Fully describe the business's activities?
Pest and weed control in the commercial, industrial and residential market sectors. Initially the business focused on the East Rand but has since grown to include clients in Sandton, Pretoria and locations south of Johannesburg.
How long has the business been established?
Established in June 2007
How long has the owner had the business?
The owner started the business
How does the business operate on a daily basis?
The owner and his wife run the business. She is responsible for all administration, including book keeping and work scheduling. He is responsible for the overall management of the business, including selling, technical standards, quality control and procurement.
How are the clients attracted to the business?
New clients are attracted primarily through word of mouth endorsement from existing clients. Existing clients form a large proportion of revenue.
What Advertising/Marketing is carried out?
The company has a website, uses social media, and advertises in selected booklets and newspapers.
Does the business have any contract work?
Approximately 50% of revenue is generated from contract work. There are contracts in place with a number of grocery retail chains, body corporates, lifestyle estates, franchised restaurant chains and property management companies.
What competition exists?
There are a small number of large pest control companies and a large number of small operators.
What are the seasonal trends?
There is no seasonality
Is the business VAT Registered?
What VAT documentation is on file?
All required VAT documentation is available to an approved buyer
Are there up-to-date Management Accounts available?
Up to date management accounts are available to an approved buyer
What Balance Sheet and Income Statements are available?
Up to date financial reports are available
What percentage of the business is cash/credit?
Only one client receives terms (30 days). All other clients pay cash.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Change corporate structure to include a BEE component so that the company can participate in BEE tenders Employ a manager to focus on running the business as the owner is too thinly spread Register with the Treasury Supply Chain Management system
Is Seller finance available and for what amount?
What is the total staff complement?
Total staff complement is 4 persons
Give a breakdown of staff/ functions/ length of service?
General management, sales, technical and procurement - 12 years Administration, project planning and accounting - 12 years Technician 1 - 9 years Technician 2 - 1 year
Do any receive special perks or incentives?
Technician 1 - Basic of R 10 000 plus commission on sales over R 100 000 Technician 2 - Basic of R 10 000 plus commission plus vehicle
Are they on contract?
Both on contract consistent with Basic Conditions of Employment
Do any have management potential?
Yes - one technician also has previous management experience with a large pest control company
How involved is the Owner in running the business?
Owner is totally involved in running the business. At present he spends 5% of his time on technical issues and 95% on client contact, quotations and new sales.
When does the current lease end?
The business operates from the home of the owner, which is rented. Currently the lease is on a month to month basis.
Is there an option of renewal & what period?
Yes - to be negotiated if the buyer wishes to exercise the option to remain on the current premises.
What is the annual escalation %?
To be negotiated
What are the trading hours?
Monday to Friday 7h30 to 16h30 Every second Saturday
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
Large accounts and the SPCA demand that the service provider be a member of the South African Pest Control Association.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Assets consist of 3 vehicles, a computer, printer, office equipment, electronic equipment, office furniture and pest control equipment. An asset register is available for inspection.
Are any items not included in the sale?
What is their overall condition?
Well used but in very good condition
Do any require repairing?
How have they been valued ?
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?
Yes - with Old Mutual. Also required is public liability insurance of R 5 000 000.
Corporate culture of best practice in the industry 50% of revenue is contract work Successful, experienced technical operating team Large client base (about 1400 clients) Established, respected brand image The business can be operated at a location of the buyer's choice
No succession plan New skill set required to take business to the next level Family focus of the owners has curtailed growth opportunities
No boundaries to expansion BEE accreditation will enable public tender participation BEE participation will enlarge the spread of opportunities in the private sector A dedicated representative would boost revenue New management will have the resources and vision to grow the business
Price cutters are an ever present threat Prevailing economic conditions affect the market and margins that can be achieved
What is the reason for the sale?
Owner is emigrating
Why is this a good business?
A strong track record since 2007 Respected brand name Large client base Under resourced so it is an excellent platform for new management and ownership to further develop the business Buyer is not limited to current location
What is the price plus stock and the net profit?
R 1 500 000
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