Fully describe the business's activities?
This is a well-known packaging supply business in the Garden Route. They stock an extended range of packaging supplies such as boxes, bubble wrap, bottles and containers. They also offer baking supplies and quality yet affordable cleaning materials. They supply to wholesalers and retailers as well as the general public.
How long has the business been established?
The owners established the business 20 years ago.
How does the business operate on a daily basis?
Orders are delivered daily. Once a week the truck collects goods. The shop that supplies to the public is well-known and most people in town shop there for any packaging requirements that they have.
How are the clients attracted to the business?
The business is very well known in the surrounding area and they rely mostly on word of mouth referrals.
Does the business have any contract work?
They do not have any contract work as such but they have about 2000 wholesale and retail clients that order from them on a regular basis.
What competition exists?
No competition in town but other packaging companies in neighboring town. This business is however able to provide the products at a substantial lower price than the competition.
What are the seasonal trends?
Although seasonality has no significant impact they are busier over the summer holidays starting in November up to about February
Is the business VAT Registered?
What VAT documentation is on file?
All that is 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?
About 40% is credit
What is the age analysis of the debtors book?
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
4 Cashiers 2 Buyers 1 Marketer (focusing on development of WebSite at the moment) 1 Telephone 1 Manager 3 Drivers 11 Store men
Are they on contract?
Do any have management potential?
Yes two of ladies have been working for the company for many years and they are capable to manage
How involved is the Owner in running the business?
Husband and wife team. Husband not involved on a full-time basis.
When does the current lease end?
The premises consists of a shop and a two warehouses. They rent the shop and the current owner owns the warehouses. The buyer will be able to rent all premises for a 3 or 5 year period.
What is the annual escalation %?
What are the trading hours?
Monday to Thursday 08:00 - 17:00 Friday 08:00 - 16:00
What is the square meters of the business?
Shop 700m2 Warehouse 525m2 Warehouse 200m2
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
One month rent
What are the main assets of the business?
Truck, 3 x Delivery Vehicles, Fork Lift. The delivery vehicles as well as the big truck will be housed in the one warehouse.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
All vehicles book value, rest owner valued
Which assets are on lease/HP and with whom?
Are they presently insured?
This is a well established, very well-known and respected business that is still showing year on year growth. The products meet a basic need that will always be in demand.
Owners did not utilize opportunities last few years as they did not care to grow the business any more.
More attention can be given to marketing. Some representatives can be appointed to do direct marketing. All systems are in place (delivery vehicles etc) to expand the delivery area. Can open on Saturday - huge demand to open on Saturdays- extra 4 days trading.
None that can be seen
What is the reason for the sale?
They would like to retire
Why is this a good business?
All processes and procedures from sourcing the best quality products at the cheapest prices to the delivery from suppliers and to buyers are established. The public love the shop and all that they offer. It is perceived as real value for money. Older than 20 years.
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