.
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Annual Turnover Amount between R 500 thousand and R 6 million