Fully describe the business's activities?
The business is a well established Funeral Directory Service. The owners believe, as life is valuable, so are the funeral rites that mark its end. A funeral happens once, but is remembered for a lifetime. Their job is to listen to the family, find out what they would like done, and put that plan in action. The bereaved family should not have to worry about the details. The funeral director is the event planner and must ensure that everything happens the way the family would like it to be.
How long has the business been established?
The business was estabilshed in 2002 by the current owner.
How does the business operate on a daily basis?
The business's daily activities are: Prompt removal of the deceased from home/hospital to their mortuary at any time of day or night; Clothing and preparation of the deceased in the coffin; Obtaining the necessary documentation from doctors; Registration of the death with the Department of Home Affairs; Obtaining the official death certificate; Placement of Funeral and Death notices in newspapers; Consultation with ministers, organist and all other participants; Arrangement with chosen Cemetery/Crematorium; Arrangement with florist for all floral requirements; Arranging of family transport; Arrangement with caterers for refreshments; Arranging printed bulletins; Arranging photographer/videographer when required; All individual items such as white pigeons, balloons, bagpipers, various musicians and singers etc.; Professional bereavement and trauma counselors; Memorial works; Professional Estate Administrators; Pet Funerals and Cremations; Eco-Friendly Funerals; The staff is well trained and very experienced to help to make this final goodbye personal, unique and very special with the use of photoâs and personal items.
How are the clients attracted to the business?
The clients are attracted to the business by delivering an outstanding service to the deceased family, such as suggested ideas to consider, and help them through the many decisions that need to be made. They will take the burden of detail off the bereaved family in order for them to concentrate on other matters at hand which does not form part of the funeral.
What Advertising/Marketing is carried out?
Advertising/Marketing is mainly by word of mouth, website and Face Book and community involvement.
Does the business have any contract work?
The Owners prefer not to have contract work, for contracts imply doing the work at below cost. They have institutions and ministers who regard them as "preferred" Funeral Directors and very large loyal customer base who made use of their services before and will contact them again when the need arises.
What competition exists?
There are numerous competition in this industry such as Avbob, Doves, Maartens just to name a few.
What are the seasonal trends?
The high season of the business is during the winter months May to Aug.
Is the business VAT Registered?
The business is a VAT vendor.
What VAT documentation is on file?
All VAT documentation is available to serious buyers.
Are there up-to-date Management Accounts available?
Up-to-date Management Accounts will be made available on request.
What Balance Sheet and Income Statements are available?
Balance Sheet and Income Statements from Feb. 2015 - Feb 2016 are available.
What percentage of the business is cash/credit?
The business does not carry any debtors. They will not undertake a funeral unless it is paid for in full prior to the actual service being delivered..
How could the profitability of the business be improved?
The profitability of the business can be improved by opening more branches and considering to sell funeral policies.
What is the total staff complement?
The total staff complement is eleven.
Give a breakdown of staff/ functions/ length of service?
1 x Office Manager 01/02/2014, 1 x Supervisor Funeral Director 01/06/2002, 1 x PA Office support Funeral Assistant 01/02/2017, 3 x Funeral Directors 01/02/2017, 1 x Admin person 01/03/2012, 1 x admin assistant cum Funeral Assistant 01/11/2015, 1 x Mortuary worker/ funeral assistant 01/01/2016, 1 x Mortuary Assistant 01/04/2016 1 x Funeral assistant 01/08/2014.
Do any receive special perks or incentives?
Office Manger gets use of a company car.
Are they on contract?
All staff is appointed without contracts.
Do any have management potential?
The staff with management potential is in management positions.
How involved is the Owner in running the business?
The Owner is 100% involved in running the business, but the staff is well trained and able to run the business.
When does the current lease end?
The current lease end 31 August 2019.
Is there an option of renewal & what period?
There is an option of renewal. Landlord is fairly negotiable.
What is the annual escalation %?
The annual escalation is 8%.
What are the trading hours?
Monday to Friday 8 to 4.30 Pm/ Standby 24 Hours.
What is the square meters of the business?
The business consist of two offices, mortuary space, with three storage rooms and undercover carport.
Is a copy of the lease available?
A copy of the lease will be available to serious buyers during a due diligence.
Do you require a licence?
Certificate of Competency for Funeral Undertakers
What lease deposit and/or other surety is required?
No deposit and/ or other surety is required.
What are the main assets of the business?
The main assets of the business are vehicles and office equipment.
Are any items not included in the sale?
All assets as per list are included in the sale.
What is their overall condition?
The overall condition is very good and well maintained.
How have they been valued ?
Which assets are on lease/HP and with whom?
The vehicles and some office equipment are currently on lease on lease/HP. The Installments on the Vehicles which is included in the cost of sales is R37 270 pm. The Lease Instalments of R15 558pm for the office equipment is include in the cost sales.
What are their settlement amounts?
The Seller will obtain the settlement amounts on the office equipment when requested by a serious buyer.
Will Seller settle or Buyer to take over?
All vehicles will be settled by the seller but the office equipment leases/rentals must be taken over by the Buyer.
Are copies of agreements available?
Copies of the finance agreements will be made available during the due diligence.
Are they presently insured?
All assets are comprehensively insured.
- This is a long standing business with a good reputation. - The business deliver full funeral and burial services.
- The business does not have a Funeral Insurance book; - They are not represented throughout Gauteng and/or on a national basis.
- A Buyer with a Funeral Insurance book will improve the income considerably; - Open more branches in Gauteng and investigate spreading out on a national basis.
- Pricing by certain competition is a threat in this market as the public does not always realise that low prices will not guarantee attention to detail and satisfactorily funeral arrangements and service delivery; - No advertising other than website and FB.
What is the reason for the sale?
The owners wishes to emigrate.
Why is this a good business?
This is longstanding business delivers a necessary service with empathy and they go the extra mile. It is profitable and has ample room for growth.
What is the price plus stock and the net profit?
Asking price is R5,400 000 including stock of R40,000 The net discretionary income before owner's drawings, depreciation and tax is R158,690 for the 12 months ending 28 February 2017.
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