Fully describe the business's activities?
A business providing the full spectrum of security system installation - locksmithing, CCTV, gate automation, electrified fencing, access control, safe installation and management, and key cutting. There is a retail shop selling security products. Service excellenceis a priorityand they have established an excellent name in the industry doing work over many years for major retail chains.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business has teams of qualified personnel who perform installation against quotations and who respond to breakdowns.
How are the clients attracted to the business?
Mostly word of mouth and returning "old" clients. An aggresive google add campaign has had a positive effect on the business.
What Advertising/Marketing is carried out?
Little advertising is carried out . Google add campaign and Yellow pages.
Does the business have any contract work?
No written contracts exist however there are extensive long standing verbal agreements in place with corporate clients which have been cemented over the years by excellent service and competitive pricing.
What competition exists?
3 x Key cutters in the same town 2 x Locksmiths in adjacent towns
What are the seasonal trends?
The business is busy throughout the year.
Is the business VAT Registered?
What VAT documentation is on file?
Full documentation will be presented in the due diligence.
Are there up-to-date Management Accounts available?
Yes - to Feb 2018
What Balance Sheet and Income Statements are available?
Yes - to Feb 2018
What percentage of the business is cash/credit?
30% Cash ; 70% On account
What is the age analysis of the debtors book?
An age analysis will be presented in the due diligence. Majority of customers pay in 30 days from staement date
Is Seller finance available and for what amount?
What is the total staff complement?
14 excluding the owner and his wife
Give a breakdown of staff/ functions/ length of service?
A detailed breakdown is on file and will be made available in the due diligence.
Do any receive special perks or incentives?
An ad hoc incentive bonus is in place.
Are they on contract?
All are permanently employed.
Do any have management potential?
2 Staff members are in management positions.
How involved is the Owner in running the business?
The owner is involved 70 % of his time in the business.
When does the current lease end?
3 year lease ending October 2020.
Is there an option of renewal & what period?
Owner has purchased the property so a new lease agreement will be negotiated with him for a period to be agreed. Current lease is R 14 000.00/month
What is the annual escalation %?
What are the trading hours?
Weekdays - 8 am to 5 pm Saturdays - 8 am to 1 pm
What is the square meters of the business?
150 sq metres
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
2 x months
What are the main assets of the business?
Vehicles , tools, shelving/counters
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
All vehicles receive regular servicing
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
No lease agreements
Are they presently insured?
A business that has shown strong growth since being taken over 11 years ago. Strong relationships have been built up with national chains. The business has a widely spread and diverse client base thereby minimising its risk. The business has well experienced and dedicated employees with managers in place. The security industry is presented daily with new opportunities and shows no sign of improving.
Improved advertising and exposure will srengthen the business.
No threats are perceived. The business is well entrenched in the market and competition already exists and is not a threat.
What is the reason for the sale?
Although this is a highly profitable and extremely successful business, the owner would like to diversify into other entrepreneurial opportunities.
Why is this a good business?
A business that has shown strong growth over the last 8 years. Strong relationships exist with major retailers. The business has well experienced staff with management in place. The security industry shows no sign of abating.
What is the price plus stock and the net profit?
R 5 700 000 including stock Stock : R 490 000 Net Profit : R 182 500/month
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