Fully describe the business's activities?
This is a Car Hire business, supplying vehicles to inbound foreign travelers and S.A residents. The business operates its own fleet as well as brokers bookings to several bigger car hire companies for commission.
How long has the business been established?
The business was established in 1995.
How long has the owner had the business?
How does the business operate on a daily basis?
Office opens at 07:30 am to 20:00 pm with reduced hours on the weekend. Supply of vehicles to walk in clients and book cars via email for those visiting the website.
How are the clients attracted to the business?
Word of mouth and loyal client base. Very well established in the market with many return clients. The business has an extensive network of hotels, tour operators, guest houses, backpackers and extensive internet activity generating leads.
What Advertising/Marketing is carried out?
Website as well as visiting Guest Houses, B&B's and Backpackers. Growing market of local clients
Does the business have any contract work?
No, the business does not have any contract work.
What competition exists?
The company is one of the major independent car hire companies in SA with a growing share of commission based income. Having been around for 20 years it competes with the big brands through pricing, high personal service level and flexibility. Very profitable in its niche market.
What are the seasonal trends?
Busy from July - April. Prepayments from overseas to secure bookings help with cash flow during the winter months.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
All VAT documentation is on file.
Are there up-to-date Management Accounts available?
Trial Balances are available up to including February 2018
What Balance Sheet and Income Statements are available?
Balance sheet and income statements are available to serious buyer up to AFS Feb 2017.
What percentage of the business is cash/credit?
All rentals paid in advanced, no debtors.
How could the profitability of the business be improved?
Strong internet marketing (Google adwords), tune the business model, be more aggressive in the local market.
Is Seller finance available and for what amount?
No, seller finance is not available.
What is the total staff complement?
15 and general 3 internal.
Give a breakdown of staff/ functions/ length of service?
3x Garage staff (up to 12 years employed) 3x Operator staff (up to 2 years employed) 6x Rental Agents (up to 10 years employed) incl. a German speaking agent.
Do any receive special perks or incentives?
Annual bonus at discretion of management, some sales incentives and random gifts at times.
Are they on contract?
Employees are permanent. Usually some interns.
Do any have management potential?
Yes, some have management potential.
How involved is the Owner in running the business?
Remaining partner runs the operation. One seller can be replaced by a bookkeeper (provision is made for a monthly salary of R 15,000), the other Seller is mainly responsible for marketing.
When does the current lease end?
Premises are owned by one seller. A new lease agreement can be negotiated.
Is there an option of renewal & what period?
To be negotiated
What is the annual escalation %?
To be negotiated
What are the trading hours?
Monday to Friday 7:30 am to 20:00 pm Saturday 8:00 am - 4:00 pm Sunday 8:00 am - 1:00 pm
What is the square meters of the business?
Is a copy of the lease available?
Yes, a copy of the lease is available.
Do you require a licence?
No licence required.
What lease deposit and/or other surety is required?
What are the main assets of the business?
About 70 rental cars, otherwise mainly office furniture and equipent
Are any items not included in the sale?
1x Landrover 1x Ford Ranger.
What is their overall condition?
Do any require repairing?
No repairing required.
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
Will Seller settle or Buyer to take over?
Buyer to take over.
Are copies of agreements available?
Yes, copies of all the agreement are available.
Are they presently insured?
Yes they are insured.
Very well established company / brand, with a loyal overseas client base and a growing SA clientele. Good business model with a growing share of revenue commission based (through the major car rental companies in SA). Affiliated offices nationwide and in neighboring countries. Low overhead structure. Good service delivery as evidenced by positive Google and Facebook reviews.
Overseas share of the business is quite seasonal.
Enormous potential to grow the business, especially through internet marketing and by growing the referral base. Growing overseas tourism into SA, especially into CT. A special opportunity lies in the very high demand of camper vans.
Market is dominated by big international brands.
What is the reason for the sale?
Two selling partners have been in the business for over 20 years and need a change.
Why is this a good business?
Well established business with a huge number of satisfied regular clients overseas and locally. Very profitable with low overheads. Prepayments help cash flow in the winter months. With the operational director staying on as shareholder the business will keep on running smoothly. Many opportunities to grow the business.
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