Fully describe the business's activities?
The business supplies and repairs all types of pumps, motors and auxiliary equipment for the mining, energy and municipal industries. They are also the regional distributor in Mpumalanga for a well known manufacturer of specialised submersible pumps.
How long has the business been established?
The business was established in 2005.
How long has the owner had the business?
The owner started the business 13 years ago.
How does the business operate on a daily basis?
Repair services are carried out at the workshop after testing and diagnostics by competent and experienced staff. The company's quality assurance processes are approved by the South African Bureau of Standards as part of the Flameproof Repairers permit and are fully documented based on ISO 9000 / 2000 systems.
How are the clients attracted to the business?
The business is a preferred supplier of and has appropriate vendor codes with a number of corporate clients who require specialised services.
What Advertising/Marketing is carried out?
The business does have a website to market its services, however, most of the new business is sourced through the sales team.
Does the business have any contract work?
The business is registered as a preferred supplier with appropriate vendor numbers. Clients consists mainly of large corporates in the mining and energy industries. Current clients include: Eskom, Exxaro, Anglo American, Glencore amongst others.
What competition exists?
There are only two or three other companies competing within the immediate vicinity.
What are the seasonal trends?
Business picks up substantially during the rainy season.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The business uses Pastel Accounting System and employs a full time bookkeeper operating from the premises and taking care of all VAT returns, management accounts as well as payroll administration. The latest management accounts will be available to approved buyers.
What Balance Sheet and Income Statements are available?
We have on file, the Annual Financial Statements for the year ended February 2018.
What percentage of the business is cash/credit?
Approximately 20 - 30% of income is generated in cash.
What is the age analysis of the debtors book?
Most clients settle 30 days after invoice.
How could the profitability of the business be improved?
The business currently concentrates mainly on repairs. Generating more sales of pumps would dramatically improve the profitability.
Is Seller finance available and for what amount?
What is the total staff complement?
The business employs 13 staff members.
Give a breakdown of staff/ functions/ length of service?
1 workshop manager 1 Supervisor 2 Fitters 1 Driver 4 General workers 2 Sales representative 1 Bookkeeper 1 Receptionist
Are they on contract?
How involved is the Owner in running the business?
The owner is fully involved in the day to day operations of the business.
What are the trading hours?
The business operates from 7am to 4:30pm on Mon to Thu and from 7am to 2pm on Fri.
Who is the Owner/Landlord?
The property is owned by the seller and purchase of the property is optional. A valuation by an independent property valuer is available to approved buyers.
What are the main assets of the business?
Plant, equipment, machinery and a number of vehicles.
Are any items not included in the sale?
A few personal items belonging to the seller.
What is their overall condition?
The assets are in good condition and have been regularly serviced and maintained.
How have they been valued ?
The assets have been valued by the owner at second hand value.
Which assets are on lease/HP and with whom?
All assets are fully paid for and unencumbered.
Are they presently insured?
Most of the assets are insured at replacement value.
This is an established, well organised business with an experienced team of staff members. Well structured processes are in place to ensure the highest quality services. Registered vendor with mines and other heavy industrial companies. Level 2 BBBEE.
Lack of proper marketing and advertising.
There are numerous opportunities for expansion into various industries.
What is the reason for the sale?
The owner would like to retire.
Why is this a good business?
This is a well established business with very little competition.
What is the price plus stock and the net profit?
The asking price is R6 000 000 including stock. The business generates a net monthly profit of around R 185 000.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million