Fully describe the business's activities?
The business is a 13 year old established automotive repair business with ongoing regular private and corporate clients.
How does the business operate on a daily basis?
The business operates on a daily basis by supplying automotive mechanical services to all types, makes and models of vehicles to companies and private individuals. The business due to being operational in the Lowveld region for the past 13 years has accumulated a solid basket of client who regularly and continuously makes use of the businesses repair and maintenance services on their company and private vehicles. The business operates from a well-equipped workshop with all the necessary tools and devices to undertake major overhauls on all types and makes of vehicles. The business has some long time verbal supply service understanding with many of its clients and these he will pass to the new owner or lessee.
What is the total staff complement?
The seller himself with an assistant helper undertakes the repairs and servicing of his client vehicles with the help of assistance. Therefore this business wills only suite a qualified mechanic. The assistant has been with the business for 10 years and is very familiar with all the clientsâ vehicles that have been coming to the business for the past 10 years. He is willing to stay on if required.
When does the current lease end?
The business has a lease on its current premise for the next 2 years which has option to renew at a 10% escalation. The seller wishes to either sell or rent the business out so the option to rent the premises fully equipped from the seller is available. The seller will accept R20,000 pm (twenty thousand rand) exclude amenities for the rental of the premises and his assets. Based on the current work the business does the charge for water and electricity amount to R1700,00 pm (one thousand seven hundred rand) The seller acknowledged that the landlord will allow him to sub rent the premises on these basis.
Are any items not included in the sale?
There is a full asset list on file and all the assets as seen on the asset inventory are included in the sale with the exception of the sellerâs loose tools. These he will take with him as he is moving cross border to take up an offer he cannot refuse. There exists 2 options on this business, namely one is an outright buy, the asking price on this is R 350 000 the other option is a monthly rental of equipment and premises for R20,000( twenty thousand rand) per month exclude amenities which are around R1,700.00. If the seller rents the assets and the premises and his equipment excluding his loose tools which he will take with him cross border when he leaves to take up his new position , then he will require a security deposit of 20,000 (twenty thousand) on his assets and R10,000 (ten thousand) for the premise as well as the first months rental of both upfront of another R20,000 (twenty thousand rand) totally R50,000 payable upfront to secure this option. The monthly of R20,000 rental for both premises and equipment is due on the 1st day of each and every month for the duration of this leasing agreement period on the assets and premises.
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