Fully describe the business's activities?
This business specializes in the manufacture of below surface (underground) vehicles to suit customers in the mining sector. This includes the maintenance and support of vehicles in the field. The deal includes the two business properties from which it currently operates. A substantial contract has recently been acquired. Owner prepared to train and assist buyer with technical details, terms to be negotiated.
How long has the business been established?
How long has the owner had the business?
What steps are in place to solve 'load shedding' problems?
Small generator on site.
How does the business operate on a daily basis?
This business specializes in the manufacture (and/or conversion) of below surface (underground) vehicles to suit customers active in the mining sector. Work involves the design and manufacture/conversion of new/used LCV vehicles to suit the various specialist applications. This work process is largely continuous because of general long lead times associated with this type business. Catman also provides maintenance and customer support on vehicles in the field. Customer base includes the local mining houses, mining contractors and private customers. High degree of repeat business.
How are the clients attracted to the business?
Specialist nature of the business results in a high degree of repeat business. Word of mouth marketing and solid track record attracts customers.
What Advertising/Marketing is carried out?
No direct marketing performed.
Does the business have any contract work?
What competition exists?
None in the immediate area supporting local mines.
What are the seasonal trends?
No seasonal trends.
Is the business VAT Registered?
What VAT documentation is on file?
Available on request.
Are there up-to-date Management Accounts available?
Audited financials for 2018 available at due diligence stage.
What Balance Sheet and Income Statements are available?
2018, 2017 and 2016 at due diligence stage.
What percentage of the business is cash/credit?
Most of the receivables are on negotiated payment terms (typical 30-60 day from delivery).
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Focus on the private sector, various requests from customers for workshop related work on private vehicles and 4x4 specialist applications.
Is Seller finance available and for what amount?
Possible, to be negotiated.
What is the payback period?
To be negotiated.
What is the ROI?
Who is the bookkeeper/Accountant?
FC Accountants Feroza Jansen Van Rensburg
What is the total staff complement?
Four permanent workers, contract workers on occasion.
Do any receive special perks or incentives?
To be confirmed.
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
Business is owner run, daily involvement.
When does the current lease end?
Owner is the landlord and these two properties are included in the listing.
What are the trading hours?
07h00 to 17h00 Monday to Friday
What is the square meters of the business?
Two sites: Stand 1 - 1584 meters squared (building sizes to be confirmed). Stand 2 - 1270 meters squared (building size to be confirmed). Sites includes the workshop and office complex and a substantial roofed storage area.
Who is the Owner/Landlord?
Owner is the Landlord.
Do you require a licence?
What are the main assets of the business?
Equipment and machinery - please see attached asset register. Two properties : Stand 1 - 1584 meters squared (building sizes to be confirmed). Stand 2 - 1270 meters squared (building size to be confirmed).
Are any items not included in the sale?
Owner's personal vehicle, to be negotiated/determined.
What is their overall condition?
Used and in good working order.
Do any require repairing?
No, normal ongoing maintenance required.
How have they been valued ?
Awaiting detailed owner valuation, owner estimate provided.
Which assets are on lease/HP and with whom?
All assets settled except HP on personal vehicle.
Will Seller settle or Buyer to take over?
Seller will settle/to be negotiated.
Are they presently insured?
Specialist business with a proven track record conducting business in a niche sector. Positive word of mouth marketing ensures repeat business. Strategic placed business premises in the Eastern Platinum Hub with potential for future expansion.
Scarce skills of artisans required for specialized work.
Significant opportunity by providing key specialized and general vehicle related services to the private sector. Economic benefit of addressing the various BEE opportunities in the general mining sector currently unexplored.
General volatility of the mining sector (if focus remains in this sector only).
What is the reason for the sale?
Owner has had a change of vision and a change in his personal circumstances.
Why is this a good business?
Specialized need business and long established in the industry.
What is the price plus stock and the net profit?
Owner looking for R14mil all inclusive.
Annual Turnover Amount between R 500 thousand and R 6 million