Fully describe the business's activities?
The company has been in existence for over 40 years. Many of the original customers are still trading with the company. The company has capability to design, develop and make prototypes for customers. Tooling is made in house if the company succeeds in securing new work. There are over 350 moulds that the company has. The company manufactures high quality technical plastic injection moulded products for a variety of industries. These include automotive, sport, mining, electronics, electricity distribution, furniture and engineering.
How long has the business been established?
Over 40 years
How long has the owner had the business?
What steps are in place to solve 'load shedding' problems?
The company has a generator
How does the business operate on a daily basis?
Other than the development of new products, the company manufactures goods to order. These orders either made from customers moulds or inhouse moulds. Most customers are repeat order clients.
How are the clients attracted to the business?
Mainly word f mouth due to the age and reputation of the company.
What Advertising/Marketing is carried out?
The web site is prime source of new business. Being based in an industrial area business is also sourced via drive past business.
Does the business have any contract work?
There are SLA type agreements however clients do not usually move due to speciality of the products.
What competition exists?
There are other competitors in the industry however owning and holding the moulds contributes to security of earnings.
What are the seasonal trends?
The last quarter is usually busier as the amusement industry gains momentum.( pool and soccer tables)
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
The last year and before are available
What is the age analysis of the debtors book?
Most clients are 30 days
How could the profitability of the business be improved?
More marketing and advertising
What is the total staff complement?
23 staff including factory manager, office manager, toolroom foreman, bookkeeper
Do any have management potential?
The management support staff are already in place
How involved is the Owner in running the business?
Owner provides GM overview
When does the current lease end?
Property is owned by the seller. lease with options available
What are the trading hours?
40 hours per week
What is the square meters of the business?
Who is the Owner/Landlord?
What are the main assets of the business?
There are 12 injection moulding machines, tool room equipment, CNC machines, lathes moulds etc.
What is their overall condition?
Which assets are on lease/HP and with whom?
All leases will be settled
Very well established, energy efficient machines, reliable & modern equipment, skilled staff, easy access to highways and customers, support management in place
More focus on marketing needed
Extend the customer base
The broader economy
What is the reason for the sale?
Seller wants to retire
What is the price plus stock and the net profit?
R14m for shares excluding debtors, creditors, cash , stock and working capital
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Annual Turnover Amount between R 500 thousand and R 6 million