Sectors / Category

Annual turnover

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  • Mandate: 33194
  • Added: 12 Aug 2019
  • AFS
  • 959

Fencing Company with Strong Reputation

KwaZulu-Natal, Durban
959
Mandate 33194
Added 12 Aug 2019
R 1,660,000* ZAR
Stock: R 10,000
Assets: R 364,540
R 88,115 ZAR
Mike Boustred
Aldes Supreme
KwaZulu-Natal
KwaZulu-Natal
Summary

This company is a well known brand name in the fencing world with a reputation for for a neat installation and good service.

SELLING PRICE AFS
R 1,660,000* ZAR
Stock: R10,000
Assets: R364,540
R 88,115 ZAR
Summary

This company is a well known brand name in the fencing world with a reputation for for a neat installation and good service.

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Fully describe the business's activities?
The business installs all types of fencing in the domestic and commercial markets.

How long has the business been established?
The business was established in 2008.

How long has the owner had the business?
The owner has been with the business since inception.

How does the business operate on a daily basis?
The company is contacted for quotations. Once these are accepted, the materials are purchased and installed on site.

How are the clients attracted to the business?
A limited amount of online advertising is done but the majority of work is obtained from word of mouth recommendations.

What Advertising/Marketing is carried out?
Limited online marketing is done in addition to the companies website.

Does the business have any contract work?
Contracts are obtained and executed in short timespans. There are no long term contracts in place.

What competition exists?
There are numerous other contractors in the area but none with the same reputation for quality workmanship.

What are the seasonal trends?
There are few seasonal trends apart from the normal Christmas shutdown.

Is the business VAT Registered?
The business is VAT registered.

What VAT documentation is on file?
All documentation is available.

Are there up-to-date Management Accounts available?
Management Accounts are available.

What Balance Sheet and Income Statements are available?
Financial Statements to the end of Feb 2019 are available.

What percentage of the business is cash/credit?
The business is mostly done on a cash basis with customers paying a 50% deposit and the remainder on completion of the job. Most payments are done via EFT.

What is the age analysis of the debtors book?
There is no debtors book.

How could the profitability of the business be improved?
The fencing business could be improved with more advertising however the steel manufacturing of mostly fencing related products has extensive possibilities for expansion.

Is Seller finance available and for what amount?
Seller financing is not available.

What is the total staff complement?
The total compliment of staff is 12.

Give a breakdown of staff/ functions/ length of service?
1 Site Manager - 2016 7 Labourers - Various (1-10 years) 2 Steel Fabricators - 2016 1 Office Manager (Owners Wife) - 2008

Do any receive special perks or incentives?
None

Are they on contract?
They are all on normal working contracts.

Do any have management potential?
While there are members of staff with management potential, no-one could run the business.

How involved is the Owner in running the business?
The owner is involved daily in the running of the business and does all of the quoting.

When does the current lease end?
The current lease ends in 2 years but can be renewed. There are plenty of premises around that would be suitable.

Is there an option of renewal & what period?
The lease can be renewed for a further 2 years at a time.

What is the annual escalation %?
8%

What are the trading hours?
7:30 - 4:30 Monday to Friday

What is the square meters of the business?
The business occupies 100 square meters

Who is the Owner/Landlord?
Evernett Property

Is a copy of the lease available?
Yes

Do you require a licence?
No special license is required.

What lease deposit and/or other surety is required?
1 months deposit is required with surety.

What are the main assets of the business?
The main assets of the business are 2 vehicles, a trailer, workshop machinery and office furniture, computers etc.

Are any items not included in the sale?
All items used in the production of profit are included in the sale.

What is their overall condition?
All items are in working condition.

Do any require repairing?
All items are maintained in working order.

How have they been valued ?
At second hand replacement values.

Which assets are on lease/HP and with whom?
There are no assets on lease.

What are their settlement amounts?
NA

Will Seller settle or Buyer to take over?
NA

Are copies of agreements available?
NA

Are they presently insured?
All assets are insured.

Strengths?
The strong reputation for quality workmanship is the major strength of the business. It produces a continual stream of new orders.

Weaknesses?
The fencing market is well traded however there is always room for a quality installer offering good service.

Opportunities?
The major opportunity is the manufacture of steel items, largely for the fencing industry such as posts or electric fencing bars. This allows flexibility over the standard products out in the market. The company has also started doing general steel manufacturing for clients outside of the fencing industry and this area of the business should continue to show substantial growth.

Threats?
The only obvious threat comes from more customers requiring BBEEE status which the company does not currently have. This is however unlikely from domestic customers.

What is the reason for the sale?
The owner is emigrating.

Why is this a good business?
Offering both stability and opportunity of expansion, this business is well priced as the owner is emigrating.

What is the price plus stock and the profit?
The price of the business is R 1,650,000 plus stock of approximately R 10,000.

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FRANCHISE DETAILS

Aldes Supreme

2 members
20 active mandates
KwaZulu-Natal
19 Reims Village, Le Domaine Estate
3626

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