Fully describe the business's activities?
Long established dynamic printing and signage business supplying the local mining industry and retail customers. Business is on a well located and well maintained property (Also available for sale )and is exceptionally well equipped. The passion for the printing industry is obvious and easy to experience with their motto being "Dynamic Ideas Start Here". Services includes (but not limited to) : NCR books, stickers, flyers, brochures, catalogues, folders, company profiles, canvas mounting, photo &case bound books, company stamps, diaries - calendars & desk pads, Signage safety signs & road signs, banner & flags, correx boards, laser cutting, doming, light boxes, poster & photo's and menus.
How long has the business been established?
Started in 2009.
How long has the owner had the business?
Owner started the business.
How does the business operate on a daily basis?
The production manager is responsible for the sales process which includes quote, invoice, manufacture and collecting aspects of the business. A dedicated designer is on staff who is responsible to assist clients with specific design requirements. Manufacturing is performed onsite in the well equipped production area, and an installation team is available for off-site work. The owner is involved in the financial management of the business and generally assist the production manager with acquisition of the raw materials and stock items required for the day to day operation.
How are the clients attracted to the business?
Being an established business, with a very good reputation and excellent customer service, word of mouth marketing forms a big part of the business strategy. With the business's well equipped production facility and capability a reputation of meeting most printing and signage requirements results in local business support vs. looking to the bigger economic centers to meet their (customers) requirements.
What Advertising/Marketing is carried out?
In addition to the exceptional focus on customer service and customer experience the business uses social media, web based marketing, traditional print adds and strategically placed sign boards in and around the business primary market area.
Does the business have any contract work?
Yes, substantial contract work with a mining house.
What competition exists?
There are several smaller print and signage businesses located in the primary market area.
What are the seasonal trends?
Slightly less activity noticed during the traditional December holiday period.
Is the business VAT Registered?
What VAT documentation is on file?
VAT filings to be made available during due diligence phase.
Are there up-to-date Management Accounts available?
Yes, to be made available during due diligence phase.
What Balance Sheet and Income Statements are available?
Audited results for 2017, 2018 available only during due diligence phase.
What percentage of the business is cash/credit?
30% cash and 70% credit business.
What is the age analysis of the debtors book?
Generally 30 days account , some mining houses on 60-90 days.
How could the profitability of the business be improved?
Improvement of the company's BBBEE rating will open new market segments in the surrounding local municipalities (all government institutions) currently under explored/utilized.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Most have been employed for more than five years, includes the following: Production manager - 5 years Designer - 3 years Designers and operators (manufacturing) - 1 year 3 xGeneral assistants and driver - average 5 years 2 x Designer & Laser operator - 1 year
Do any receive special perks or incentives?
Are they on contract?
Standard employee contracts.
Do any have management potential?
How involved is the Owner in running the business?
The owner is involved in the financial management of the business but not on a daily bases. This function currently is successfully performed remotely as the owner is residing in a different area.
When does the current lease end?
No lease, currently the business owns the property and if the business is sold separately from the property a lease agreement will be drawn up . The property is not included in the sale and was recently valuated at R 3 950 000 and is selling for R 2.95 million
Is there an option of renewal & what period?
To be negotiated if only the business is bought
What are the trading hours?
Trading Monday to Friday, 08h00 - 17h00
What is the square meters of the business?
Office and production area 350 m2
Who is the Owner/Landlord?
The Owner owns the property.
Do you require a licence?
No license required for the printing industry.
Describe the property
The business is located on the main street and is easy accessible . The erf size is 1300 m2 The office and production area is located in a well designed area of 350 m2 On the same property is a well designed 4 bedroom house with 3 bathrooms / TV lounge & Dining room / open plan kitchen/ build in braai & Bar /swimming pool & entertainment area to a total of 330 m2 The property is separately available for sale The rental potential of the property is as follow : Office area @ R 13000 /m House @ R 8000 / m
What are the main assets of the business?
Various sophisticated printing equipment, office furniture, shop fitting and computer hardware as needed in this trade . There is a full asset list on file available for viewing by a qualified serious buyer Equipment valued by owner at about R 3.5 million LDV vehicle (fairly new model year).
Are any items not included in the sale?
Business Building of 350 squares Residential Building of 330 squares Erf in the main street of 1300 squares Property valued at R 3.95 million ( separately selling at R 2.95 million )
What is their overall condition?
Equipment is in good working condition, being used daily.
Do any require repairing?
No, a services schedule is kept
How have they been valued ?
Which assets are on lease/HP and with whom?
Certain printers on lease/hp, to be discussed during due diligence phase.
Will Seller settle or Buyer to take over?
To be negotiated during due diligence.
Are copies of agreements available?
Yes, on request and during due diligence phase.
Are they presently insured?
Yes, all comprehensively insured.
Established business being able to deliver on an extensive range of printing and signage services. Excellent customer service. Good business location with onsite manufacturing capabilities.
Currently with the sellers lack of presence in the business his expertise and knowledge in the offsite sector of the business has been neglected The business could benefit with a new owner who has some expertise to add value here .
Increasing of BBBEEE rating leads to new possible market segments currently not serviced by this business. The equipment is selling at a fair market related value - a good opportunity to enter this established market .
General volatility of the mining industry and general market at this point in time.
What is the reason for the sale?
The owner has relocated to the coast and wants to focus on new business developments in the Southern Cape
Why is this a good business?
Established business being able to perform and deliver on most printing and signage requirements resulting in very satisfied customers. Exceptional customer service and exciting business culture. The assets and property is valued at a fair market related price The property ( if bought separately ) has a good income potential
What is the price plus stock and the net profit?
Selling at R 4 610 000 Incl Equipment - R 3 537 000 est Incl Stock - R 100 000 est Incl Vehicle - R 171 000 est Net Profit - R 53000 / month Property @ R 3 950 000 with a rental income of R 21000 /m is sold separately
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