Fully describe the business's activities?
Gearbox repairs, maintenance, and sales, this business focuses and specialises in automatic gearboxes and has developed quite a good reputation with the public and dealerships. They also do clutch repairs and spares sales.
How long has the business been established?
The business was started in 2008.
How long has the owner had the business?
The owners bought the business in 2013.
How does the business operate on a daily basis?
This is a family run business. They have recently employed a new staff member who will be able to attend to the general management of the business and also help with the repairing of the gearboxes.
How are the clients attracted to the business?
A lot of their clients are regular customers, dealerships and other businesses. They have a good reputation in the industry and a great deal of their marketing is through word of mouth.
What Advertising/Marketing is carried out?
They have a website, social media pages and has also been doing Google Adwords. The business is very well situated and has extensive outside advertising in place.
Does the business have any contract work?
No, but there are car dealerships and workshops that use them for all there gearbox work on a regular basis.
What competition exists?
Even though there is specifically a competitor close by, there is an extremely good working relationship between the parties to each parties advantage and the benefits this relationship and proximity far outweigh any potential negative impact.
What are the seasonal trends?
Busy the whole year and peaking before the holidays.
Is the business VAT Registered?
Yes the business is a VAT-vendor and all documentation is with the accountant.
Are there up-to-date Management Accounts available?
The owner has provided me with the last year's in-house management accounts.
What percentage of the business is cash/credit?
Most of the payments are via EFT with minimum cash payments.
What is the age analysis of the debtors book?
The business requires at least 50% upfront deposit before doing any work.
How could the profitability of the business be improved?
More marketing can be done and also doing spares sales.
Is Seller finance available and for what amount?
What percentage of of the business is cash/credit
Cash - 25%, EFT - 75%
What is the total staff complement?
9 - Including the owner and her sons. They have already employed a new staff member to take the current responsibility of the sons.
Do any receive special perks or incentives?
All staff receive a basic salary.
Do any have management potential?
Yes - They have employed someone to attend to the general management of the business.
How involved is the Owner in running the business?
Give a breakdown of staff/functions/length of service
1 x Manager/Gearbox builder, 4 x Mechanics/Fitters, 1 x Workshop Cleaner, 1 x General cleaner (part time)
When does the current lease end?
Currently, the lease is on a month-to-month basis.
What is the annual escalation %?
What are the trading hours?
Mon-Fri 7:00am-5:00pm, Saturdays only if required.
Is a copy of the lease available?
What lease deposit and/or other surety is required?
One months rental.
What is the square meterage of the business
+- 500m2 Under Roof, +-500m2 - Open
What are the main assets of the business?
The owner provided us with a full asset list.
Are any items not included in the sale?
Everything will be included in the sale except one personal vehicle.
What is their overall condition?
Good, except for one lift which is not being used.
How have they been valued ?
Owners valuation used.
Which assets are on lease/HP and with whom?
Are they presently insured?
The owner has comprehensive business insurance.
Is a full asset list on file
Yes with the Seller
How have they been valued.
Replacement value/Second Hand
- Well placed area wise. -Good pricing -Good quality and great service. - Have solid commercial relationships with a substantial no of workshops and dealerships and regular clients - Trained Staff.
Huge demand in the market for gearbox repairs that are done correctly and properly priced.
What is the reason for the sale?
The owner is in the process of relocating.
What is the brokers valuation?
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Annual Turnover Amount between R 500 thousand and R 6 million