Fully describe the business's activities?
Retail computer store supplying all hardware and with workshop for repairs
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Located in a shopping centre, the store opens at 9 am and assists walk in customers and telephone emquiries
How are the clients attracted to the business?
Located at the main entrance to a shopping centre, it is highly visible and has been in business for many years, so customers know where to find them. There is also a Website and Facebook page.
What Advertising/Marketing is carried out?
Facebook marketing and print media.
Does the business have any contract work?
What competition exists?
None locally. Only shop in the area.
What are the seasonal trends?
Steady throughout but quieter over December
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Audited accounts to December 2016 and management accounts to Dec 2017
What percentage of the business is cash/credit?
All cash or card, no accounts
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Implement on site call outs to repair office or home computers.
Is Seller finance available and for what amount?
What is the payback period?
What is the ROI?
Approx 65 %
What is the total staff complement?
3 excluding the owners
Give a breakdown of staff/ functions/ length of service?
1 salesman 2 technicians
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
Yes one has management potential
How involved is the Owner in running the business?
Owner is at the shop every day and wife helps with admin.
When does the current lease end?
Leas has expired and is now being negotiated for new lease
Is there an option of renewal & what period?
Yes for 3 years
What is the annual escalation %?
What are the trading hours?
Mon to Fri 9 am to 5.30 pm Sat 9 am to 1,30 pm
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
Deposit was R16000
What are the main assets of the business?
Motor vehicle for deliveries
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Well established for over 13 years. Only computer retailer in the area. Well run and profitable business, well priced
None perceived, subject to usual economic challenges
Offer outside service and repairs. Other service options could be considered.
What is the reason for the sale?
Relocation to the coast
Why is this a good business?
Well established offering good ROI and excellent reputation
What is the price plus stock and the net profit?
Price is R800,000 plus stock at cost R450,000 with adjusted Net Profit of R642,000. This is priced as a going concern, Zero rated for VAT to a registered VAT vendor
Annual Turnover Amount between R 500 thousand and R 6 million