Fully describe the business's activities?
Mechanical workshop situated in the main street of Boland town. The business is surrounded by motor dealers and related businesses. Owner is doing selected mechanical repairs on vehicles. Premises consist of a workshop area as well as a shopfront facing the main road and where vehicles are displayed to be sold. Business has several contracts with businesses and wine farms.
How long has the business been established?
4 Years and 9 Months
How long has the owner had the business?
4 Years and 9 Months
How does the business operate on a daily basis?
The owner is a qualified mechanic who enjoys working on the vehicles. The owners wife is managing all the important administration. There is a reliable and capable technician as well as a casual to assist the owner in doing the repairs. Due to the abundance of clients the business is selective in the type of work that it accepts. By doing that the business produces quality work and insures happy and recurring customers. Lots of growth potential on the mechanical repair division as well as on the vehicle sales.
How are the clients attracted to the business?
The business is in the main street of town with a visible shopfront. Most of the work is generated by recurring customers. The business enjoy the support of private clients, businesses and wine farms in the area. The business is in the fortunate position to be selective in choosing its customers.
What Advertising/Marketing is carried out?
Recurring private customers, companies and farms. " Word of mouth"
Does the business have any contract work?
What competition exists?
There is lots of competition in the area. Still, the owner is selective with the type of jobs he take on.
What are the seasonal trends?
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
For the financial year ending February 2018
What percentage of the business is cash/credit?
50% Credit 50% Cash
What is the age analysis of the debtors book?
Sold without debtors
How could the profitability of the business be improved?
By taking on more work. Seller is of the opinion that turnover can be doubled with the current available work. Will however need more staff. Seller choose not to grow to big.
Is Seller finance available and for what amount?
What is the total staff complement?
2 Employees. The owner does most of the mechanical work whilst his wife handling the administration and reception duties.
Give a breakdown of staff/ functions/ length of service?
One employee, not qualified as mechanic, that is capable of affecting repairs under supervision of the owner. One employee who is assisting in the workshop.
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?
Very involved. The owner is a qualified mechanic and do most of the work.
When does the current lease end?
Is there an option of renewal & what period?
Needs to be negotiated.
What is the annual escalation %?
Between 6% to 10%. Last escalation was 8%.
What are the trading hours?
Lessee's own discression
Who is the Owner/Landlord?
Dieter Leicher Familie Trust IT 3690/96 who leases the premises to Jan Albert Rust who sub-lease the premises to the Seller.
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
Deposit of R20 000.00
What are the main assets of the business?
Equipment and tools
Are any items not included in the sale?
What is their overall condition?
Good workable condition. In use.
Do any require repairing?
How have they been valued ?
No. Owner of the opinion that the value of the assets represents a fair value. Much lower than the replacement value but higher that an "auction 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?
The owner is personally working on the vehicles. Good quality work ensures satisfied customers. This business model is working for the current owner and is part of his success story.
A new owner can elect to appoint more technicians to increase turnover. There is sufficient capacity with regards to floor space. The showroom can be put to better use by selling cars. The current owner is not focused on motor sales.
No specific threats. Normal competition from other garages and workshops.
What is the reason for the sale?
Owner want to relocate
Why is this a good business?
This business is suitable for a hardworking entrepreneur with a mechanical qualification and experience. This is a family business where the owners wife attend to the administration and reception. This is a proven recipe and should a buyer duplicate it he will have a very good chance of success. The owner is happy to assist the buyer with the handover of bigger clients.
What is the price plus stock and the net profit?
Purchase price including stock - R 880 000.00 Nett profit per annum - R528 000
Annual Turnover Amount between R 500 thousand and R 6 million