Fully describe the business's activities?
Commercial and domestic laundry services to guesthouses, self catering units, assisted living facilities, medical institutions and restaurants and the public. The business has a pickup and drop service in place.
How long has the business been established?
The business has been established for 18 years plus.
How long has the owner had the business?
The current owner recently took over the business.
How does the business operate on a daily basis?
Laundry is picked up on a fixed schedule from longstanding customers for washing, drying and ironing. Normal business from the public on a daily basis.
How are the clients attracted to the business?
The business is well located and visible from a very busy main road with ample public parking. The business is in the heart of an area known for high rising flats (holiday accommodation), old age homes and guest houses.
What Advertising/Marketing is carried out?
No formal advertising/ marketing is currently done.
Does the business have any contract work?
Yes, the business has permanent arrangements with various institutions.
What competition exists?
There are laundromats in the area but they are not geared for volumes or bigger/heavier items.
What are the seasonal trends?
The business is busier during the holiday season.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
All relevant VAT documentation is on file and will be available during a due diligence.
Are there up-to-date Management Accounts available?
Yes, up-to-date Management Accounts are available.
What Balance Sheet and Income Statements are available?
Financial Statements for 28 February 2019 are available.
What percentage of the business is cash/credit?
60% on credit. 40% cash.
How could the profitability of the business be improved?
The business can start advertising. Appoint a part time rep to attract more commercial customers. The business is capable to handle bigger volumes with the current infrastructure.
Is Seller finance available and for what amount?
Yes the owner will consider Seller finance for a small % of the selling price on a short term basis on owner's discretion only.
What is the total staff complement?
8 Employees. (Total salary bill +- R37,000 pm)
Give a breakdown of staff/ functions/ length of service?
Most employees are long serving with the senior lady with 10 years of service. 1x driver (3yrs). All staff members are multi-skilled and well trained.
Do any receive special perks or incentives?
The driver currently uses the delivery vehicle to get home.
Are they on contract?
Normal basic Labour Law applies.
Do any have management potential?
The senior lady has previously acted as the manager.
How involved is the Owner in running the business?
The current owner is actively involved on a daily basis.
When does the current lease end?
The current lease ends 30 April 2021.
Is there an option of renewal & what period?
Yes, there is a renewal option for another 5 years.
What is the annual escalation %?
7% annual escalation.
What are the trading hours?
Mon- Fri 07h30- 17h30. Sat 08h00- 12h30.
What is the square meters of the business?
Is a copy of the lease available?
Yes a copy of the lease is available.
Do you require a licence?
No special licence is required.
What lease deposit and/or other surety is required?
A R60,000 deposit is required.
What are the main assets of the business?
11x Commercial washing machines. 8x Tumble driers. 3x Roller Pressers. Various tables and benches.
Are any items not included in the sale?
All items are included in the sale.
What is their overall condition?
All equipment is in a good working condition.
Do any require repairing?
Normal regular maintenance applies.
How have they been valued ?
Owner/ broker valuation. Insurance valuation R4m.
Which assets are on lease/HP and with whom?
No assets are on lease.
Are they presently insured?
All assets are insured.
Long established business with loyal customers. Well located and very visible with ample parking. Good equipment. Long serving, well trained and loyal employees.
No obvious weaknesses were detected.
To attract new and more commercial customers.
Normal economic threats with ever increasing cost of electricity.
What is the reason for the sale?
The owner wants to relocate.
Why is this a good business?
This is a profitable, long established business with a good reputation with many opportunities to expand.
What is the price plus stock and the profit?
Price R1,735,000 + stock +- R15,000= R1,750,000. Profit for the 12 months ended 28 Febr 2019, R787,062. Return on Investment (ROI) 44,9%!!
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