Fully describe the business's activities?
An Approved Marketer and Distributor of branded lubricants ,ideally situated to service small to medium sized lubricant customers .The business also provides lubricant storage ,spill containment kits and garage equipment .
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business receives orders from their client base and dispatches either ex warehouse or ex franchisor DC .The Manager handles all orders in and transportation to client . The Sales Executive takes care of client relationships and acquisition of new business .
How are the clients attracted to the business?
Reputable business with quality products and a strong trading history .
What Advertising/Marketing is carried out?
The business has a website and can be easily found on Google. Promotional Marketing activities are carried out from time to time.
What competition exists?
Other branded and non branded distributor of lubricants .
What are the seasonal trends?
The business tends to slow down between December to February .
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation are on file and will only be presented at a due diligence stage .
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
2017 and 2018 AFS
What percentage of the business is cash/credit?
90 on Credit .
How could the profitability of the business be improved?
The cost efficiencies have already been undertaken in terms of a new rental agreement with a significant monthly saving .
What is the total staff complement?
6 Staff including the General Manager
Give a breakdown of staff/ functions/ length of service?
1X GM 1X Warehouse and Stock Controller 1X Driver 1X Driver Assistant 1X Sales Executive
Do any receive special perks or incentives?
Yes ,yearly bonuses .
Are they on contract?
How involved is the Owner in running the business?
The Owners split their time between their various business entities and take care of finances from a strategic level.
When does the current lease end?
1 November 2021
Is there an option of renewal & what period?
Yes for 2 years .
What is the annual escalation %?
What are the trading hours?
Monday to Friday 8AM to 4:30PM
What is the square meters of the business?
Approximately 133 SQM.
Is a copy of the lease available?
Yes and only to approved buyers.
Do you require a licence?
Franchisor Approval is a pre-requisite .
What lease deposit and/or other surety is required?
Deposit equal to 2 months rental plus surety .
What are the main assets of the business?
Diesel heister , Kia Van ,dispensing equipment ,Shelving ,racking, office furniture and equipment
Are any items not included in the sale?
All assets are included in sale .
What is their overall condition?
All in good condition .
Do any require repairing?
None require any repairing at this point .
Are they presently insured?
All Assets are insured
Business is 8 years in operation with a diverse client base . They have favourable supplier arrangements and terms with no restriction on territories . The Staff are experienced and knowledgeable in their field of work .
General economic influences.
The business has the capacity and resources to distribute fuels and LPG gas via the existing supply chains . The new owner can explore these opportunities with immediate effect .
Price sensitivity in market place .
What is the reason for the sale?
The owners are involved in various businesses and now wish to consolidate owing to increasing commitments .
Why is this a good business?
The business has strong and loyal customer base with immediate opportunities for expansion to new markets . The cost efficiencies in terms of rental have already been undertaken with a monthly saving of R14K to be passed on to new owner . The Rental saving is not reflected on AFS 2018 but shown on Abridged Report .A Stock Account with Guarantees will need to be facilitated between new owner and Franchisor .
What is the price plus stock and the net profit?
Selling Price @ R3 700 000.00 ,Stock @ zero with the EBITDA and Owners Drawings = R1857 999.00 (NP) pa .
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