Fully describe the business's activities?
The business supply a wide range of new and used auto spares.
How long has the business been established?
The business was established in 2012.
How long has the owner had the business?
The owner have the business since inception.
How does the business operate on a daily basis?
The main activity of the business is to attend to walk-in customers and to attend to orders received telephonically or via email. The management of stock levels with specific attention to the right type of stock.
How are the clients attracted to the business?
Clients have been attracted to the business through the unique model of the business by supplying new and used parts. Customers are referred to the business by word of mouth and other auto spare suppliers and motor vehicle dealers.
What Advertising/Marketing is carried out?
The business has their own website and advertises on Facebook, Gumtree, OLX and Junkmail.
Does the business have any contract work?
The business does not have any contract work but have many regular clients.
What competition exists?
There are other auto spares suppliers, but this business is one of a few that supply new and used.
Is the business VAT Registered?
This business is VAT registered.
What VAT documentation is on file?
All VAT documentation will be made available to serious buyers during a due diligence process.
Are there up-to-date Management Accounts available?
Management financial records up to August 2017 is available
What Balance Sheet and Income Statements are available?
The seller appointed an account recently who is in the process of preparing financial statements for the last 2-3 years.
What percentage of the business is cash/credit?
The business operates on a 100% cash basis obviously including either debit and credit card payments.
What is the age analysis of the debtors book?
The business trades on a 100% cash basis.
How could the profitability of the business be improved?
The profitability of the business can be improved by advertising in the local newspaper and by direct marketing to panel beaters and secondhand motor dealers in the area.
Is Seller finance available and for what amount?
The Seller will not consider vendor finance.
Who is the bookkeeper/Accountant?
The owner is responsible for the accounting records of the business but has recently appointed an accountant to attend to the more advance accounting requirements.
What is the total staff complement?
The current staff complement is 2 excluding the owner.
Give a breakdown of staff/ functions/ length of service?
2 x Sales representatives, attending to customers and certain administrative functions.
Do any receive special perks or incentives?
None of the staff receive any perks.
Are they on contract?
The staff is permanently appointed.
Do any have management potential?
At least one of the staff members has management potential and with more training and exposure he can develop in a manager for the business.
How involved is the Owner in running the business?
The owner is 100% involved in the business.
When does the current lease end?
The current lease end June 2019.
Is there an option of renewal & what period?
There is an option to renew for 3 - 4 years.
What is the annual escalation %?
The annual escalation can be negotiate between 8 - 12 %
What are the trading hours?
Mon - Fri 8.30 am to 5 pm and Sat 8.30 am to 1 pm. Close on Sundays and Public Holidays.
What is the square meters of the business?
The shop space is 102mÂ².
Who is the Owner/Landlord?
Is a copy of the lease available?
We have a copy of the lease on file.
Do you require a licence?
A license to trade in used spare parts is required.
What lease deposit and/or other surety is required?
Two months of the lease in advance is required by the landlord.
What are the main assets of the business?
The main assets of the business is the shelving, office equipment and delivery vehicle. We have an asset list on file.
Are any items not included in the sale?
All assets as per list are include in the sale.
What is their overall condition?
All assets are in good condition.
Do any require repairing?
None of the assets require repairing.
How have they been valued ?
Assets have been valued by the owner.
Which assets are on lease/HP and with whom?
None of the assets are on lease/HP.
Are they presently insured?
All assets are comprehensively insured.
The business is known for supplying hard to find parts especially for older vehicle models, which resulted in generating more referrals from regular customers and other auto spare dealers/secondhand vehicle dealers. In the current economic situation, more and more people buy use auto body parts.
This is a highly competitive market.
The growth of the business needs serious attention to marketing, such as marketing to more auto body shops in the area, panel beaters and secondhand vehicle dealers as well as advertising in the local newspaper.
The current economic climate. Lack of a marketing strategy.
What is the reason for the sale?
The sellers have grown the business since inception and have achieved their objectives and would now like to focus on other business interests.
Why is this a good business?
The business is well established with good systems in place but it can still increase productivity and subsequently, profits. There are growth potential.
What is the price plus stock and the net profit?
The asking price including the stock is R 1,700 000.00 with an average monthly profit of R 54,927 prior to tax, depreciation and owner's drawings.
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