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  • Mandate: 33023
  • Added: 24 Apr 2019
  • AFS
  • 246

Well established business within security sector ! Own the whole supply chain

Western Cape, Cape Town
Mandate 33023
Added 24 Apr 2019
R 2,995,000* ZAR
Stock: R 270,000
Assets: R 800,000
R 115,906 ZAR
Pieter De Beer
Aldes Atlantic
Western Cape, Cape Town
Western Cape, Cape Town

Providing a stylish, yet attractive design, through manufacturing and installation - this business meets the needs of the clients ! Operating within the upper end of the market, they have delivered for over 10 years !

Well established business within security sector ! Own the whole supply chain
R 2,995,000* ZAR
Stock: R270,000
Assets: R800,000
R 115,906 ZAR

Providing a stylish, yet attractive design, through manufacturing and installation - this business meets the needs of the clients ! Operating within the upper end of the market, they have delivered for over 10 years !

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Fully describe the business's activities?
The business designs, manufacture and install a specific style of security barriers for doorways and windows to a home or business.

How long has the business been established?

How long has the owner had the business?
Since Inception - 10 years

How does the business operate on a daily basis?
Requests for Quotations are received via telephone, sales partners or the website. After quoting and orders have been confirmed, production starts.

How are the clients attracted to the business?
The elegant solutions and designs, makes this sought after. (uncommon in security trade) There is a good business reputation and return clients Marketing

What Advertising/Marketing is carried out?
Physical exhibits Online marketing & presence Sales offices and developments Ongoing relationships Advertising on products and vehicle branding

What competition exists?
It is a competitive space, but the business has become known for a superior quality product with better aesthetics and high service levels, seemingly not common in the market.

What are the seasonal trends?
Not seasonal. Like most of the building industry the last few months of the year are usually the busiest, with October and November often the busiest months.

Is the business VAT Registered?
Yes - on file

What percentage of the business is cash/credit?
No credit terms. Orders are paid for by a 70% deposit to secure the order, and a 30% final balance payable on completion.

What is the total staff complement?
13 excluding the owner

Give a breakdown of staff/ functions/ length of service?
2 management 2 installation teams 9 production Full detailed list of staff, roles and length of service will be supplied

Are they on contract?
No all permanent - All factory staff are members of the MIBFA (Metal Industries Benefit Funds Administrator), and the company contributes and equal portion to the employees monthly to their respective provident funds.

How involved is the Owner in running the business?
Daily operational management Management of sales and re-sellers All banking and payments The role would need to be filled by someone equally capable if an owner / manager is the acquirer. Manufacturing runs self-sufficiently

Is there an option of renewal & what period?
Extension on a year by year basis

What is the annual escalation %?
Negotiated each year. Previous escalation was 5%.

What are the trading hours?
07H30 – 16H00 Monday - Friday

What is the square meters of the business?
Approximately 400 square metres. Additional use of yard space and external store.

What lease deposit and/or other surety is required?
When the business entered into the lease in 2012, the company paid a R10 000 deposit. Any new lease would be negotiated with the landlord. The current premises and rate they are paying, are favorable in this sought after area.

Are any items not included in the sale?
Personal laptop and the Hilux Raider 3.0

What is their overall condition?
Assets, machines and equipment are all generally in good working order

Which assets are on lease/HP and with whom?
All machinery and factory vehicles are currently paid up. The only vehicle still being financed is the Hilux Raider that the owner use but will be excluded.

• Quality brand associated with high quality product and service delivery • Brand reputation and online presence • Ongoing relationships in large developments guarantees future orders • Good return / repeat business and upmarket clientele (Niche offering) • Superior componentry and product workmanship • Time in the market – 10 years – established business • All processes (Sales, site design & Installation) captured in manuals.

• Labour intensive manufacturing • Highly customized (this can be a weakness and a strength!) • Logistics – large amount of time required for all site visits and installations, needing vehicles on the road.

• Targeting new markets (currently don’t operate in JHB) • Diversification – product could form part of a broader range • Potential to change the business model depending on strategic direction – could be manufacture and supply only

• Copycats (generally of low quality) • Low barrier to entry • Competitive market – low cost competitors • Snags and / or guarantee claims

What is the reason for the sale?
The one owner has retired a few years ago. Due to personal energies and the owner being no longer involved (family dynamics), it has been decided to dissolve the partnership. After 10 years of building a good brand with a good reputation, both partners are keenly aware that the next stage of the business’s growth would be better placed with new energy and perhaps additional expertise.

Why is this a good business?
Large growth potential, especially in expanding a proven product to new markets. Low risk as the hard work of establishing the brand and Trademark has already been done, so return and repeat business is guaranteed. Loyal and hardworking ethic between staff. Opportunities exist in diversification or shifting the current business model.

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