Fully describe the business's activities?
An independent panel beater with its own spray booth. The business is approved for insurance work and is registered with and meets the stringent criteria of SAARAA
How long has the business been established?
This business was started in June 2016 but the Magnacorp brand is well established in the motor industry on the South Coast.
How long has the owner had the business?
Since inception in June 2016
How does the business operate on a daily basis?
Clients bring their vehicles in for bodywork repairs, rust removal and spraypainting
How are the clients attracted to the business?
Primarily through word of mouth recommendation from satisfied clients but also through trade referrals
What Advertising/Marketing is carried out?
Social media activity
Does the business have any contract work?
No contract work but continuous work flow from trade referrals
What competition exists?
There are three large panel beaters on the South Coast who source business from insurance companies
What are the seasonal trends?
January tends to be a quiet month due to the holiday season
Is the business VAT Registered?
The business is not VAT registered
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Complete set of accounts available for the October to September 2017 period
What Balance Sheet and Income Statements are available?
October to September 2017
What percentage of the business is cash/credit?
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Since the business is the only independent panel beater with a spray booth, the insurance industry represents a significant opportunity The current owner also buys, repairs cars which is an additional profit opportunity
Is Seller finance available and for what amount?
Seller finance is not available
What is the payback period?
32 months when owner benefits are taken into consideration
Who is the bookkeeper/Accountant?
Ms Janine Green ACIS
What is the total staff complement?
One panel beater, one spray painter, two labourers
Give a breakdown of staff/ functions/ length of service?
All have been in the business since June 2016
Do any receive special perks or incentives?
They receive overtime pay when required. Perks are given informally at the discretion of the owner.
Are they on contract?
Do any have management potential?
The panel beater could be developed into a manager
How involved is the Owner in running the business?
The owner is totally involved in running the business
When does the current lease end?
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
07h30 to 16h30
What is the square meters of the business?
250 sq. metres under cover and a further 50 sq. metres uncovered
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
A spray booth Grinders and polishers Hydraulic lift 3 Compressors Dozer (Straightener) CO2 welder Plasma cutter
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owners best estimate
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Included in sale price
Are copies of agreements available?
Are they presently insured?
Trade referrals Excellent service reputation Transparent operating style Honesty policy
Spray painter will need to be replaced Economic cycle
Insurance company business Attract a skilled spray painter to replace the incumbent
What is the reason for the sale?
The owner established the business for his son, the spray painter, who is now emigrating
Why is this a good business?
Profitable business with a strong reputation for excellent customer service Trade referrals ensure a constant flow of work The business is approved for insurance work, a significant opportunity not yet tapped
What is the price plus stock and the net profit?
R330 000 No stock is carried due to excellent distribution infrastructure of suppliers
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