Fully describe the business's activities?
Manufacture and supply of mining equipment. Wheels are the basic product of manufacture other products related to mining are sourced locally and internationally. The clientele includes local as well as international mining companies. The company has secured mining vendor numbers which are very difficult to obtain.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
There are sales representatives in each provides calling on the mines on a regular bases. Factory produces for orders only. The business carries a two to three months supply of spares.
How are the clients attracted to the business?
Calling on customers and giving the service required. Mining vendor numbers are in place with a large group of different companies.
What Advertising/Marketing is carried out?
None/Not necessary because of regular business.
Does the business have any contract work?
Some projects could last for three to four months.
What competition exists?
There seems to be very little, on the manufacturing side there seems to be more.The business focuses on customer relations, which is very important in this industry.
What are the seasonal trends?
Related to the mine budget.It is not related to seasonal trends.December period seems to be busier.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business continued as normal, the mines where closed but where doing allot of maintenance work which led to continues income for the business.
Is the business VAT Registered?
What VAT documentation is on file?
Up to date VAT documentation is available
Are there up-to-date Management Accounts available?
Yes up to date management accounts are availible
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Customers pay within 30 to 60 days. No bad debts, you have security in on going jobs.
What is the age analysis of the debtors book?
30 to 60 days
How could the profitability of the business be improved?
More salesmen, cover more areas such Kwazulu Natal,Northern Free State ,contract to Zambia,Ghana,East and North Africa and Angola. Big scope for maintenance contracts.
Is Seller finance available and for what amount?
What is the total staff complement?
26 staff members
Do any receive special perks or incentives?
Sales reps reach target get a bonus, other staff accordingly.
Are they on contract?
They are on monthly contracts.
Do any have management potential?
How involved is the Owner in running the business?
Give a breakdown of staff/functions/length of service?
Bookeeper, workshop manager ,receptionist ,Buyer ,accountant to supervise bookeeper. two salesmen ,two boiler makers ,two welders ,fitter and turner ,five qualified assistants ,tea lady and cleaner ,truck driver.
When does the current lease end?
Is there an option of renewal & what period?
What is the annual escalation %?
Plus minus 10%
What are the trading hours?
7am to 4pm ,office staff 8am to 5pm There is a lot of overtime work and some times on weekends.
What is the square meters of the business?
1390 Square metre.
Is a copy of the lease available?
To qualified buyers
What are the main assets of the business?
Vehicles Engineering machinery office equipment
What is their overall condition?
Machines are regularly serviced.
Do any require repairing?
They are serviced on a regular basis
Are they presently insured?
Is a full asset list on file?
To qualified buyers
Estblished business with long standing customer relationships
Owners are getting old.
Open sales policy and vendor list, good reputation ,customer relationship.
Products got to be 100% ,lives depend upon the quality of products.
What is the reason for the sale?
Retirement of major shareholders and death of one shareholder.
Why is this a good business?
The business has a long track record of generating profits even through the 2020 Covid-19 pandemic.
What is the price plus stock and the profit?
R12,000,000.00 (51% shares)
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