Aldes Business Brokers

Summary

This business is well supported and all systems in place. Brand has been established for the last 35 Years and growing yearly. Nett R 50 000.00 plus per months and well priced at R 1 700 000.00 including stock.Staff in place and ready to take over with no changes.. Please call Werner Angell-Schau on 082 552 2999 for Gold.

1. History Background

Fully describe the business's activities?

Retail of gold and silver jewelery and watches and related services.

How long has the business been established?

3 Years

How long has the owner had the business?

3 Years

What steps are in place to solve 'load shedding' problems?

Back up generator by Center Management for essential services.

What is the average KW usage?

1488 Watts

2. Present Market

How does the business operate on a daily basis?

Managers and staff in place, stock count before opening and after closing, POS systems in pace........

How are the clients attracted to the business?

National Franchise advertising electronic and Printing Media,Owner advertises in the local news papers and cell phone database of 5000 numbers

What Advertising/Marketing is carried out?

National Franchise advertising electronic and Printing Media,Owner advertises in the local news papers and cell phone database of 5000 numbers

Does the business have any contract work?

None

What competition exists?

Other Jewelry stores in the mall

What are the seasonal trends?

January Christmas sales.......Febuary Valentines sales.......May Mothers Day sales......July and August 50 % sales.......November and December Christmas sales.

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

Up to Date audited

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

Up to Date Audited

What percentage of of the business is cash/credit?

100 % is cash based, Lay Buy is offered and product is released on final payment, RCS pay within 30 days

What is the age analysis of the debtors book?

None

How could the profitability of the business be improved?

More effective advertising

Is Seller finance available and for what amount?

None, Franchise will assist with preferred finance houses

What is the payback period?

49 Months

What is the ROI?

26.32 % ROI on the first year of business

4. Staffing

What is the total staff complement?

4 Permanent Staff

Give a breakdown of staff/functions/length of service?

Manager 6 Months, Assistant Manager 3 Years, Sales consultant1 - 3 Years, Sales Consultant 2 - 3 Years

Do any receive special perks or incentives?

Commission on target Sales as follows, Manager 5 % , Assistant 3 %, Sales consultants 1.5 %

Are they on contract?

Yes Permanently Employed

Do any have management potential?

Assistant and one sales consultant

How involved is the Owner in running the business?

Over sees finances and marketing, HR, payments and advertising.......visits the stores once a week

5. Premises

When does the current lease end?

March 2012

Is there an option of renewal & what period?

Yes a Further 4 Years

What is the annual escalation %?

9 %

What are the trading hours?

Monday to Thursday 8 am to 9 pm, Fridays and Saturdays 9am to 8 pm, Sunday and Public holidays 9am to 3pm

What is the square meterage of the business?

48 m2

Is a copy of the lease available?

Yes

Do you require a licence?

Contract with the franchisor

What lease deposit and/or other surety is required?

6. Assets

Is a full asset list on file?

Yes as per balance sheet

Are any items not included in the sale?

None

What is their overall condition?

All assets are in working order and in operation daily

Do any require repairing?

No - all repairs are up to date

How have they been valued. ?

Auditors

Which assets are on lease/HP and with whom?

NA

What are their settlement amounts?

NA

Will Seller settle or Buyer to take over?

NA

Are copies of agreements available?

NA

Are they presently insured?

Shop is insured

7. S.W.O.T. Analysis

Strengths?

Brand is 35 years old, Own manufacturing of jewelry, well situated in the mall , well trained staff and service excellence..... SABS quality approved

Weaknesses?

None

Opportunities?

More effective advertising

Threats?

Economical Fluctuations

8. Reason For Sale

What is the reason for the sale?

Owner in the process of buying a engineering business

9. Conclusion

Why is this a good business?

Excellent return of investment, Good support and franchise systems in place, Franchisee won marketer of the year, Franchisee won Franchise of the year

What is the price plus stock and the net profit?

Price R 1 700 000.00 inclusive stock, Stock R 750 000.00