Sectors / Category

Annual turnover

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  • Mandate: 32187
  • Added: 06 Jul 2018
  • AFS
  • 521

Manufacturing of Truck Bodies , Hydraulic Cranes & Underground Mining Cars

Mpumalanga, Highveld
521
Mandate 32187
Added 06 Jul 2018
R 20,000,000* ZAR
Stock: R 250,000
Assets: R 5,000,000
R 671,906 ZAR
Angela Smith
(PRINCIPAL)
Aldes Middelburg
Mpumalanga
Summary

OPTION TO PURCHASE 100% at R20 million or 85% at R17 million. Property is optional. The business specialises in the manufacturing , repairs, supply & installation of Truck load bodies , Truck mounted cranes & Hydraulic cranes. Manufacturing , maintenance & repairs of underground mining vehicles & mining equipment.

Manufacturing of Truck Bodies , Hydraulic Cranes & Underground Mining Cars
SELLING PRICE AFS
R 20,000,000* ZAR
Stock: R250,000
Assets: R5,000,000
R 671,906 ZAR
Summary

OPTION TO PURCHASE 100% at R20 million or 85% at R17 million. Property is optional. The business specialises in the manufacturing , repairs, supply & installation of Truck load bodies , Truck mounted cranes & Hydraulic cranes. Manufacturing , maintenance & repairs of underground mining vehicles & mining equipment.

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Fully describe the business's activities?
THE PURCHASER HAS THE OPTION TO BUY 100% OF THE BUSINESS. CURRENTLY 85% FOR SALE WITH THIS REPORT. The business specialises in the manufacturing , repair, supply & installation of Truck load bodies , Truck mounted cranes & Hydraulic cranes. The business is the sole supplier / agents of well known Crane suppliers Nationally. Other services include remote control units , pumps & cylinders , repairs on hydraulic drills, platforms , presses , 4&2 post lifts and backhoe's . Manufacturing , maintenance & repairs of underground mining vehicles.

How long has the business been established?
The business was initiated by the owner in 2002. the Business is operational for 16 Years.

How long has the owner had the business?
The Seller is fully operating the business for the past 16 years. BBBEE level 3. The business supports training initiatives & sponsors to institutions to acquire the BEE level.

What steps are in place to solve 'load shedding' problems?
The Business operates from out of town and for that reason has a direct supply of electricity from ESKOM. The Business also has a generator installed for unforseen power interruptions.

How does the business operate on a daily basis?
Regular Clients contact the business for manufacturing , mounting , services , part orders , new product quotations , maintenance & repairs on existing equipment. The workshop confirms a booking on availability . When equipment is on site the workshop performs an inspection on the used equipment , stripping , cleaning & noting of what requires repairing on equipment item. Client is informed. Parts are only ordered on approval of client. Repairs & Maintenance is the next stage . Requests for new builds on truck bodies are quoted and a time frame agreed for work completion.

How are the clients attracted to the business?
Manufacturing is designed & completed according to clients specifications. Quality manufacturing with warranties in workmanship , fast & efficient service. Production time is important & only the best products & parts are used . The Business does have a great track record with clients old and new. There is not advertising done , the Business in service and excellence has been the main pulling power for clients. There is not many similar business in the industry, the business financial record shows an very well operated business. Please be advised that the Business clientele consists of. Private Companies. - 58.8% Mining and Government (Based on Vendors). - 41.2%

What Advertising/Marketing is carried out?
A niche business operation who relies solely on word of mouth advertising . The conservative approach of tested & tried works in this industry. Long standing clientele and a vendor list of approximately 100 does keep the work flowing.

Does the business have any contract work?
Registered as a Vendor on majority of the mines & power stations in and around the area. The Business does not cater for much contract work for the BBEEE level is not as high for "Black Economical Empowerment" . The Seller has informed me that there is some new contracts that has been awarded to the Business and much more room for development for a BBEEE level 1 and or 2.

What competition exists?
This business is one of 23 legally registered lifting manufacturers in SA. A Niche business.

What are the seasonal trends?
The business boasts a continuous growth business trend throughout the year. A variety of products & services to maintain profitability all year around.

Is the business VAT Registered?
The business is VAT registered & compliant. Tax clearance certificate issued for the current year .

What VAT documentation is on file?
All documentation on file with the Auditor . Shall be disclosed to serious clients only .

What Balance Sheet and Income Statements are available?
AFS 2018 is available to serious buyers only .The business operates on a computerised data system recording all sales & stock items, invoicing , payments etc. A business of this enormity has an equally efficient operational system .

What percentage of the business is cash/credit?
Major income is derived through EFT payments . A few credit card payments & a handful of cash paying clients. Detailed relevant information shall be disclosed in a structured " due diligence ".

What is the age analysis of the debtors book?
Debtors book is kept to a minimum with selected private businesses approved by the owner and allowed a 60 days account. The business operates strictly on payments before goods are removed from the business premises there reducing outstanding debt . Clients are requested to pay a deposit percentage before the work begins on the premises and final payment on collection.

