Fully describe the business's activities?
This business consists of two motor dealerships 1. New car dealership with accessory fitment centre and sales, service and repairs to all makes of cars 2. Used vehicle dealership
How long has the business been established?
Established in 2008
How long has the owner had the business?
How does the business operate on a daily basis?
Used vehicle dealership with a service and repair centre as well as new car franchise with accessory fitment centre
How are the clients attracted to the business?
Both dealerships have websites and social media is utilized
What Advertising/Marketing is carried out?
Each dealership has a website and social media. Also face to face displays
Does the business have any contract work?
No, but the fitment centre is used by some of the major dealerships in the area
What competition exists?
Several other motor dealers in the area
What are the seasonal trends?
Relatively constant throughout the year but does pick up between September and January
Is the business VAT Registered?
What VAT documentation is on file?
All vat documents are available
Are there up-to-date Management Accounts available?
Yes, very detailed accounts are available
What Balance Sheet and Income Statements are available?
Full set of monthly reports as well as year-to-date
What percentage of the business is cash/credit?
Debtors are less than 5% of total sales
How could the profitability of the business be improved?
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Pre-Owned Sales Manager (4+ years) New Vehicle Sales Manager (3 years) After Sales & Fitment Manager (2 yrs) Service Manager (4+ yrs) Financial Manager (9+ yrs) 5 Salesmen, 2 Drivers, 1 Technician & 4 Apprentices, 4 Cleaners, 5 Administrative staff & 1 F&I
Do any receive special perks or incentives?
Normal perks, use of car, etc.
Are they on contract?
All are permanent employees
Do any have management potential?
Very competent and experienced managers are in place
How involved is the Owner in running the business?
Day-to-day running of the business is handled by the management team. Owner keeps eye on financials
When does the current lease end?
28 February 2019
Is there an option of renewal & what period?
Yes, a three year lease renewable option
What is the annual escalation %?
Annual escalation is CPI
What are the trading hours?
Mon to Fri 7.30am - 5pm and Sat 9am - 1pm
Is a copy of the lease available?
Do you require a licence?
Yes, second hand goods licence
What lease deposit and/or other surety is required?
1 month rental
What are the main assets of the business?
Full asset list available
Are any items not included in the sale?
What is their overall condition?
Good working order
Do any require repairing?
How have they been valued ?
They have not been revalued and stand at depreciated (book) value. Most are already at zero book value
Are they presently insured?
Well established business with a good track record and reputation Strong management team with a vested interest in the business
Demand for new vehicle sales has weakened
With a larger stock holding on pre-owned, sales can be increased as the pre-owned market is still very buoyant
Interest rates always a threat, but with the current state of the economy needing stimulation, it is unlikely to increase substantially
What is the reason for the sale?
Why is this a good business?
It is a well established and self-sustaining business that has gone from strength to strength over the last 10 years. It also has a very strong management team that have a vested interest in the business
What is the price plus stock and the net profit?
R9 900 000 including stock of approximately R6 300 000
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