Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
All documentation will be made available to qualified Buyers at a due diligence stage.
Are there up-to-date Management Accounts available?
Up to date Management Accounts will be made available to qualified Buyers. For the purposes of this report the Management Accounts were utilised for the period March 2017 - Feb 2018. The Net Profit was calculated after adding back depreciation for the year of R 122,264. The Owner does not take a Salary as he is not operative in the business.
What Balance Sheet and Income Statements are available?
At present the store is part of one (Pty) Ltd. company together with the Head Office and thus the Financials are integrated . Separate Management Accounts are however available.
What percentage of the business is cash/credit?
The business is mostly cash/Cr Cards. The new owner will be encouraged to open accounts for larger customers.
How could the profitability of the business be improved?
By direct aggressive marketing to larger customers. The store will benefit from the purchasing power of the Head Office which is part of a large Independent Hardware Stores buying group and receives very attractive rebates on purchases.
Is Seller finance available and for what amount?
The Seller will consider allowing the purchaser to pay for the stock over a three month period.
What is the payback period?
The Pay Back period on the purchase price of R 3.9 million excluding stock is 42 months.
What is the ROI?
The ROI on the Purchase Price exclusing stock is 28.5%.
What Royalties and Advertising fees will be charged ?
There will be a Royalty Fee of 3% of Turnover. This will only kick in after the first few months of operation.