Sectors / Category

Annual turnover

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  • Mandate: 32095
  • Added: 23 Jul 2018
  • AFS
  • 836

Hydraulic Services for industrial and motor applications

KwaZulu-Natal, Durban
836
Mandate 32095
Added 23 Jul 2018
R 7,450,000* ZAR
Stock: R 950,000
Assets: R 0
R 179,239 ZAR
Ian Reich
(PRINCIPAL)
Aldes Supreme
KwaZulu-Natal
KwaZulu-Natal
Summary

International Franchise in KZN. Services clients in the trucking and Industrial environment where repairs and maintenance contracts are utilized for 24 hour services.

Hydraulic Services for industrial and motor applications
SELLING PRICE AFS
R 7,450,000* ZAR
Stock: R950,000
Assets: R0
R 179,239 ZAR
Summary

International Franchise in KZN. Services clients in the trucking and Industrial environment where repairs and maintenance contracts are utilized for 24 hour services.

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Fully describe the business's activities?
The business does on-site repairs to hydraulic systems largely on trucks. There are numerous industrial clients that require services to fork lift and other hydraulic applications.

How long has the business been established?
The business is an international franchise and the KZN franchise has been open for 14 years.

How long has the owner had the business?
The owner has had the business for 9 years.

How does the business operate on a daily basis?
Customers phone in a request for repairs and a tam is dispatched to the site or vehicle needing the repairs. The repair work is either done on site or bought back to the workshop.

How are the clients attracted to the business?
The company has a reputation for fast and efficient service which results in repeat business from existing clients and clients recommending the company to new clients. The service vans also contain highly visible advertising.

What Advertising/Marketing is carried out?
Very little advertising is carried out with the exception of the group website which does attract some clients.

Does the business have any contract work?
The business does not have contract work but rather a large clientele who work with the company on a regular basis.

What competition exists?
There are 2 other competitors but they are much smaller and do not offer the same levels of service.

What are the seasonal trends?
The business is continuous throughout the year with the exception of the December shutdown period when demand drops and only a skeleton staff is required to maintain service levels.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All VAT documentation is available.

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Feb 2018 Accounts are available with Feb 19 accounts due in the next few months. There are management accounts through yo December 2018 with the mandating broker.

What percentage of the business is cash/credit?
The vast majority of business is paid by EFT with only a minor amount of work paid for with cash.

How could the profitability of the business be improved?
Very little effort is expended in looking for new clients at present and an owner who wishes to expand the business could increase sales by carrying out more marketing activities and approaching large transport groups to secure more business. A BEE owner could also tap into additional markets that are not currently exploited.

Is Seller finance available and for what amount?
No seller finance is available.

What is the payback period?
30 MONTHS

What is the ROI?
30%

What is the total staff complement?
There are 13 permanent employees and a part time cleaner.

Give a breakdown of staff/ functions/ length of service?
There are : 6 Technicians (3@9yrs, 1@5yrs, 2@1yr) 4 Admin/Stores/Driver (2@9yrs, 1@3yrs, 1@1yr) 1 Cylinder Workshop technician (yr) Mechanic (9yr)

Do any receive special perks or incentives?
The technicians are offered and incentive to encourage sales.

Are they on contract?
All are on permanent employment contracts with the exception of the part-time cleaner.

Do any have management potential?
The admin manager is very competent and good at handling staff.

How involved is the Owner in running the business?
Th owner has been managing the business on a full-time basis.

When does the current lease end?
End of July 2020

Is there an option of renewal & what period?
There is an option to renew for a further 3-4 years.

What is the annual escalation %?
8%

What are the trading hours?
The workshop operates from 7-5 Monday to Friday but the mobile services are 24 hours.

What is the square meters of the business?
The workshop is 290 square meters.

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
A R43000 Surety is required.

What are the main assets of the business?
The main assets of the business are the 5 vehicles that are kitted out with extensive tooling for roadside repairs. In addition the workshop has tooling and machinery as per the asset list.

Are any items not included in the sale?
The owners vehicle, computer and personal effects are excluded from the sale.

What is their overall condition?
The overall condition of the assets is good and they are well maintained.

Do any require repairing?
Other than ongoing maintenance, none require repairs.

How have they been valued ?
The assets have been valued at market value.

Which assets are on lease/HP and with whom?
3 Vehicles are under HP agreements.

What are their settlement amounts?
Bakkie - R180,000 Quantums - R157,330 and R17,000

Will Seller settle or Buyer to take over?
The purchase of the vehicles is part of the normal operating cost of the business and the buyer will take over these agreements.

Are copies of agreements available?
Yes

Are they presently insured?
Yes

Strengths?
The National Franchise has a strong brand that has a good reputation. This is a source of endless work as long distance haulers who work with the franchise in other provinces naturally call the Kzn branch when their vehicles breakdown in Kzn.

Weaknesses?
The company does not work with any companies requiring BEE status.

Opportunities?
While the company is based in Durban but has opportunities to expand into Richards Bay.

Threats?
The only threat to the company would come from the existing opposition if they increased their service to the customers. This is however challenging on their smaller turnovers.

What is the reason for the sale?
The owner wishes to retire.

Why is this a good business?
Belonging to an International brand has given this business a strong customer base with opportunities to expand making this a cash positive business.

What is the price plus stock and the net profit?
Priced at R7,500,000 with a Net Profit of over R2,000,000 per annum

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FRANCHISE DETAILS

Aldes Supreme

2 members
19 active mandates
KwaZulu-Natal
19 Village Brittany, Le Domaine Estate
3626

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