What is the total staff complement?
There are 40 staff members including the 15% shareholder of the business . All business transactions are above board and are acquired through expertise and services delivered by the business.

Give a breakdown of staff/ functions/ length of service?
A staff schedule with work functions , leave dates and length of service shall be disclosed in the due diligence.

Do any receive special perks or incentives?
Employees receive a bonus as a "gift from the owner" depending on the Company's performance throughout the year. At times the Owner shall decide on a "business shut down " period of a week in December for all employees, this leave is excluded from the employees annual leave.

Are they on contract?
All employees have signed contracts in line with BCEA ( Basic conditions of Employment Act) .

Do any have management potential?
The Owner of the Business Son is employed in the Business. The Owner s intention for a Sale of 85% is for his Son (The Owners son has been with the Business for years, and knows the operation of the Business in full) to remain in the Business as a 15% member in the Close Corporation. The aim hereby is to insure that the business and Purchaser has the necessary advise and input for the operation of the Business. It shall stay the Purchaser prerogative to acquire the full 100% in the Business from the outset, and a structure can be negotiated for the intellectual property and operation of the Business to be transferred with time after the Sale of the Business.

How involved is the Owner in running the business?
The owner initiated the business when he seen a gap in the industry several years ago. With his engineering qualifications and many years of working in a corporate environment a solid network was established with clients . The owner sets the example in service excellence , work ethics , values and commitment to the business , staff and clientele. The entire operation is overseen by the Owner , the workshop & manufacturing , work in and work out is his area of domain. The owner's wife and partner in the business manages the financial aspect of the business to perfection. Payments , invoicing , supervising the debtors and creditors , liaising with the Auditors and legal work. The business is a well oiled machine.

When does the current lease end?
The Property (Newly established) is owned by the Seller . Size of property 1.978 Hectares . The rental on the property shall be R 75000-00 + VAT. A lease agreement will be signed between Buyer & the Owner on terms and conditions agreed upon by both parties. The option exists to rent with the first option to purchase the property later or to buy the property with the initial acquisition. The minimum time period for lease will be fixed at 5 years . (Or longer as required)

What is the annual escalation %?
Inflation linked increases of the Lease Rental Amount Annually.

What are the trading hours?
Trading hours are : Monday to Friday : 7:30am to 4:30pm Saturdays , Sundays & Public Holidays closed . When the workload warrants working overtime to complete work on hand the team works together to finalise. A standby service is available 24/7.

Who is the Owner/Landlord?
The Property is Owned by the Seller.

Is a copy of the lease available?
No. The Owner does not have a rental agreement on his property. The seller and landlord is the same individual. An new lease Agreement shall be negotiated and completed for the Purchaser. Please be advised: That Rental lease amount on this mandate report income statement has been incorporated. No Lease Rental for the property is found on the Financial statements.

Do you require a licence?
Manufacturing & Engineering License ISO standards compulsory Agency sole rights with selected suppliers Registered trading business VAT compliant business

What lease deposit and/or other surety is required?
To be discussed with the Landlord / Owner

What are the main assets of the business?
A full Asset list is available to serious buyers only

Are any items not included in the sale?
Only personal sentimental items belonging to the Owners. Personal vehicles & possessions.

What is their overall condition?
Assets are well maintained and in a satisfactory condition.

Do any require repairing?
Ongoing repairs & maintenance to keep the business in smooth operations .

How have they been valued ?
Insurance Value

Are they presently insured?
With a reputable insurer.

Strengths?
1. Niche market 2. Established Vendor Lists & Relationships with Clients 3. Trucks & Hydraulic Cranes , Pumps & Cylinders , Variety of Products & Services 4. Manufacturing of products according to clients specifications. 5. Trained and skilled staff . 6. Knowledgeable Owner & well managed profit earning business.

Weaknesses?
Advertising & Marketing exposure can grow this business further into a Major Enterprise business. The business has not reached its full potential yet .

Opportunities?
1. DTI ( Department of Trade & Industry ) supports manufacturing businesses with funding to purchase new equipment and upgrade the business for BBBEE compliant companies. Please be advised that this does not mean Business Finance to Purchase the business with. 2. Due to the work quality , uniqueness of product & service the business is attracting larger contracts with longer terms. 3. The business is privately owned and can therefore expand its product range , standards & services.

What is the reason for the sale?
The Seller would like to retire and enjoy a quality life. The Seller shall be available for training & transfer of knowledge to the Purchaser. The Seller shall consider temporary work at the company ( if required) for a period of time for an agreed remuneration rate.

What is the price plus stock and the net profit?
R 20 million Including stock, assets & spares 100 % Purchase of Business - Selling price is R20 million 85 % Purchase of Business - Selling price is R17 million Property optional to Purchase.

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FRANCHISE DETAILS

Aldes Middelburg

1 members
12 active mandates
Mpumalanga
3 Sering Street, Kanonkop
1095

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