Fully describe the business's activities?
Manufacturer of lawn mowers, fire fighting equipment and related items, included in the price is everything to produce mainly in-house a range of lawnmowers both electric and motor driven. The sale includes work in progress and stock, work in progress is approximately for 700 lawnmowers. The range is comprehensive and are sturdily built to cope with South African conditions, compared to some imported models that are not very suitable in South Africa. The fire fighting equipment is manufactured mainly in winter and lawnmowers are a summer product. The lawnmowers are exported to SADC countries as well as India and other countries
How long has the business been established?
How long has the owner had the business?
The family have owned the business since inception
What steps are in place to solve 'load shedding' problems?
There is a generator in place to run computers etc, but the area they are in they have few problems
How does the business operate on a daily basis?
The owners and his son are involved in the business but there are senior staff in all key positions
How are the clients attracted to the business?
The brands are well known supplying dealers and co-ops together with branding to their specifications for various engine manufacturers
What Advertising/Marketing is carried out?
They have a webpage and word of mouth
Does the business have any contract work?
They manufacture for various companies as and when repeat orders are received
What competition exists?
There are other manufacturers of lawnmowers and there are imported products, the firefighting equipment is manufactured for local co-ops and farmers
What are the seasonal trends?
Lawnmowers are generally a summer product and firefighting equipment manufactured for the dry winter season
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The business being sold is a division of a larger company and expenses and sales figures have been supplied
What percentage of the business is cash/credit?
Export orders are prepaid and they run accounts for most of the local customers
How could the profitability of the business be improved?
By increasing sales the business needs a dedicated sales team, the market for lawnmowers in South Africa is estimated at between 100 to 150 000 per annum. there is also great opportunity to import and market other related products such as brush cutters, chain saws etc. to augment the range
Is Seller finance available and for what amount?
What is the total staff complement?
11 staff excluding the owners, they also employ casual staff as required for assembly during busy periods
Give a breakdown of staff/ functions/ length of service?
The staff are mostly long serving, between 2 years to 25 years, with two of the admin staff at or over retiring age
Do any receive special perks or incentives?
Are they on contract?
Yes all permanent staff are on contract
Do any have management potential?
No, but there are managers or supervisors in all key positions
How involved is the Owner in running the business?
When does the current lease end?
The premises are owned by the sellers and is available for sale as a separate transaction and is valued at R10 million
Is there an option of renewal & what period?
The owners would like to sell the property with the business, normal rates for the area would be over R90 000 per month, however the owners would be prepared to accept a rental of R50 000 per month for the first two years, rising thereafter
What are the trading hours?
Monday to Thursday 07h30 to 16h30 Friday to 15h30
What is the square meters of the business?
The building is situated on 4366 square metre stand with building coverage of 3228 square metres
Who is the Owner/Landlord?
The sellers own the property
Do you require a licence?
What lease deposit and/or other surety is required?
To be negotiated
What are the main assets of the business?
A full valuation is on file, replacement cost of over R37m working value of over R11m
Are any items not included in the sale?
Full asset list is on file
What is their overall condition?
Good working order
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
Switchboard and camera system on lease
What are their settlement amounts?
All assets are fully paid for other than the two items mentioned above
Will Seller settle or Buyer to take over?
Buyer to carry on with leases/rentals
Are copies of agreements available?
Are they presently insured?
Long established well known manufacturer of quality products with their own brand names and manufacturing for other clients to their specifications
Marketing and sales, the business does not currently have a sales force
Ideal opportunity for an existing entity to add these products to their own, alternatively a marketing driven entrepreneur to take this business to new heights, the market is large for their current products and new products can be added to the line
Only the economy
What is the reason for the sale?
The father is 71 years old and his son is involved in a new unrelated venture
Why is this a good business?
Great opportunity to take this profitable business and grow it exponentially
What is the price plus stock and the profit?
Selling at R6.2m including stock and WIP
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