Fully describe the business's activities?
The business is an Event and Marquee Hiring business. They assist the client with an full service including building plan submission, erecting, setting up, cleaning and breaking down any size of requirement for any occasion. The business is well known in the industry and work through event coordinators and planners. They have all the necessary "stock" to host any event from the small and personal to the extravagant and over the top events.
How long has the business been established?
The business has been in operation since 1997.
How long has the owner had the business?
The current owner bought the business in 2012
How does the business operate on a daily basis?
Most of the work is enquiries via the business website but there are some walk in customers. The business will send out a representative to asses the requirements of the client and quote accordingly. Once the quote is excepted the planning will start. Dates are confirmed and a team is send out to erect the necessary equipment as agreed. Once and event is finished the crew come in again to disassemble everything and take back to the factory. The walking clients are mainly people looking for cutlery and crockery.
How are the clients attracted to the business?
The business make use of online marketing to attract clients. It is also well established in the market and has a large client base to call on.
What Advertising/Marketing is carried out?
Main focus for marketing and advertising has been online presence.
Does the business have any contract work?
The business does not have any contract work but has regular customers. This is definitely and opportunity in the business as well to tie in contracts to coordinate and facilitate events for customers on a regular business.
What competition exists?
There is lots of competition in the market but very little direct competition as companies normally does certain aspects of an event and not everything as what this business can do.
What are the seasonal trends?
Middle to end of year are extremely busy periods in the business January to May are normally quite periods.
Is the business VAT Registered?
The business is VAT registered and has to be for the clientele it is working with
What VAT documentation is on file?
Vat Returns will be available
Are there up-to-date Management Accounts available?
We have management accounts up to Feb 2018 available
What Balance Sheet and Income Statements are available?
The latest Financial Statements are Feb 2017
What percentage of the business is cash/credit?
There is a decent size Debtors book but a lot of clients pay quickly.
What is the age analysis of the debtors book?
Most clients are on 30 days from statement but one of two are a bit longer.
How could the profitability of the business be improved?
Offering additional service like coordinating will increase profits.
Is Seller finance available and for what amount?
The seller is not open to any structured purchase,
What is the total staff complement?
There are a total of 15 people working in the business with casuals being used from time to time.
Give a breakdown of staff/ functions/ length of service?
4 Drivers 2 Sales people 9 Laborers Casuals used from time to time.
Do any receive special perks or incentives?
The sales manager, sales executive and operations manager participate in an incentive scheme through which they can earn an additional 50% of a cheque over a year
Are they on contract?
All the permanent workers are on contract.
Do any have management potential?
One of the sales people shows potential to becoming a manager with some training and assistance
How involved is the Owner in running the business?
The Owner is currently involved on a daily basis with most aspects of the business. He does however feel someone with a personality better suited to the industry will increase sales.
When does the current lease end?
The current lease ends in Aug 2018
Is there an option of renewal & what period?
There will be an option available to renew the lease but the new owner can negotiate it with the Landlord.
What is the annual escalation %?
The escalation calculates to about 7% per year.
What are the trading hours?
Monday to Friday 08h00 to 16h30 Saturday 08h00 to 12h00 This is depended on the owner and orders that are on book.
What is the square meters of the business?
The business has about 1000sqm under roof and a yard which can be used to wash the canvas tents and other equipment
Is a copy of the lease available?
There is a copy of the lease available
Do you require a licence?
No License is required to operate the business Know-how however is needed due to the nature of the business and safety risks it has.
What lease deposit and/or other surety is required?
There is one month's deposit required by the landlord.
What are the main assets of the business?
There is a huge number of things that make out the main assets of the business including vehicles, tents, structures and equipment as well as crockery and cutlery.
Are any items not included in the sale?
Everything on the asset list forms part of the sale.
What is their overall condition?
The assets are in very good condition and in great working order.
Do any require repairing?
NO, the seller will ensure everything will be in good working order upon transfer of the business.
How have they been valued ?
We have not estimated a correct current value but the replacement value equates to +/-R12.5 Mil.
Which assets are on lease/HP and with whom?
There is a lease agreement on a copier but the seller will settle it.
Are they presently insured?
All aspects of the business is insured.
The business is well established There is a great amount of stock to assist any client with their needs. The profit margins are very high with assist in doing certain jobs other people will not take on.
The business BBEEE status is a bit low which means they might be losing on some deals.
The BBEE compliance would increase the changes of getting larger tenders at State level. Adding additional services like events coordination will also increase profits. The national elections coming up is a huge opportunity for the business.
There are no threats to the business
What is the reason for the sale?
The seller wants to get back into the corporate market, he really feels that he has reached a ceiling with the business and due to his personality will not be able to take the business to the next level which now requires to do.
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