Fully describe the business's activities?
This business specialises in the production of uniquely designed custom-made mascots to clients worldwide. Whether for brand recognition, awareness, corporate promotions, education, school and sporting events, spirit building, trade shows or marketing they can make it.
How long has the business been established?
The current owner started the business in 1996
How long has the owner had the business?
How does the business operate on a daily basis?
The Owner has an efficient staff structure in place with each team member having their own area of responsibility. The Owner acts in a General Management role and need not be present at all times since the production team is well structured and able to work independantly.
How are the clients attracted to the business?
This is a very niche market business and there are only a few others within SA with this one enjoying the major market share. This particular company is well known for its quality of product and service levels.
What Advertising/Marketing is carried out?
Product type does not lend itself to high impact above the line marketing initiatives ...it is a destination business. As it is a sought after business with specific product offering, the business has a strong exposure on it's web site along with similar type media.
Does the business have any contract work?
The business does repeat work for many corporate clients who have strong above the line branding. Currently they have orders for a property business in Finland. Much cross border work in Africa. Even when no signed agreements are in place, this business hold the molds and therefore get repeat orders as and when required by the client.
What competition exists?
There are a few smaller operators and two other main stream players. Despite competition, this business often has an order book of a few months ahead.
What are the seasonal trends?
The trend allows the business to close for two weeks in December but there is no other significant seasonality.
Is the business VAT Registered?
What VAT documentation is on file?
Current, as and when required.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Predominately EFT payments from clients who are mainly corporate. Deposits are also by EFT which assists cash flow.
What is the age analysis of the debtors book?
Debtors book is kept in good order as product is fully paid prior to leaving the business. A deposit of 50% is obtained prior to commencement of manufacture.
What is the total staff complement?
9 Staff all part of the operational team, overseen by the Owner.
Give a breakdown of staff/ functions/ length of service?
The staff structure and various areas of responsibility will be advised to a prospective Buyer as required.
Do any receive special perks or incentives?
As per the Dept of Labour.
Are they on contract?
Normal conditions of employment.
Do any have management potential?
There are certain staff members who do display personal growth potential.
How involved is the Owner in running the business?
Daily in a General Management role, but need not be present at the business full day
When does the current lease end?
The business property is owned by the Seller and a lease suitable to both parties will be negotiated. As the business is not dependant on passing trade it could be operated from any premises.
What are the trading hours?
Monday to Fridays 08-00 to 5-00 pm. Saturday work may be required depending upon the work load.
What is the square meters of the business?
The current space utilisation is in the region of 250 sq Meters.
Is a copy of the lease available?
A lease will be offered at time of business take over.
Do you require a licence?
The business holds both Import and Export licenses and these will be taken over by the Buyer.
What lease deposit and/or other surety is required?
1 Months rental.
What are the main assets of the business?
Moulds, equipment, materials etc. 20 years worth of patterns are kept in storage.
Are any items not included in the sale?
Yes, there are a few personal items on the premises that the Owner will point out to the potential Buyer.
What is their overall condition?
All assets are in good working order.
Are they presently insured?
An extremely niche market business with strong client base. Work normally undertaken for corporate clients securing payment. Strong barrier to entry for other operators wishing to enter the market. Have many international clients and have completed work for numerous export customers. Well trained and stable staff complement. A very professional and well laid out web site.
Well trained staff not easy to replace. Cross border opportunities have not been exploited.
Cross border business opportunities need to be exploited. The Owner is prepared to assist the future development of this business on a consultancy or part time basis as and if required. There are still markets that have not yet been exploited.
There are no known threats to this business by an operator who delivers quality and service.
What is the reason for the sale?
After many years in similar businesses and in this one, the Owner feels that it is time to pursue personal interests. This is the sole reason for selling and the Owner is still prepared to assist in the future if and when required by agreement.
Why is this a good business?
It is a difficult market to enter by new players and this business is already well established and known for their quality of product. This business holds the molds for many corporate customers. Currently exporting to Finland. A lot of the work is now cross border or export, and all orders are fully paid for before delivery. The product gets extremely high above the line visibility and the quality presented ensures repeat users and new customers.
What is the price plus stock and the net profit?
The stock is in the region of R300,000. Average profit is around R400,000 per annum. The selling price without stock is R1 100 000.
What is the envisaged profile of the ideal Buyer?
The ideal Buyer should display the following criteria: - Entrepreneurial. - Explore the international market which is a strong development opportunity. - Be management orientated.
Annual Turnover Amount between R 500 thousand and R 6 million