Fully describe the business's activities?
Speciality aluminium supplier, manufacturer and installers within the Garden Route. Preferred supplier to the housing industry from premium sector to large complexes and much work as specified by architects. The business specialises in all the aluminium requirements for the housing, commercial and building sectors.
How long has the business been established?
Has been trading for over 30 years and as such is well entrenched in the market.
Describe the nature of the business
Manufacturing and installation of doors, windows & shopfronts for commercial, industrial and domestic markets. Suppliers of various type of doors and windows, shopfronts, balustrades, frameless glass and bespoke items.
How does the business operate on a daily basis?
A well structured staff infrastructure in place and each staff member has their own specific area of responsibility.
How are the clients attracted to the business?
Clients are attracted to this business through a number of ways: - Repeat business since they have been trading for so many years and known for their high service levels. - Specified by architects as a favoured supplier to the commercial and housing sectors. - Owner is well versed in the aluminium industry and the business is known for their exceptional service levels. - Favoured supplier for many developers in the housing sector in all of the local towns. - Known for their quality of work among the premium housing sector such as the golf estates, and their expertise in working with aluminium. - Preferred suppliers to well known developers.
What Advertising/Marketing is carried out?
Little marketing is necessary as the business maintains pipeline orders for months in advance. On distribution list of a large number of developers, builders and architects. Estimators Website Instagram
Does the business have any contract work?
No, but they have numerous clients who have remained with them over the years. Most of the major developers in the region make use of their services.
What competition exists?
There are other similar businesses but very few are as well entrenched or operating at the same level as this one. They are among the top few in the region.
What are the seasonal trends?
Seasonality is not very predominant in this business despite it being in the Garden Route.
Define the nature of this Business
This is a service level operation with up to date technology and high quality of product within the aluminium sector. As such they quote accordingly and get the work as they are well known for their reliability and after sales service; as well as their quality of workmanship.
Is the business VAT Registered?
What VAT documentation is on file?
All up to date as and when required.
Are there up-to-date Management Accounts available?
Yes, the accounting aspect is kept up to date and signed financials readily available.
What Balance Sheet and Income Statements are available?
Up to date as and when required.
What percentage of the business is cash/credit?
The business carries accounts for select clients only. An age analysis will be shown to qualified potential Buyers. There is also a cash aspect to this business which impacts positively on the cash flow and profitability. 60% deposit is paid before commencement of a project.
What is the age analysis of the debtors book?
Less than 10% over 60 Days.
How could the profitability of the business be improved?
The pipeline orders justify putting another installation team on the road but a proper viability and assessment with a business plan needs to be completed first. Since both Owners are active in the business, a restructure of management by a new Owner could impact the profitability positively. Entering into supply of high profit products.
What is the total staff complement?
23 Permanent staff members excluding the Owners.
Give a breakdown of staff/ functions/ length of service?
A well structured staff structure is in place covering all aspects of the business. The factory manager oversees all of the production, and there are 4 structured installation teams in the field. Both Owners are active in the business on a daily basis.
Do any receive special perks or incentives?
All staff get an annual bonus. The December BIBC holiday fund pays the December salaries.
Are they on contract?
Normal conditions of employment. Staff are members of the bargaining council (BIBC) and RMA (for any labour related injuries). The business belongs to an employer organization which can assist with any labour related issues.
Do any have management potential?
Yes, there are employees in place who could be considered for promotion.
How involved is the Owner in running the business?
The Owners are a major part of the success of this business and set the tone in terms of relationship building, service levels and quality of manufacture, as well as after sales service. The Owners take responsibility for the overall general management of all aspects of the business. The standards of all aspects of this business, from quoting, procurement, production, distribution and installation are all overseen with attention to detail by management. Adequate resources in place to assist and perform all functions.
When does the current lease end?
Is there an option of renewal & what period?
Negotiable in terms of 3 years.
What is the annual escalation %?
What are the trading hours?
Normal factory hours, but overtime worked as and when required.
What is the square meters of the business?
908 sq m Main Area; 475 sq m Outside; 243 sq m Loading area.
Who is the Owner/Landlord?
Details will be made known when necessary.
Is a copy of the lease available?
Do you require a licence?
The following licenses are in place: - AAAMSA (membership) - Pastel - Starfront ( Design Package) - RMA (Medical Aid) Membership This business is a member of the BIBC (Building Industry Bargaining Council) Employers Council. MS - Office Anti Virus packages.
What lease deposit and/or other surety is required?
To Be Advised
Are the current premises suited to this business?
The premises are ideal, centrally situated, with highly visible on a busy street. Adequate off street parking. The work area and storage are suited to the work load and the loading bay and storage for vehicles overnight is adequate. The premises also has a spacious reception and an adjacent row of offices which ensures privacy. Central location is an advantage as close to most amenities.
What are the main assets of the business?
Vehicles Manufacturing Equipment Computer systems and equipment Storage and other manufacturing requirements
Are any items not included in the sale?
2 x personal laptops may not be part of the transaction. One or two other personal affects which will be pointed out to an interested Buyer.
What is their overall condition?
All assets are well maintained and in good working order.
Do any require repairing?
How have they been valued ?
Owners second hand values
Which assets are on lease/HP and with whom?
To be advised
What are their settlement amounts?
To be advised
Are copies of agreements available?
Are they presently insured?
Business established over 30 years and is a major role player in this industry. Known for their quality of product and after sales service and commitment. Well designed systems being utilised to ensure cost efficacy. Order-book significant forward orders with pipeline months in advance. Well structured, experienced staff, satisfied clients, and trading very profitably. With the incremental development in this area, this business will show ongoing growth and development for the foreseeable future. Well established work relationship with various role players in the industry. Stable work force with very little movement year on year.
Reliance upon semi-skilled general workers. Ongoing training is a prerequisite.
There are numerous development projects in the region that this business will be involved with. This region of South Africa is booming in the housing sector and as such the work is ongoing and lucrative with no foreseeable slow down. The business can be re-structured to increase the output and increase in production as they have the necessary equipment, space etc. A focused and active Owner suited to this industry will maintain strong year on year growth if business principals are maintained. Entering into market with supply of products with high profit margins.
Apart from new players entering the market from time to time, there are no obvious threats to this business.
What is the reason for the sale?
There are personal reasons for the Owners to reluctantly place the business onto the market, even though it is a top performing business within the Garden Route.
Why is this a good business?
This is an outstanding business with premium market share in the Garden Route and trades successfully year on year, with growth and excellent development opportunities.
What is the price plus stock and the profit?
The price is R4,800,000 and average manufacturing stock on hand in the region of R400K. The profitability is over R1, 5 Million per annum. Orders in pipeline are often equivalent to a few months forward cover.
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