Fully describe the business's activities?
The business owns its own dry cleaning machine and also do dry cleaning for a number of dry cleaners. Furthermore they do laundry, tailoring and shoe repairs.
How long has the business been established?
The business was established 22 years ago.
How long has the owner had the business?
The seller bought this business 12 years ago.
How does the business operate on a daily basis?
The manager opens and closes most of the time. Sometimes the owner opens and close. Clients bring in their dry cleaning, washing for washing and ironing, tailoring and shoe repairs.. The business also do carpet cleaning.
How are the clients attracted to the business?
The shop has regular clients and the business has been in operation for 22 years and is well known. Sign board is also prominent and the business is located in a shopping centre.
What Advertising/Marketing is carried out?
No advertising or marketing is being done due to the large and regular client base.
Does the business have any contract work?
The shop has a regular client base which was built up over the years. Some washing and ironing are being done for restaurants and 6 other laundries are bringing their dry cleaning to be done at this shop.
What competition exists?
There is another dry cleaner and laundry in the area.
What are the seasonal trends?
Very steady turnover throughout the year as seen in the management accounts.
Is the business VAT Registered?
No, the business is not VAT registered.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Management accounts for the period January 2017 to December 2017 are on file.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
The business has a credit card machine. 40% swipe and 60% cash.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Do key cutting as there is no other business in the shopping centre offering key cutting. Incorporate boxman for removals R20,000 pm profit is up for graps as the GP is 40% Website and pamphlets.
Is Seller finance available and for what amount?
The seller wish to emigrate back to his birth land and wishes to get his money upfront/
What is the total staff complement?
1 Manager who has been with the owner for many years is earning R3,200 pm 1 Lady has been with the business for 4 years and earns R3,000 pm 1 Temp who works 3 days per week at R100 per day
Give a breakdown of staff/ functions/ length of service?
Do any receive special perks or incentives?
Xmas bonus of R500 each per discretion of the owner
Are they on contract?
Do any have management potential?
yes the manager is able to run the business in the absence of the owner and open and close
How involved is the Owner in running the business?
The owner spends about 3 hours per day at this shop
When does the current lease end?
The current lease has another 3 years and 6 months left
Is there an option of renewal & what period?
5 year lease with option to renew
What is the annual escalation %?
What are the trading hours?
Monday to Friday 7am to 6pm Saturdays 8am to 5pm Closed on Sundays
What is the square meters of the business?
Who is the Owner/Landlord?
to be discussed when copy of lease will be made available for due diligence
Is a copy of the lease available?
for due diligence purposes
Do you require a licence?
no license is required
What lease deposit and/or other surety is required?
2 to 3 months base rental to be negotiated with the landlord
What are the main assets of the business?
dry cleaning machine, washing machines and dryers, sewing machines, shoe repair equipment, counters, rails and other.
Are any items not included in the sale?
All assets as seen on the asset list and shop is included. Except for the 3 carpet cleaning machines which are on loan and where the business make 30% GP
What is their overall condition?
The assets are in good condition
Do any require repairing?
regular maintenance is been done
How have they been valued ?
2nd hand replacement value
Which assets are on lease/HP and with whom?
All assets are unencumbered
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
To be discussed
Very well established business, being in operation for 22 years. Assets worth R1,5m Easy to manage with loyal manager in the shop
A hands on owner could improve the business
Key cutting Boxman
No threats are identified
What is the reason for the sale?
The owner wishes to get married and move back to his birth country
Why is this a good business?
Profitable business with regular customer base.
What is the price plus stock and the net profit?
R1,300,000 including stock of R20,000 Average net profit of R53,500 per month.
Annual Turnover Amount between R 500 thousand and R 6 million