Aldes Business Brokers

Summary

This franchise group specialises is all aspects of energy saving devices. Reliable, efficient and clean solar energy for your home, business or commercial applications, generators, inverters, UPS devices, heat pumps etc. A well established brand now looking for new franchisees. this is a rapidly growing market. Low cost entry with very real potential for exceptional returns.

1. History Background

How long has the business been established

The brand was established 5 years ago by the current owners.

What steps are in place to solve "load shedding" problems

The products they sell will cope with power faults.

What is the average KW usage

N/A

2. Present Market

How does the business operate on a daily basis

The sale of electric power equipment, solar heaters, generators etc.

How are the clients attracted to the business

Quality products and service.

What Advertising/Marketing is carried out

A very effective marketing plan is carried out bringing in 1,500 to 2,000 enquires a month, which are passed on to the franchises

Does the business have any contract work

There could be, depending on the contacts of the new owner. This type of business can be very profitable, especially if one can supply systems to new developments etc.

What competition exists

There is very little "quality" competition.

What are the seasonal trends

Winter sees a upturn.

3. Financial

Is the business VAT Registered

Will depend on T/O

What VAT documentation is on file.

new business.

Are there up-to-date Management Accounts available

new business.

What Balance Sheet and Income Statements are available

New business. Maybe one could see figure for an up and running franchise.

What percentage of of the business is cash/credit

100% cash is advisable, but the owner can set his terms with his clients. All products purchased from H/O are cash only. The ideal would be to build up a debit order book as soon as possible to ensure recurring profitable business.

What is the age analyse of the debtors book

New Business.

How could the profitability of the business be improved

Look at other branches.

Is Seller finance available and for what amount

NO.

What is the payback period

TBA.

What is the ROI

TBA

4. Staffing

What is the total staff complement

Up to 5 employees.

Give a breakdown of staff/functions/length of service

For a Platinum franchise, one would need a store manager,1-2 people doing the work in the store and at least 1 external sales person to start with.This could be the owner.

Do any receive special perks or incentives

Owner decides.

Are they on contract

Owner decides.

Do any have management potential

Owner decides.

How involved is the Owner in running the business

24/7

5. Premises

When does the current lease end

Each new franchise is responsible for finding and managing his own premises.

Is there an option of renewal & what period

N/A

What is the annual escalation %

N/A

What are the trading hours

8am - 5pm.

What is the square meterage of the business

50 Sq Metres.

Is a copy of the lease available

TBA.

Do you require a licence

TBA.

6. Assets

Is a full asset list on file

All assets are new and require no immediate work or maintenace .Head Office purchases all of its stock on a cash basis only from its suppliers.

Are any items not included in the sale

NO.

What is their overall condition

N/A

Do any require repairing

N/A

How have they been valued.

BY The seller-new.

Which assets are on lease/HP and with whom

N/A

What are their settlement amounts

N/A

Will Seller settle or Buyer to take over

Are copies of agreements available

N/A

Are they presently insured

N/A

7. S.W.O.T. Analysis

Strengths

Quality, Eskom approved, managment back-up.

Weaknesses

Not doing things by the book.

Opportunities

A market with great potential..

Threats

Some competition.

8. Reason For Sale

What is the reason for the sale

New franchaise. Projections are based on the least expensive tier.

9. Conclusion

Why is this a good business

Last year their solar market increased by 650%

What is the price plus stock and the net profit

Very little stock is in the sale as stock will be bought as and when required giving the buyer the chance of getting into the market.