Fully describe the business's activities?
The business offers several cleaning services such as : * Domestic / Carpet Cleaning which are either a once off thorough home cleaning service or a frequent maid cleaning service. The once off cleaning is done by a team who will thoroughly clean the home, the team size varies with the size of the house and the scope of the work. * Commercial Cleaning services for offices, shopping malls, schools, churches and other commercial business premises.
How long has the business been established?
The business has been established since 1986 , thus operating for 32 years
How long has the owner had the business?
The current owner has the business for 15 years , since 2003
How does the business operate on a daily basis?
The Owner handle all the General Management functions of the business and is involved daily in quoting new clients and allocating the staff to the several cleaning sites. The 2 Managers transport the staff at around 6H00 to the different Cleaning sites and the cleaners clean the sites under supervision till around 17H00.
How are the clients attracted to the business?
Clients are attracted to the business due to the long standing reputation , the personal contact of the owner and word of mouth.
What Advertising/Marketing is carried out?
Only a little Advertising is carried out
Does the business have any contract work?
Yes , the business have contract work.
What competition exists?
There's a few local companies and some BEE companies from outside the area.
Is the business VAT Registered?
Yes , the business is VAT registered
What VAT documentation is on file?
None , but VAT documentation will be available during the due diligent
Are there up-to-date Management Accounts available?
No , there's no Management accounts available
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Around 90 % of the business is on a cash or 7 days basis
How could the profitability of the business be improved?
The profitability could be improved by adding additional services (such as garden service) , more advertising and website. BEE status will help when quoting for bigger Companies and Government Enterprises
Is Seller finance available and for what amount?
No Seller finance is available
What is the total staff complement?
Total staff differs between 70 - 80 workers
Give a breakdown of staff/ functions/ length of service?
2 x Managers\Supervisors 70 x Cleaners 1 x Office
Do any receive special perks or incentives?
No , they receive no special incentives
Are they on contract?
Yes , all the staff are on contract
Do any have management potential?
How involved is the Owner in running the business?
The Owner is involved on a full time basis in running the business
When does the current lease end?
No premises are needed , work from home
What are the main assets of the business?
The main assets consist out of 2 x Hyundai Bakkies and several cleaning equipment
Are any items not included in the sale?
No , all items are included in the sale
What is their overall condition?
The Vehicles are in a good condition , but the Cleaning equipment's condition are average
Do any require repairing?
Yes , continual maintenance are required
How have they been valued ?
The Vehicles are valued at Trade-in values and the other Cleaning equipment at owners valuation.
Which assets are on lease/HP and with whom?
The 2 x Hyundai Vehicles are on HP
What are their settlement amounts?
Their Settlement amounts are R 172 700 and R 151 454
Will Seller settle or Buyer to take over?
The Seller will settle
Are they presently insured?
Yes , they are fully insured
Business is very long established with a good reputation and loyal repeat customers. The business also pride itself on the quality and service
At present there are no perceived weaknesses , but Labour legislation and force can be challenging and unpredictable
The business could expand geographically and adding additional services.
The usual threads associated with this kind of business exist , such as B-BBEE levels ,Labour legislation and general economic climate .
What is the reason for the sale?
The owner wishes to retire
Why is this a good business?
The business is profitable and well established with repeat customers with lots of potential to expand .
What is the price plus stock and the net profit?
The Price of the Business is R 1 895 000 with a annual Net profit of R 620 000
Annual Turnover Amount between R 500 thousand and R 6 million