Sectors / Category

Annual turnover

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  • Mandate: 31031
  • Added: 10 Feb 2021
  • AFS
  • 343

Vehicle Service Center in booming town just outside East Rand

Mpumalanga, Mpumalanga Other Areas
343
Mandate 31031
Added 10 Feb 2021
R 1,360,000* ZAR
Stock: R 10,000
Assets: R 0
R 37,218 ZAR
Frank Schrempel
Aldes Orion
Gauteng, Pretoria East
Gauteng, Pretoria East
Summary

Great location. Little competition. Loyal staff. Returning customers. Well known franchise.

Vehicle Service Center in booming town just outside East Rand
SELLING PRICE AFS
R 1,360,000* ZAR
Stock: R10,000
Assets: R0
R 37,218 ZAR
Summary

Great location. Little competition. Loyal staff. Returning customers. Well known franchise.

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please supply us with your details below

Fully describe the business's activities?
This is a franchised service centre. Up to date diagnostic equipment allows the mechanic to test and work on all vehicle types especially the newer models with built in computerised systems.

How long has the business been established?
Since 2005.

How long has the owner had the business?
The owner purchased the business in 2007. A total of 13 years to date and currently operating successfully.

How does the business operate on a daily basis?
The business has regular clients. Cars are serviced according to specified kilometers. Full check is done and client quoted for job. Spares are ordered per job. Spares are delivered daily.

How are the clients attracted to the business?
Franchisor advertises nationally. Customer Care Line where feedback can be given. Great service provided to ensure return clients and word of mouth

Does the business have any contract work?
The business does not have singed contract work but instead services FLEET vehicles for groups of Corporates such as Standard Bank, Avis, Bidvest, Mine contractors & private owned business. Auto plans, RCI ,insurance claims and RMI accredited approved dealership. Hospital vehicles, Municipality, Traffic department, Road department vehicles, are under contract and all serviced here with Fleet Merchant contract numbers that has been authorized to us.

What competition exists?
Only one of three workshops in the area. Other two are Nissan and Toyata and customers feel they are too expensive.

How did the Covid-19 pandemic impact the business turnover / daily operations?
April was closed but business back to normal from June

Is the business VAT Registered?
Yes from May 2018

Are there up-to-date Management Accounts available?
All daily sales, monthly turnovers, cost of sales, gross profit monthly are up to date. The computer system in use from the franchise keeps a good record of the figures and send to Head Office on month ends.

What percentage of the business is cash/credit?
68% Private clients 2% Insurance Claims 30% Fleet vehicles about 10% cash, the rest cards or eft.

How could the profitability of the business be improved?
Marketing can be done.

What is the total staff complement?
3 x Permanent staff members 2x Owners involved in the daily operations of the business.

Give a breakdown of staff/ functions/ length of service?
1 x Cleaner/car washer - 2 years 1 x Non Qualified mechanic - 11 years 1 x Qualified mechanic -1 year 1 x Owner 1 x Wife - Receptionist

Do any receive special perks or incentives?
Training form Head Office is ongoing. Franchise support is active and motivational. Staff are trained once monthly on specific mechanical areas such as brakes, clutches, computerised vehicles.

Are they on contract?
Staff are on labour contracts according to the Basic Condition of Employment.

Do any have management potential?
No.

How involved is the Owner in running the business?
The owners are involved in the business on a daily basis. It is not necessary for the owner to be a qualified mechanic but if would be beneficial. The Franchisor support is active and they provide ongoing training to the team. The owner has good managerial and marketing skills which are also provided by Head Office in training.

When does the current lease end?
Ongoing lease.

What are the trading hours?
Trading Hours are: Mondays to Friday: 7am to 5.00pm Saturday: 8am to 1.00 pm Closed on public holidays and Sundays.

What is the square meters of the business?
Approximately 700-800 sq/m

Is a copy of the lease available?
Yes, a copy is available from owner.

Do you require a licence?
Due to the business being a Franchise- Franchise approval must be given first. This will serve as a license. RMI-accredited dealership. RMI requirements and standards shall be adhered too and is renewed on a yearly basis. A monthly fee is paid for the membership. The owner or one of the employees must be a qualified mechanic.

What lease deposit and/or other surety is required?
The Landlord shall request 1 x months rental deposit & 1 months rental in advance.

What are the main assets of the business?
Full asset list available including diagnostic equipment.

What is their overall condition?
Assets are 9 years old but still in good working condition.

Are they presently insured?
Yes, also insured for workmanship at Outsurance

Strengths?
1. Branded Vehicle Service business with 60+ branches nationally. 2. Owner sources the best prices for part & spares. 3. Trained staff 4. Manageable business operations. 5. Services takes on average 2-3 hours. 6. Workmanship guaranteed for 6 months.

Weaknesses?
Long trading hours.

Opportunities?
The town is expanding rapidly with new mines opened including cement factory. New building for accommodation purposes have been developed. More people in town, more vehicles, more contribution towards the economy.

Threats?
None were identified.

What is the reason for the sale?
The owner are planning to relocate to Cape Town and spend their future retirement with family.

Why is this a good business?
Longstanding and repeat customers . Vehicles are a necessity and no more a luxury item. Clients would prefer to maintain their older vehicles rather than purchase a new vehicle. Prices are affordable and service is top notch. The Mechanic and trained staff adds value to the business by their expert advise to clients and suggestions for the future care of vehicle. Room for growth . Marketing can be done to get contracts with all new mines.

What is the price plus stock and the profit?
R1 360.000 including assets and stock Stock estimated an R10 000 cost value. Excluding Franchise joining fee of R95000 + Vat @15 % Training at Head Office 2-5 weeks.

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AGENCY DETAILS

Aldes Orion

2 members
10 mandates
Gauteng , Pretoria East
108 Lynburn Rd, Lynnwood Manor
Pretoria East
0081

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