Fully describe the business's activities?
The business offers a wide range of vehicle services that include: Tyres, Wheels, Batteries, Shocks, Brakes, Exhaust, Wheel Alignment, AC Service, Shock Tester, therefore offers customers a one-stop solution for their vehicles.
How long has the business been established?
The business is a well-established being in existence for the last 30 years. It is clearly visible on a busy main arterial with lots of passing trade.
How long has the owner had the business?
The owner acquired the business 3 years ago.
How does the business operate on a daily basis?
Most customers book in advance for the fitment on various vehicles of components such as tyres, batteries and shocks. Obviously, the business enjoys a lot of walk-in business due to emergencies etc.
How are the clients attracted to the business?
The product they supply is a necessity for every vehicle on the road. The clients are attracted to the business by word of mouth, regular and repetitive client base walk-in business due to their position and visibility.
What Advertising/Marketing is carried out?
Currently, no Advertising/Marketing is carried out.
Does the business have any contract work?
They do not have any contracts, but have long standing relationship with end users.
What competition exists?
Their closes competition is Â± 2km away from the business.
What are the seasonal trends?
On the passenger side, the trend remained constant throughout the year with peaks shortly before and even during the holiday seasons. Lower activities from January to March, due to companies financial year-end.
Is the business VAT Registered?
The business is a VAT Vendor.
What VAT documentation is on file?
All VAT documentation is available to serious Buyers.
What Balance Sheet and Income Statements are available?
February 2019 Balance Sheet and Income Statements are available.
What percentage of the business is cash/credit?
The business' takings are 65% by Credit/Debit Card and 35% cash.
What is the age analysis of the debtors book?
The business does not have any debtors. All sales are cash.
How could the profitability of the business be improved?
Marketing and Promotions will improve the profitability of the business. Advertising in local newspapers and online presence such as Website and Social Media. Forming relationships with secondhand dealers will also benefit the company.
Is Seller finance available and for what amount?
No vendor finance available.
What is the total staff complement?
The total staff complement is Five.
Give a breakdown of staff/ functions/ length of service?
1 x Wheel Alignment Technician 2 x Tyre Fitters 1 x Exhaust Technician 1 x Suspension and Brakes Technician
Are they on contract?
All staff is permanently employed.
How involved is the Owner in running the business?
The Owner is 100% involved in the business.
When does the current lease end?
Seller's father is the owner of the building, therefore the Seller will negotiate a new lease agreement with the Buyer. The owner is also considering to sell the property. Asking price R2,5m.
Is there an option of renewal & what period?
The option of the renewal period will be negotiable with Seller.
What is the annual escalation %?
To be negotiated.
What are the trading hours?
Mon â Fri: 8:00 â 17:00 and Sat: 8:00 â 13:00.
What is the square meters of the business?
The square meters of the business is 991 m2
Who is the Owner/Landlord?
The property belongs to the seller's father.
Is a copy of the lease available?
New Lease Agreement have to be negotiated.
Do you require a licence?
No Licence is required for this business.
What lease deposit and/or other surety is required?
1-2 Months Lease Deposit is required.
What are the main assets of the business?
The main assets of the business is; 1 x 3d Hunter Wheel Alignment Machine 1 x Shock Absorb-er Testing Machine 1 x Tyre Balancer 1 x Tyre Changer 1 x AC Machine 2 x CO2 Welding Machine 1 x Exhaust Pipe Bender 1 x Launch Diagnostic Machine 4 x 4 Post Lift 1 x 2 Post Lift
Are any items not included in the sale?
All items are included in the sale.
What is their overall condition?
The overall condition of the assets is good.
Do any require repairing?
How have they been valued ?
The assets valued at market related secondhand values.
Which assets are on lease/HP and with whom?
None, all assets are unencumbered.
Are they presently insured?
All assets are comprehensively is insured.
The business is located in a prime area on a busy main road with easy access. Well established business which started in +/- 1989. The business has sound business relationships with customers and suppliers. Established clients from Motor Dealers. High-quality products. Wide range of industry-related services. The owner's strong believe and deliverance of excellent service, and the top-notch equipment in use, attracts new customers daily.
The industry is price-sensitive. Customers are known to shop around for the best price. Not enough marketing.
There is still extensive opportunities for growth in the surrounding market. More advertisement and marketing. Dealerships and fleet companies around the area which are not approached yet. Expand service offering.
Due to tight economic circumstances, new customers request various account options, which can lead to bad debts.
What is the reason for the sale?
The Seller wants to return to the family business outside the borders of SA.
Why is this a good business?
The business is in existence since 1989 with good and sustainable profits and room for growth. The business is extremely well priced with an 18 months Repayment Period and 68% RoI.
What is the price plus stock and the profit?
The selling price is R 1,950 000 including stock of +/- R 300 000.00 with an average net profit of R 110,928.00 per month before owner's drawings, depreciation and tax.
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