Fully describe the business's activities?
Manager run business, this is a new company that was started to provide excellent quality laptops at low prices so that customers donât have to spend a fortune. All laptops are put through a rigorous 27 point test to ensure that customers get the best quality without compromise and are sold with a warranty.
How long has the business been established?
Almost one year
How long has the owner had the business?
How does the business operate on a daily basis?
The business is run by a manager and assistant, who open and close daily. They inspect and conduct a 27 point check on all purchases and if everything checks out the business will purchase the laptop for resale
How are the clients attracted to the business?
They have an active website and facebook page. The business has an excellent position on a busy road with excellent visibility and signage
What Advertising/Marketing is carried out?
Website and social media, the owner has also printed some leaflets for distribution to universities and colleges
Does the business have any contract work?
What competition exists?
Competition is mainly from retailers selling new products at much higher prices
What are the seasonal trends?
Not yet known
Is the business VAT Registered?
No not yet
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The business is still quite new and the seller intends to market to universities, schools, and colleges
Is Seller finance available and for what amount?
What is the total staff complement?
Besides the owner there is a manager and 1 assistant
Give a breakdown of staff/ functions/ length of service?
Both employees inspect and test equipment as required
Do any receive special perks or incentives?
They get a basic plus commission
Are they on contract?
Do any have management potential?
One is a manager
How involved is the Owner in running the business?
Spends about one hour per day on the business
When does the current lease end?
3 year lease in place
Is there an option of renewal & what period?
To be confirmed
What is the annual escalation %?
To be confirmed
What are the trading hours?
M-F 9-5 Sat 9-1
Is a copy of the lease available?
This can be made available
Do you require a licence?
Second hand dealers licence is required
What lease deposit and/or other surety is required?
One month deposit
What are the main assets of the business?
Set up costs of approximately R300 000 plus testing and office equipment
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Actual cost from less than a year ago
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?
Very well set up business satisfying a need, already very profitable, with great potential
This business can be grown exponentially and with more marketing to Universities, Schools and Colleges sales growth will improve, it would be quite feasible to open other outlets as there are no shortage of second hand equipment
What is the reason for the sale?
The owner has another business in KZN and his wife has been offered a position down there that she would like to take up
Why is this a good business?
This business is already very profitable with excellent growth prospects without tying the owner down full time
What is the price plus stock and the net profit?
Selling at R690 000 plus stock of between R85 000 and R100 000 with an EBITDA profit of approximately R240 000 in seven months
Annual Turnover Amount between R 500 thousand and R 6 million