Fully describe the business's activities?
Retail stationery and packaging material supply franchise
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Customers either call and collect orders, or place orders for delivery daily.
How are the clients attracted to the business?
Part of the business is a well known franchise, otherwise by word of mouth.
What Advertising/Marketing is carried out?
Company website and Google
Does the business have any contract work?
What competition exists?
Big packaging wholesalers and similar stationery stores, but none close by
What are the seasonal trends?
December and April usually quieter due to holidays, otherwise fairly constant
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
Packaging mostly COD, stationery mostly on credit account
What is the age analysis of the debtors book?
57 % current, 31 % 30 days, 12% 60 days
How could the profitability of the business be improved?
For stationery sales , get rep on the road after "back to school" business. Packaging is constantly growing.
Is Seller finance available and for what amount?
What is the total staff complement?
Besides owner and wife, only a driver employed
Give a breakdown of staff/ functions/ length of service?
Driver since 2010
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
Is there an option of renewal & what period?
Can negotiate new three year lease
What is the annual escalation %?
What are the trading hours?
Weekdays 8 am to 4 pm. Saturdays 9 am to noon.
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?
To be discussed with landlord
What are the main assets of the business?
Full asset list available, includes Nissan 1400 LDV
Are any items not included in the sale?
What is their overall condition?
All good and in working condition
Do any require repairing?
How have they been valued ?
Estimated market value
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?
Strong franchise brand, well established
Stationery business is very competitive and weak economy
Actively promote stationery sales and chase "back to school" orders
What is the reason for the sale?
Seller is going to join family in Australia
Why is this a good business?
Business has proved to be resilient since 2005 and has improved with the addition of the packaging franchise.
What is the price plus stock and the net profit?
Price is R540,000 including stock of R130,000 at cost or less.
Annual Turnover Amount between R 500 thousand and R 6 million