Fully describe the business's activities?
The business provides quality guttering to the building industry.
How long has the business been established?
The business is well established and been active in the area for 10 years now.
How long has the owner had the business?
How does the business operate on a daily basis?
In the building industry we have had continuous work every week day. Within our 10 yr operating time we have only had 2 days of scheduled no work.
How are the clients attracted to the business?
Our visual marketing has drawn in new potential clients, but our biggest new business attraction is word of mouth from our existing clients who notice our work practise. We also work closely with developers in the building industry and keep good relationships with them.
What Advertising/Marketing is carried out?
Very little has been spent on advertising in hr 10 years the business has been operating, our only real advertising has been our creative vehicle signage, work gear, presence, as well as a hands on and hardworking business communication and ethic.
Does the business have any contract work?
Mainly short term contracts in comparison to others in the building industry due to the speed of the work etc. With long standing working relationships with many prominent developers and corporate businesses in KZN the business benefits from constant repeat business
What competition exists?
Not much competition - some smaller gutter business's have opened and closed around us and KZN, however the business has maintain excellent relationships to keep relevant.
What are the seasonal trends?
September to December tends to be the business, there is a huge boom in the industry before the Christmas period, Tourists/Holiday Investors push this trend. January February are our quiet months, due to the Builders shut down period, but we focus on local, domestic installations to keep us busy at these times.
Is the business VAT Registered?
Yes, since 2007
What VAT documentation is on file?
VAT returns can be made available to qualified buyers.
Are there up-to-date Management Accounts available?
These are available to qualified buyers.
What Balance Sheet and Income Statements are available?
The business has used Pastel Express Accounting system since 2008. Any and all management accounts are available.
What percentage of the business is cash/credit?
No credit accounts, its 50% Deposit if not 100% full payment before work is completed. With the remaining amount due after completion.
How could the profitability of the business be improved?
The business currently runs a single team of 6, which comprises of a Driver and various Gutter Installers / handlers. Additional teams would increase Turn Over with less the same overhead expenses. A commission based outbound sales team would also considerably increase sales.
Is Seller finance available and for what amount?
No Seller finance is not avialable
What is the total staff complement?
The business employs 7 staff members, who all have various vital tasks that complete the Gutter Brigade team.
Give a breakdown of staff/ functions/ length of service?
Driver / Foreman: 10 Yrs, Roll Former, Roof Applications Specialist: 8 Yrs, Roll Former Roof Applications Specialist: 8 Yrs, Roll Former Assistant: 6 Yrs, Down Pipe Installations Assistant: 1 Yr Assistant: 1 Yr Assistant: 6 months
Do any receive special perks or incentives?
The Foreman, receives commission for work that he attracts and completes on his own initiative. We have standard annual increases, annual leave pay and bonus's as well.
Are they on contract?
All staff are on full time contracts, SEESA consultants manage all Labour related queries or issues, and maintain all staff contracts. 4 Years ago staff elected to remove themselves from any and all Unions that enquired with them, but they have been working efficiently together since the start of their contracts. The business is very very pleased with the staff and have an efficient team working within the business.
Do any have management potential?
None have the skills for management potential, they are trained to fit and install Gutters
How involved is the Owner in running the business?
The owner manages the team and materials needed. The owners wife handles the Admin and the installation calendar. The owner is the only contact with clients and manages all client and supplier relationships.
When does the current lease end?
The current lease has ended and rental is on a month to month basis now.
Is there an option of renewal & what period?
Yes - A new lease will need to be negotiated
What is the annual escalation %?
What are the trading hours?
Any Time, the Business Estate is monitored 24/7
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What are the main assets of the business?
A Domestic Gutter Mounding Machine, A Domestic/Industrial/Combo Machine, 2 large Trailers, 1 Toyota Single Cab, 1 Toyota Double Cab, Quality Portable Electric & Hand Tools for 7 Employees, Quality Ladders and Safety Gear, PVC Manufacturing Equipment.
Are any items not included in the sale?
Various Computers and Office Automation Equipment, the Owners personal 2015 Toyota Fortuna as well as a refuse Trailer.
What is their overall condition?
The Larger Assets are all over 5 years old, but are well serviced and maintained. The hand and power tools vary in age from new to a few years old, and are also maintained and serviced. All our Ladders and safety gear are regulation safety spec.
Do any require repairing?
The 2005 Double Cab has some electrical issues, but it is in running condition.
How have they been valued ?
Current market value
Which assets are on lease/HP and with whom?
None are currently on HP
Are they presently insured?
Yes fully insured
What is the reason for the sale?
The owner plans to immigrate.
Why is this a good business?
This business is well recognised in the industry, with highly efficient and well trained staff. This business has a proven track record and has been profitable since it's inception 11 years ago
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Annual Turnover Amount between R 500 thousand and R 6 million