Fully describe the business's activities?
The company provides painting contracting services to business and residential properties within the Umhlanga, Durban and Western Suburbs areas.
How long has the business been established?
While the brand name has been established for over 30 years, the original company was split into a number of smaller companies to cover various areas. This company that operates in all areas of Durban excluding Amanzimtoti has been established for 5 years.
How long has the owner had the business?
The owner has been involved with this company for 5 years.
How does the business operate on a daily basis?
The company receives requests for quotations for various painting assignments on an ongoing basis. Once these contracts are awarded, the materials are purchased and the crew are taken to site to complete the contract.
How are the clients attracted to the business?
While a large percentage of the business comes from repeat business, the company does advertise through their website.
What Advertising/Marketing is carried out?
The company maintains an active website which generates ongoing sales leads.
Does the business have any contract work?
The company has short term contracts with which it is busy. These contracts change on a month to month basis as work is completed and new contracts are awarded. At present the company has sufficient work for the next 6-8 months.
What competition exists?
There are a number of painting contractors of varying proficiency, professionalism and capability.
What are the seasonal trends?
Business is constant throughout the year, with the exception of the December shutdown period where work is stopped on most sites.
Is the business VAT Registered?
The business is Vat registered.
What VAT documentation is on file?
All Vat documentation is available for checking during due diligence stage.
Are there up-to-date Management Accounts available?
Management accounts are well maintained and are available.
What Balance Sheet and Income Statements are available?
Annual Financial Statements for the Year ending February 2017 are available. Annual Financial Statements for the year ending February 2018 will be available shortly.
What percentage of the business is cash/credit?
Business is generally conducted on the basis of deposits, progress payments and completion payments. Very little cash business is done.
What is the age analysis of the debtors book?
The average debtors book is 30 days.
How could the profitability of the business be improved?
The business has grown constantly over the last few years and should continue this growth path in the next few years. There is room to diversify into related building maintenance work but the owner feels that there is sufficient scope to grow this business by concentrating on their core business.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
Staff are maintained at the level to complete the work available. At present this encompasses 2 teams with 12 workers in total. These teams are revised depending on the current workload.
Give a breakdown of staff/ functions/ length of service?
There are 2 supervisors with substantial experience in the industry.
Do any receive special perks or incentives?
No staff receive special perks.
Are they on contract?
All staff have normal employment contracts.
Do any have management potential?
There are no staff currently who have the ability or potential to manage the business.
How involved is the Owner in running the business?
The owner is involved in the business on a full-time basis.
When does the current lease end?
The owner runs the business from home with teams operating on site.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
The main assets of the business are the tools and equipment necessary to complete painting contracts including ladders and scaffold. A bakkie that is used to transport workers to site and to fetch odd materials for contracts is included in the sale.
Are any items not included in the sale?
The owners personal vehicle is not included in the sale.
What is their overall condition?
All assets are in working condition.
Do any require repairing?
No major repairs are required to assets at this stage.
How have they been valued ?
Assets are valued at fair market value.
Which assets are on lease/HP and with whom?
No assets are currently on lease/HP agreements.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
All assets are currently insured.
The strong reputation of this business has resulted in ongoing work that should continue as long as the reputation is maintained. Their experience of larger contracts also qualifies them for contracts that are too big for the bakkie brigade opposition.
The company operates in a sector where barriers to entry are low. The companies reputation and ability to meet customers requirements are paramount to secure future work.
While the companies core focus is painting there are a number of related fields like waterproofing that the company could engage in. The owner has, however, not suffered from a lack of work.
There are no extra - ordinary threats at present.
What is the reason for the sale?
The owner has other work interests and wishes to concentrate his time and efforts in alternative businesses.
Why is this a good business?
The amount of work that the company has at present gives a high security of income going forward as well as room to grow as new work is received. For a buyer who ensures that the quality of workmanship is maintained, this is an ideal opportunity to take this business to the next level.
What is the price plus stock and the net profit?
The price of the business is R600,000 plus the stock that may be present on unfinished contracts at the time of sale. The monthly nett profit averages at R 25,851.
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