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  • Mandate: 27605
  • Added: 06 Oct 2021
  • AFS
  • 168

Wholesaler of Grocery and Perishables

Western Cape, Garden Route
Mandate 27605
Added 06 Oct 2021
R 38,000,000* ZAR
Stock: R 18,000,000
Assets: R 4,000,000
R 509,113 ZAR
Noel Heath
Aldes Triumph
Western Cape
Western Cape

Long Established Wholesaler in the Southern Cape

Wholesaler of  Grocery and Perishables
R 38,000,000* ZAR
Stock: R18,000,000
Assets: R4,000,000
R 509,113 ZAR

Long Established Wholesaler in the Southern Cape

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Fully describe the business's activities?
Dry Foods, Perishable and Toiletry wholesaler operating in the greater Garden Route region.

How long has the business been established?
14 Years

How long has the owner had the business?
Since Inception

How does the business operate on a daily basis?
A large client base who visit and purchase their own stock. Deliveries are offered on a daily basis. There is a fully functional on-line store in place.

How are the clients attracted to the business?
Comprehensive product range with perishables having been added in last few years. Broad Sheets Long established clientele Loyalty program

What Advertising/Marketing is carried out?
Regular promotional activities and broadsheets.

What are the seasonal trends?
Most businesses in the Garden Route region experience a drop off in winter, but this is offset by the high sales over the holiday periods due to the influx of holiday makers.

Is the business VAT Registered?

What VAT documentation is on file?
As Required

Are there up-to-date Management Accounts available?

What Balance Sheet and Income Statements are available?
As and when required

How could the profitability of the business be improved?
There are various other opportunities but the Owner remains very focused on the development strategy that is in place. Range extension with the introduction of perishables has impacted very well on the profitability.

What is the total staff complement?
Circa 45

Give a breakdown of staff/ functions/ length of service?
Approximately 10 staff have long service

Are they on contract?
Contracts renewed on an annual basis.

How involved is the Owner in running the business?
The Owner is involved in the business on a daily basis as the General Manager, supported by a family member in the administrative function.

When does the current lease end?
The Owner will retain the premises and offer the Buyer a favourable market related lease. There will be a solar panel levy which is much more advantageous than the metered electrical consumption.

Is there an option of renewal & what period?
The Seller owns the building and will offer a lease with renewals subject to negiation.

What is the annual escalation %?
Market related in the region of 8% per annum.

What are the trading hours?
Monday to Friday: 08-00 am to 5-00 pm. Saturday: 08-00 to 1pm.

What is the square meters of the business?
Approximately 2,000 square meters of which 1,448 square meters are on a concrete base. Most of the racking is high level hence the concrete base.

Who is the Owner/Landlord?
The Seller is also the building owner.

Is a copy of the lease available?
A lease will be drawn up for the Buyer.

What lease deposit and/or other surety is required?
Subject to negotiation.

What are the main assets of the business?
Fixtures and Fittings Computer System Point of Sale system PABX / Telephone System Trolleys and Pallet Jacks Baskets

Are any items not included in the sale?
The following items are NOT included in the Selling Price: - Fridges and Freezers - Forklifts - Solar System - Vehicles not included but may be negotiated

What is their overall condition?
All the racking etc is in good condition.

Do any require repairing?
Ongoing maintenance in this kind of business is required but no significant repairs are required.

How have they been valued ?
Owners second hand value. It is estimated that replacement value is in the region of R5 Mill.

Are they presently insured?

Long established with loyal client base On-Line store is up and running and fully functional Solid distribution client base Location Range offered Loyalty program

Stock management always needs ongoing attention. The Buyer should ideally have strong retail experience, be energetic with the passion and drive to ensure the ongoing profitability and success of this business.

Range Extensions Increased distribution

There are no known threats to this business.

What is the reason for the sale?
The Owner has proven that they are capable of Owning and Managing the business very profitably and successfully with solid customer base and growth. However he feels that the time has come to find somebody who is younger with the same drive and ambition as he has but to take over and grow the business to a higher level. This is part of the succession plan and the Seller is prepared to oversee the transition as is required to ensure the that business is not negatively impacted by the handover process.

Why is this a good business?
This business is long and well established and a solid and efficient staff structure is in place. Year on year sales indicate the strength of the business. Strong supplier agreements are in place. Good cash flow ensures continuity of supply to the customers are very competitive market related pricing

What is the price plus stock and the profit?
The Selling Price exclusive of stock but including assets is R20,000,000...but excludes fork lifts, vehicles, solar panels, freezers and fridges and the building. Assets are currently in the region of R5Million to replace. Stock on hand is in the region of R15 Million but sold by a separate agreement Annual profit is in the region of R3+ Million....impacted positively by rebates and discounts due etc. PLEASE NOTE THAT PROOF OF FUNDS WILL BE REQUIRED PRIOR TO ANY FINANCIAL INFORMATION BEING SHARED.

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