Fully describe the business's activities?
The business specialises in cleaning services. Their clients are in both the residential and corporate market. Services include carpet, upholstery, rug, mattress & curtain cleaning. They also do Pre & Post Occupation cleaning in both the Residential & Corporate spheres. They too do contract cleaning for corporate, retail and residential clients.
How long has the business been established?
The owner started the business in 2014.
How long has the owner had the business?
Since April 2014.
How does the business operate on a daily basis?
The Carpet Cleaning/Pre Occupation team meets with the owner every morning to get their instructions for the day and to be transported to the various sites. The contract cleaners go directly to their various sites.
How are the clients attracted to the business?
Word of Mouth creates quality referrals. Google Adwords, Social Media and branding on vehicles.
What Advertising/Marketing is carried out?
Social Media, Google Adwords & their association with BNI.
Does the business have any contract work?
Yes, the business has contracts and/or SLA's with some of the corporate clients. More detail will be disclosed during a meeting with Seller and due diligence.
What competition exists?
The cleaning industry is a competitive market; however, with many large and small operators, riddled with âfly-by-nightâ operations who disappear as fast as they appear. This company believes it is the leading Cleaning Service provider within their market segment.
What are the seasonal trends?
They are very busy throughout the year but peaks from September to March annually.
Is the business VAT Registered?
The business comprises of 2 separate companies. The original company (2014) concentrate on the corporate market and is VAT registered. The owner registered a second company in late 2017, which only services the residential market.
What VAT documentation is on file?
Will be made available on request.
Are there up-to-date Management Accounts available?
We have management accounts for the period from April 2019 to July 2019. The financial year-end of the business is March and not February.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
The non contractual business is all cash and all contracted clients pay at month end.
What is the age analysis of the debtors book?
Current. No credit facilities to clients.
How could the profitability of the business be improved?
The business is poised for another team to be introduced. A new vehicle was already bought as the company has become too busy for just one Carpet/Pre-Post Occupation Team. Unfortunately, the latter previously resulted in them having to turn business away. In future, they should focus more on the small/medium size Corporate Market for office, carpet- and chair cleaning as well as Contract Cleaning. Up until August of 2018, the owner was very hands-on and did not focus as much as was required on actively growing the business as it just evolved and grew organically. The owner is now less "hands-on" but is perhaps lacking the expertise of taking the company to the next level. The business has limitless potential should an excellent Business Development Strategy be implemented.
Is Seller finance available and for what amount?
No, the seller is emigrating and will not consider a sales structure with a vendor finance component.
What is the total staff complement?
25 workers excluding the owner.
Give a breakdown of staff/ functions/ length of service?
We have a detailed staff list on file which will be made available to serious buyers.
Do any receive special perks or incentives?
There are no special perks or incentive schemes.
Are they on contract?
The staff are all contracted to the business.
Do any have management potential?
Their are some identified staff members who can be used on various levels in the business.
How involved is the Owner in running the business?
The owner is full time involved with quoting, scheduling, accounting, HR and advertising (google).
When does the current lease end?
The business currently operates from the seller's residence which is sold. The "office" will have to be relocated.
What are the trading hours?
Retail Contracts: 08:30 â 17:30: Mon â Sunday Residential Contracts: 07:00 â 15:00: Mon - Saturday Carpet/Upholstery/Pre/Post: 07:00 â 15:00: Mon - Saturday.
What are the main assets of the business?
The two vehicles which is still on finance . 2 x Changans. 2 x Carpet Cleaning Machines All Cleaning Chemicals, Accessories and Machinery Tom Tom GPS 4 x Vacuum Cleaners All Cleaning Chemicals, Accessories and Machinery on Sites Business Cell Phone Number Accounting/Quoting System
Are any items not included in the sale?
Personal laptops, outstanding debtors and cash on hand at time of sale.
What is their overall condition?
Good operating condition.
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
The 2 x Changan motor vehicles which aare financed through Wesbank and MFC.
What are their settlement amounts?
MFC - O/S: R 177683.44 - Settlement R143 962 at time of this report. Article: 2018 CHANA - CHANGAN STAR 3 1.3 5 SEAT LUX F/C P/V YEAR MODEL: 2018 Monthly instalment Â±R 4124.17. Wesbank: O/S amount R 179 517 Settlement at time of the report R 175,212.97 (only acquired in June 2019) Article: 2019 CHANA - CHANGAN STAR 3 1.3 5 SEAT LUX F/C P/V Monthly instalment Â±R 4,303.88
Will Seller settle or Buyer to take over?
At the listed price the Buyer needs to take over the finance on the 2 vehicles.
Are copies of agreements available?
Yes, we have copies of the finance agreements on file.
Are they presently insured?
The assets and other relevant business risks are all comprehensively insured.
Brand recognition; Reputation - reliable company poised for growth; The hard work has already been done over the last 5,5 years. Reliant and well-trained staff; All processes are running smoothly Growing Industry; Huge demand, especially with households, no longer employing fulltime domestics.
The new owner must have a focused marketing strategy.
Introducing of a 2nd team; Find additional advertising outlets;
None specifically identified.
What is the reason for the sale?
Owner is busy with arrangements to emigrate to NZ.
Why is this a good business?
Well established, reliable with good business reputation.
What is the price plus stock and the profit?
The asking price is R1 500 000 with an average monthly net of R 65,985pm for the last 12 months before owners drawings, depreciation and tax. The purchaser must also take over the finance as detailed in this report.
Annual Turnover Amount between R 500 thousand and R 6 million