Fully describe the business's activities?
A large, retail hardware, outdoor, garden, craft and DIY franchised store, conveniently situated on the fringe of the CBD. A big, well known, national brand.
How long has the business been established?
The business has been established for 23 years. It relocated into bigger premises in 2008 from where it continues to trade.
How long has the owner had the business?
How does the business operate on a daily basis?
This is an owner controled, but family managed business. The owner and his wife are looking to retire. The son-in-law who co-manages the store with the owner would stay on as manager.
How are the clients attracted to the business?
This is a destination store. It is very well established with a loyal customer base. It has a good reputation for service and knowledge. It is conveniently situated. There are regular nation brand promotions as well as advertising. Locally, pole ads are used to promote the business.
What Advertising/Marketing is carried out?
Pole ads, national marketing and promotions, power ads on CCTV and newspapers. Internet.
Does the business have any contract work?
What competition exists?
There are numerous building hardware stores in the area, however there is very limited opposition to DIY.
What are the seasonal trends?
August to January sees a peak in trading particularly around the festive season.
Is the business VAT Registered?
What VAT documentation is on file?
Vat returns are on file for perusal by approved buyers.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
AFS to February 2019 are on file.
What percentage of the business is cash/credit?
About 90% of the business is cash, with the balance on 30 day account.
What is the age analysis of the debtors book?
Debtors book is about R300k. Mostly on current.
How could the profitability of the business be improved?
Further investment in stock needs to be made. Stock range can be improved. More opportunity of could be taken of supplier promotions. Extended trading hours.
Is Seller finance available and for what amount?
What is the total staff complement?
18 permanent staff, with 3 casuals as required. The owner and his wife are full time in the store.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
The owner and his wife are fully involved in the day to day running of the store.
When does the current lease end?
A new lease is being negotiated with the landlord. This will be available for perusal by approved potential buyers.
What are the trading hours?
Monday to Friday 08hr00 to 17hr00 Saturday 08hr00 to 13hr00 Sunday 08hr30 to 12hr30
Is a copy of the lease available?
A new lease is in the process of being negotiated.
Do you require a licence?
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
The seller has valued them at second hand replacement value.
Are they presently insured?
Is a full asset list on file?
A national brand franchise. A well positioned store with good access and parking conveniently situated. Turnover growing all the time. Limited opposition.
A bit under-stocked. Maybe a bit under capitalized.
There is a rapidly urbanizing population around the area so growth potential is great.
Normal trading risks but nothing obvious.
What is the reason for the sale?
The owner is looking to retire.
Why is this a good business?
The business relocated during the financial meltdown in 2008. It survived that and has seen steady growth since. With more stock and expanded ranges, the growth potential is assured.
What is the price plus stock and the profit?
Business R3 000 000 Stock R 3 500 000 (estimated) Total R 6 500 000
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