Fully describe the business's activities?
National Below the Line (BTL) promotions and events agency
How long has the business been established?
15 years. Started in 2003
How long has the owner had the business?
How does the business operate on a daily basis?
Owner and regional management overseeing workflow requirements and coordination
How are the clients attracted to the business?
One of the few Promotion agencies around that offer complete promotion and events solutions with a true National Footprint. Have been in the industry they have developed a great reputation and even better relationships. With added fully equipped online promotion solution program.
What Advertising/Marketing is carried out?
Constant advertising on all of the Social Media Platforms. Radio Adâs . Sponsor Golf Days and Various events where branding is key, CRM client management and e mailers at least twice a month.
Does the business have any contract work?
Yes extensive with key account stake holders
What competition exists?
Regional competitors exist but very few with a national footprint that can deliver multiple launches of brand across the country at the same time, hence why company has very key markets with national brands and blue chip clients.
What are the seasonal trends?
Sept â Dec peak Mid Jan â Mid May peak Mid May â Mid Aug are breakeven months (Winter) But this varies
Is the business VAT Registered?
What VAT documentation is on file?
All available on request
Are there up-to-date Management Accounts available?
Yes all periods
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Pre payments and facilities offered to certain qualified clients
What is the age analysis of the debtors book?
Current Debtors are updated daily and available at current 30/60/90 & 120 day where applicable
How could the profitability of the business be improved?
Should law change that ATL marketing on Alcohol is banned as per the Tobacco industry business would triple. Reduce permanent staffing total Move to smaller premises with lower Rentals Increase Clientele base
What is the total staff complement?
28 permanent staff and fluctuating contract staff on demand
Give a breakdown of staff/ functions/ length of service?
Complete list available on request by region CPT / DBN / JHB
Do any receive special perks or incentives?
Cell phone and petrol allowances in course of business activities
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
Cape Town June 2019 JHB May 2019 DBN May 2020 All lease agreements are available on request
Is there an option of renewal & what period?
What is the annual escalation %?
8% to 10%
What are the trading hours?
09h00 - 16h00 and Flexi Hours contact dependent
Is a copy of the lease available?
What lease deposit and/or other surety is required?
2 months per lease agreement
What are the main assets of the business?
Exhibition Equipment Vehicles
Are any items not included in the sale?
Owners Private Vehicle
What is their overall condition?
Do any require repairing?
How have they been valued ?
Book Value to Balance Sheet
Specialist BTL (Below the Line) marketing, activation and events agency, with National footprint and "blue chip" clientele base. Market leader in delivering a complete campaign solution with tablet run promotional mechanics for brand activation's.
BTL Marketing is considered more expense than direct advertising methods
Tobacco industry when regulations change
Cut backs on marketing spend form clientele base
What is the reason for the sale?
Owner is considering emigrating
Why is this a good business?
Highly integrated business with strong management and IT protocols in place. Long term contracts with household name brands as a preferred supplier for campaigns with high end results reporting on outcomes.
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Annual Turnover Amount between R 500 thousand and R 6 million