Fully describe the business's activities?
The business comprises of 2 stores. The core business is power tool sales and repairs to the construction, mining industry and private clients. They also rent out tools to clients. The business is located on a busy street in Pretoria with great visibility. The larger store is located in PTA north and the other in PTA east.
How long has the business been established?
The owner started the business in 2002.
How long has the owner had the business?
How does the business operate on a daily basis?
Sales, rental and repairs of top brand tools and machinery The business is also an accredited agent for 4 large names in the industry, and has sole agency for most of these names in the Pretoria area. It is the warrantee claim repair centre for these brands in the Pretoria area.
How are the clients attracted to the business?
The business has Representatives on the road marketing the business and doing sales. Reps out on the road , bill boards , adverts in publications and social media. Large part is also word of mouth.
What Advertising/Marketing is carried out?
There are in-shop specials from time to time. Reps are on the road on a daily basis. Billboard, adverts in publications and social media.
Does the business have any contract work?
No but there are large companies who are regular clients. These are National companies that pay well and orders regularly.
What competition exists?
There are 2 rental businesses in the area as well as one business that does sales of tools.
What are the seasonal trends?
The business is closed from the 15th of December till the first week of January.
Is the business VAT Registered?
What VAT documentation is on file?
Vat returns are available.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Up to date financials available.
What percentage of the business is cash/credit?
80% on Credit 20% cash
What is the age analysis of the debtors book?
The debtors book is on 30 days from statement.
How could the profitability of the business be improved?
More reps to market the business will increase sales and therefore profits. Open more outlets, structures to grow already in place. Importing own power-tool range and machinery will lower cost of sale.
Is Seller finance available and for what amount?
What is the total staff complement?
In total 20 staff across both stores.
Give a breakdown of staff/ functions/ length of service?
1 Workshop Manager, 4 Technicians, 1 Costing Clerk 2 Reps, 2 Electricians, 2 Admin Ladies 2 Sales assistants, 1 Mechanic, 1 Debtors clerk 1 Supervisor in Shop 2 Cleaners 1 Creditors clerk
Do any receive special perks or incentives?
Bonuses in December based on performance.
Are they on contract?
Yes all are on basic employment
Do any have management potential?
Yes. The supervisor and Workshop Manager
How involved is the Owner in running the business?
Daily involvement from the owner regarding operations and supervision.
When does the current lease end?
Wonderboom branch 2023 Silverton on a year to year with option of extended period.
Is there an option of renewal & what period?
Yes, 5 years.
What is the annual escalation %?
What are the trading hours?
7:30 to 5pm
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
What lease deposit and/or other surety is required?
I months deposit
What are the main assets of the business?
Stock at cost R4 000 000. Full asset list is available
What is their overall condition?
Good working condition.
How have they been valued ?
Which assets are on lease/HP and with whom?
Company delivery vehicles.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Up for discussion and dependant on sale conditions.
Are copies of agreements available?
Are they presently insured?
Yes, fully insured.
The business is well established and well known in the industry. The agencies which is for the whole of Pretoria. The business is one of only 2 Warrantee repair centres in Pretoria for certain products.
None perceived, business trading well.
More reps to sell the rental options. Website with online store. Local adverts in news papers.
What is the reason for the sale?
Owner is relocating.
Why is this a good business?
Extremely well priced. The business is well established showing good profits with option to rollout stores in other areas.
What is the price plus stock and the profit?
R5500 000 including stock and assets.
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