Fully describe the business's activities?
The business sources ( Imports and Locally) and repairs all security related equipment. With Head office and branch in Port Elizabeth and another branch in George, this business services a huge area of the eastern Cape.
How long has the business been established?
This business was first started in 1986 .
How long has the owner had the business?
Since March 2014
How does the business operate on a daily basis?
The business operates on a 8 to 5 Monday to Friday basis and 9 to 12 noon Saturdays. with sales staff in Port Elizabeth and George. Two staff members handling sales and technical repairs.
How are the clients attracted to the business?
The clients are attracted to the business through web site advertising and marketing visitors to installers.
What Advertising/Marketing is carried out?
Web site, word of mouth and frequent communication with installers and small construction companies.
Does the business have any contract work?
No contract work , but are preferred supplier to many service providers.
What competition exists?
Limited competition from other suppliers.
What are the seasonal trends?
Consistent sales throughout the year
Is the business VAT Registered?
Yes , the business is Vat Registered
What VAT documentation is on file?
Each bi-monthly VAT return as requested by SARS
Are there up-to-date Management Accounts available?
Yes, up to date management accounts available.
What Balance Sheet and Income Statements are available?
AFS to Febuary 2018
What percentage of the business is cash/credit?
32 % on credit, 62% cash on collection.
What is the age analysis of the debtors book?
90% of debtors settle within the 30 day window period. 10% of debtors settle within 60 day period. The debtors ledger is well managed and the business has had no bad debts for the last two years
How could the profitability of the business be improved?
A more aggressive advertising and marketing campaign.
Is Seller finance available and for what amount?
What is the total staff complement?
total Staff compliment of 4 staff members. Two in George Two in Port Elizabeth
Give a breakdown of staff/ functions/ length of service?
Sales/ admin staff member in Port Elizabeth: 5 years service Sales /technical staff member in Port Elizabeth: Employed by previous owner since 2010 Sales /admin staff member in George employed since 2013 Sales/technical staff member in George employed since 2013
Do any receive special perks or incentives?
All staff members earn a basic salary plus commission on Sales
Are they on contract?
All are on permanent Staff contracts
Do any have management potential?
both Admin Staff members have excellent managerial skills.
How involved is the Owner in running the business?
The owner is 50 % involved in the business
When does the current lease end?
Port Elizabeth: Current lease ends end April 2020 George: lease ends 31 July 2021
Is there an option of renewal & what period?
An option to renew for 3 years.
What is the annual escalation %?
Port Elizabeth Branch : 8 % George Branch 8%
What are the trading hours?
8am to 5 pm Mondays to Fridays
What is the square meters of the business?
George 71.63m2 Port Elizabeth: 440 m2 ( Inclusive of a dwelling on the premises)
Who is the Owner/Landlord?
Port Elizabeth: Haldenby Estates ( Eastern Cape ) CC George: Gilofan Trust
Is a copy of the lease available?
Yes copies is available.
Do you require a licence?
Importers permit is on file. No other licences required.
What lease deposit and/or other surety is required?
One months rental deposit required on each premises
What are the main assets of the business?
The main Asset of the business is the Goodwill between suppliers and the Business and business and clients. a list of the furniture and Fittings , Equipment and electronic equipment is attached.
Are any items not included in the sale?
all items on the list are included.
What is their overall condition?
excellent working condition.
Do any require repairing?
no repairs required at present.
How have they been valued ?
Been valued at a market related value
Which assets are on lease/HP and with whom?
Cannon Copier/printer /scanner on lease from Astfin EC (pty) Ltd
What are their settlement amounts?
Balance R29 080 last Instalment 31 January 2020
Will Seller settle or Buyer to take over?
Buyer to take over
Are copies of agreements available?
Yes Copy is available
Are they presently insured?
All assets and equipment are insured.
this business is a service provider with an industry that has a colorful future. In South Africa, security will always be a concern and demand for its products .
A competitive business.
This is a great opportunity to enter a well established industry selling products that will always be in demand and that has great growth potential.
This business is compliant in all respects and poseses an import permit for for import of products.
What is the reason for the sale?
Owner wishes to retire.
Why is this a good business?
This is a well established and profitable business selling and servicing products for which there will always be a demand. This business has great growth potential and was the first Security equipment sales company in Port Elizabeth with a branch in George.
What is the price plus stock and the net profit?
The asking price is R 1 950 000 and average stock on hand at both branches is approximately R 500 000
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