Fully describe the business's activities?
Merchant of scrap metals, supplier of specialized welding supplies and LPG Gas
How long has the business been established?
Established 1994 - 25 years
How long has the owner had the business?
Since 2003 - 16 years
How does the business operate on a daily basis?
Manager in place to open and run the business, owner oversees the financial side of the business and places orders for stock. Staff in place controlling stock and maintaining the general running of the business
How are the clients attracted to the business?
Business has been established for many years attracting clients from the surrounding area.
What Advertising/Marketing is carried out?
Well established and on-going relationship, clients are offered good market related priced for their scrap metals. Word of mouth, business deals with traders and brokers.
Does the business have any contract work?
What competition exists?
There are other dealers in the area however not as established and central as this business.
What are the seasonal trends?
Constant throughout the year.
Is the business VAT Registered?
What VAT documentation is on file?
Up to Date, available to serious enquiries during due diligence stages.
Are there up-to-date Management Accounts available?
Up to Date and available
What Balance Sheet and Income Statements are available?
Up to Date.
What percentage of the business is cash/credit?
95 % Electronic, 5% Cash
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Business has been showing a solid growth, very much market related business, geared to the economy. Stock control and sorting of product will increase the Nett profits. Better Cash flow & exporting to the direct market.
Is Seller finance available and for what amount?
Seller will consider a small percentage 10-15% over a short term 12 - 18 Months.
What is the total staff complement?
16 Staff excluding owner
Give a breakdown of staff/ functions/ length of service?
1 Manager, 1 Admin & 14 staff
Are they on contract?
Do any have management potential?
Already in place
How involved is the Owner in running the business?
30% of the time.
When does the current lease end?
Is there an option of renewal & what period?
Yes a further 3 years available
What is the annual escalation %?
What are the trading hours?
Monday - Friday 7:30 - 16:00 Saturday 7:30 - 12:00
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
Second Hands Goods & Recycling licence
What lease deposit and/or other surety is required?
1 months rental R 12 000.00
What are the main assets of the business?
Excavators, bale press, weigh bridge & small vehicles.
Are any items not included in the sale?
All included as per assets register.
What is their overall condition?
All well kept and maintained - working condition.
How have they been valued ?
Depreciated market related values.
Which assets are on lease/HP and with whom?
Doosan excavator & Bale press
What are their settlement amounts?
Excavator R 800 000.00 & Bale Press R 500 000.00
Will Seller settle or Buyer to take over?
To be negotiated and discussed depending om the structure of the transaction.
Are copies of agreements available?
Are they presently insured?
Full comprehensive insurance in place.
Business has been established well and been trading for 20 years plus, solid management team in place, showing steady growth and solid Nett profits, well situated and accessible, solid network in place with current suppliers and clients.
Need cashflow and steel market price related.
Impliment better cash flow & Supply to the direct market for higher Nett profits.
Business is directly related to the economy.
What is the reason for the sale?
Seller is moving into another business sector.
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