Fully describe the business's activities?
Retail and loans business serving the greater Pretoria area with 2,000 active clients and a known base of 24,000 clients. The business has a full compliment of 16 representatives and with 16 canvas staff supporting them while they look after the clients. This is a Direct Marketing company so this business has effectively 16 prime sites in Pretoria without the associated cost such as rents normally linked to these.
How long has the business been established?
How long has the owner had the business?
The owner started the business
How does the business operate on a daily basis?
While the business is fully owner run it does not require him to be on site all the times there are three full time managers in the business.
How are the clients attracted to the business?
Word of mouth is a big driver
What Advertising/Marketing is carried out?
There is a compliment of 16 canvassing ladies that walk around looking for business while the rep does their work
Does the business have any contract work?
What competition exists?
What are the seasonal trends?
January and February are the quieter months because of leave and the annual shutdown in December
Is the business VAT Registered?
What VAT documentation is on file?
All Vat returns are available
Are there up-to-date Management Accounts available?
Yes The Debtors in this report is the Outstanding Balance on the Retail side and total Loans amount.
What Balance Sheet and Income Statements are available?
Available for all years
What percentage of the business is cash/credit?
This is a cash business, however except for some expenses that are paid cash all the funds are banked and verifyable.
What is the age analysis of the debtors book?
The loan term on the retail side of the business is maximum three months and 30 days on the cash loan side.
How could the profitability of the business be improved?
Incentivise the reps on the cash loan side of the business as any increase here is basically net profit, this will be explained to serious buyers
Is Seller finance available and for what amount?
What is the total staff complement?
34 Staff members
Give a breakdown of staff/ functions/ length of service?
2 x Admin 16 X Reps (3 are also managers with their own areas) 16 x Canvassing ladies
Do any receive special perks or incentives?
Managers - Basic + Petrol + Comm + Team Comm Reps - Basic + Petrol + Comm Canvassers - Basic + Transport + Comm
Are they on contract?
Yes and the business makes use of SEESA
Do any have management potential?
Yes two of the managers do
How involved is the Owner in running the business?
The owner is fully involved in running the business
When does the current lease end?
The property is owned by the seller and the buyer can either rent the property or buy the property for an additional R1.5m. The property has rights to build three double story buildings, the roof of the third building is already standing as the car port at the back of the property and the driveway and entrances are already as required.
Is there an option of renewal & what period?
If the buyer elects to rent the property it will be through the SecureRent product and the seller will be happy with 2 to 3 years
What is the annual escalation %?
As part of the rental negotiations
What are the trading hours?
Monday to Friday 07:30 to 16:30 Closed Sundays and Public Holidays
What is the square meters of the business?
Is a copy of the lease available?
Will be drawn up
Do you require a licence?
Must be registered with the NCR and MFSA
What are the main assets of the business?
On the asset list the seller will supply
Are any items not included in the sale?
Some personal files, then also the property maintenance equipment such as the lawn mower. If renting it will only be for the office portion, the garage will be excluded
What is their overall condition?
Do any require repairing?
Ongoing maintenance and repairs are performed
How have they been valued ?
Based on acquisition value
Which assets are on lease/HP and with whom?
Are they presently insured?
Great growth potential, Cash business, Very well known in the market as they have been around for a long time, Constant demand for the products of the company, That clients have three months to pay
Staff can be a weakness, strikes as then neither staff or clients can get to work
The opportunities are only limited by the owners vision, You are not limited to the rental space or to the area, Can add additional products and services which the reps can execute as they already in the areas
Having cash in the business
What is the reason for the sale?
After doing this for over 20 years the seller is ready for a change
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Annual Turnover Amount between R 500 thousand and R 6 million