Fully describe the business's activities?
Supermarket selling fruit and veggies, groceries and has a bakery. House wives and traders come and buy.
How long has the business been established?
The business was opened in 2014 when the shopping center opened.
How long has the owner had the business?
The owner started the business. He has 4 other similar stores.
How does the business operate on a daily basis?
The managers open and close. House wives and traders come and buy fruit, veggies, groceries and baking.
How are the clients attracted to the business?
News paper advertising. Sms's to existing clients on specials. The shop is located in a busy shopping centre where an Engen and Mr Price will soon be operative. This will ensure more feet into the shop.
What Advertising/Marketing is carried out?
News paper, sms and brand name of group.
What competition exists?
There is a Pick A Pay 16 km away. Their prices are not as competitive.
What are the seasonal trends?
Summer months they sell more fruits and in winter people buy more veggies. During the year clients by from the bakery and also groceries.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
VAT documentation will be made available during due diliigence.
Are there up-to-date Management Accounts available?
Monthly figures are available.
What Balance Sheet and Income Statements are available?
AFS for the year ended December 2018 is on file.
What percentage of the business is cash/credit?
60% cash and 40% EFT and swipe.
What is the age analysis of the debtors book?
Debtors pay an upfront amount and draw down from it monthly.
How could the profitability of the business be improved?
A enthusiastic owner who will be hands on. Manager salaries could be cut.
What is the total staff complement?
The total number of staff is 44.
Give a breakdown of staff/ functions/ length of service?
11 cashiers 4 bakery staff 8 floor staff 4 in potato station 1 forklift driver 1 cold room supervisor 1 truck driver 10 staff in pre-preparation room 1 supervisor 3 managers (it could be cut to 2, we have allowed for salaries of R20,000 pm in our expenses)
Do any receive special perks or incentives?
No special perks or incentives are paid to the staff.
Are they on contract?
Staff are on employment contracts.
Do any have management potential?
Yes, the current 2 managers run the shop in the absence of the owner.
How involved is the Owner in running the business?
The owners is not 100% involved as they have a total of 4 franchise shops to run.
When does the current lease end?
The current lease ends September 2019.
Is there an option of renewal & what period?
An option for a further renewal of 5 years are offered by the landlord.
What is the annual escalation %?
What are the trading hours?
Monday to Saturday 7am to 6pm Sundays 7am to 4pm
What is the square meters of the business?
Is a copy of the lease available?
A copy of the lease is available.
Do you require a licence?
Certificate of Health (in place) License for Sampro Radio at R7,000 pa.
What lease deposit and/or other surety is required?
To be negotiated with the landlord.
What are the main assets of the business?
Multiplex plant room with motor and compressor for fridges and deep freezers. Bakery equipment. Fork lift 2 Trucks A full asset list is on file.
Are any items not included in the sale?
Everything as seen on the asset list is included in the sale.
What is their overall condition?
The assets are in good condition and get serviced on a regular basis.
Do any require repairing?
Regular services are undertaken.
How have they been valued ?
The owners spend R4,5m to open the store and has since bought a number of assets.
Which assets are on lease/HP and with whom?
Are they presently insured?
The business and its assets are comprehensively insured.
Well know shop with a good trade name Regular clients who buy bulk and then also the house wives in the area.
A hands on owner who gets personally involved will ensure growth and cost cutting.
No threats are identified.
What is the reason for the sale?
The sellers owns 4 other businesses that takes up their time.
Why is this a good business?
Well established brand, in operation for 5 years with qualified and loyal staff.
What is the price plus stock and the net profit?
The price for the business is R4.5m plus stock of +/- R1m. The average net profit is R130,000 per month.
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