Aldes Business Brokers

Summary

This franchise supplies purified water to a expanding market and wants to expand in RSA after establishing a strong base in the Gauteng area. A limited number of franchises are now avilable in the Western Cape and other areas of the country. The Market is large ang growing all the time.

1. History Background

Fully describe the business's activities

This franchise supplies purified water to a expanding market and wants to expand in RSA after establishing a strong base in the Gauteng area. A limited number of franchises are now avilable in the Western Cape and other areas of the country.

How long has the business been established

The business has been going for five years, mainly in the Joburg area.

How long has the owner had the business

The owner has had the business five years along with other types of business.

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

The owner also has a franchise ,distributing generators.

What is the average KW usage

N/A

2. Present Market

How does the business operate on a daily basis

The business has a three tier structure,PLATINUM--GOLD AND SILVER .The Platinum and gold manufacture the purified water and like the silver sell and distribute the water. Buyer have a choice.

How are the clients attracted to the business

A marketing plan is ongoing to assist all franchaises.

What Advertising/Marketing is carried out

A MARKETING PLAN PLUS THE TRAINING by H.O.

Does the business have any contract work

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

What competition exists

As usual plenty but the market is big and it comes down to hands on and effective marketing.

What are the seasonal trends

An upward swing in the summer.

3. Financial

Is the business VAT Registered

The new business will in the future

What VAT documentation is on file.

New business.

Are there up-to-date Management Accounts available

Will try to obtain from other franchisees in the group.

What Balance Sheet and Income Statements are available

As above.

What percentage of of the business is cash/credit

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

What is the age analyse of the debtors book

New business.

How could the profitability of the business be improved

Look at the other franchises in the group.

Is Seller finance available and for what amount

No.

What is the payback period

It varies but you should get your money back in a year.

4. Staffing

What is the total staff complement

Varies which tier is bought from 2 to 5 people.

Give a breakdown of staff/functions/length of service

For platinum franchise,you would need a store manager,1-2 people doing bottling of water and at least 1 external sales person to start with{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

Should be 24/7

5. Premises

When does the current lease end

Each new owner is responsible to find and manage his own premises.

Is there an option of renewal & what period

TBA.

What is the annual escalation %

TBA.

What are the trading hours

TBA

What is the square meterage of the business

50 SQ MTS.

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 maintainence.Head office purchasers all its stock on a cash basis only from suppliers.

Are any items not included in the sale

No

What is their overall condition

TBA

Do any require repairing

TBA

How have they been valued.

TBA

Which assets are on lease/HP and with whom

TBA Maybe the bakkie.

What are their settlement amounts

TBA

Will Seller settle or Buyer to take over

N/A

Are copies of agreements available

Yes.

Are they presently insured

N/A

7. S.W.O.T. Analysis

Strengths

A market which is very relavent at the moment ,particulaly health wise.

Weaknesses

Experience,but that can be overcome with the management back-up and training.

Opportunities

Good marketing.

Threats

Letting the standards fall and service.

8. Reason For Sale

What is the reason for the sale

New franchaise.

9. Conclusion

Why is this a good business

The market is big and profitable. Buying this franchaise means buying what you need only and not a load of excess stock..

What is the price plus stock and the net profit

Depending on what package is bought.The financials are based on platinum grade for the first year.