Sectors / Category

Annual turnover

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  • Mandate: 33355
  • Added: 03 Jan 2020
  • AFS
  • 334

This Business opportunity does not come around often. It is a Manufacturer and supplier of Medals and Trophy's to any Sports event and/ or Company that engages in rewards for their Staff or Participants in these events. It also does on-site Embroidery.

Gauteng, Johannesburg
334
Mandate 33355
Added 03 Jan 2020
R 16,000,000* ZAR
Stock: R 2,600,000
Assets: R 3,578,520
R 405,913 ZAR
Andre Botha
(PRINCIPAL)
Aldes Pro
Gauteng
Summary

Manufacturer and Supplier of Medals and Trophy's. This Business Manufacturers and supplies Medals and Trophies to any Sports event and/ or Company that engages in rewards for their Staff or Participants in these events. It also does on-site Embroidery. Its customer base consist of organizers of major well known annual events that are familiar to all South Africans. Although it has been around for over 20 years, the potential is endless and there are huge growth opportunities in this market.

SELLING PRICE AFS
R 16,000,000* ZAR
Stock: R2,600,000
Assets: R3,578,520
R 405,913 ZAR
Summary

Manufacturer and Supplier of Medals and Trophy's. This Business Manufacturers and supplies Medals and Trophies to any Sports event and/ or Company that engages in rewards for their Staff or Participants in these events. It also does on-site Embroidery. Its customer base consist of organizers of major well known annual events that are familiar to all South Africans. Although it has been around for over 20 years, the potential is endless and there are huge growth opportunities in this market.

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Fully describe the business's activities?
This Business has been operating since 1996, Manufacturing and supplying any medal and Trophy that one can possibly think of, being used for events such as Running, Cycling, swimming, Racing and every other sports event in the Country. Major banks or companies obviously also use their services for events such as staff awards or any event that they might sponsor.

How long has the business been established?
Since 1996

How long has the owner had the business?
Since 1996

How does the business operate on a daily basis?
This Business has been operating since 1996. It has a large customer base that it has built up over the years but also has daily walk in clients requesting product. It literally manufactures Medals, Vehicle badges, Key rings, Trophy's etc etc from scratch on site. The Business has designers on-site where a customer would sit down and explain his idea, these designers will present the customer with proof of concept, and if agreed the process starts from there until we end up with a finished medal, or trophy etc etc. It is possibly the 2nd or 3rd largest supplier in the country.

How are the clients attracted to the business?
It has built up a good and loyal clientele over the years.

What Advertising/Marketing is carried out?
The business does have a website . It has Internal sales people who take orders as well as Agents in certain provinces.

Does the business have any contract work?
It does not necessarily have contract work but good sustainable repeat business.

What competition exists?
There is competition in the market but this is possibly the 2nd largest company of its sort in the Industry.

What are the seasonal trends?
May, June and July is fairly quiet, with August to December being its busy months.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All up to date

What Balance Sheet and Income Statements are available?
February 2019

What percentage of the business is cash/credit?
It is mostly a Cash/ COD business with a small amount of Debtors.

How could the profitability of the business be improved?
In many ways which will be obvious once one has viewed the operation and the product it manufactures for various Industries are endless and as events grow in the country.

Is Seller finance available and for what amount?
No, but it is understandably that a potential buyer might need to finance a portion (not all) of the purchase price through either Banks, NEF etc etc.

What is the total staff complement?
It has a staff compliment of 40 and sometimes additional casuals depending on workload.

Give a breakdown of staff/ functions/ length of service?
To be discussed with qualified buyers

Do any receive special perks or incentives?
To be discussed

Are they on contract?
Yes, most are but can vary depending on the workload if additional heads needs to be brought in over busy periods.

Do any have management potential?
Yes

How involved is the Owner in running the business?
The owners are involved most of the time but does leave the business for lengthy periods to travel.

When does the current lease end?
The seller has a year to year lease and is easily renewable as the Landlord is a private individual.

Is there an option of renewal & what period?
Yes, depends on the new owner, but available for whatever period is decided on.

What is the annual escalation %?
TBA

What are the trading hours?
Mondays to Fridays office hours, but enough work is available should one want to open on a Saturday.

What is the square meters of the business?
1350 sqm

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
2 months

What are the main assets of the business?
Many many moulds, lots of manufacturing equipment, design machines, huge printers, a large showroom full of designs, embroidery machines, one vehicle etc etc etc

Are any items not included in the sale?
Yes there is a property and some vehicles on the B/S that are not included but removed from the numbers.

What is their overall condition?
Good

Do any require repairing?
Not for new but the seller will explain the general maintenance requirements

How have they been valued ?
By the seller/ accountant

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Yes they are Insured

Strengths?
Long in existence Not major competition Fairly unique in what it does. Great profitability

Weaknesses?
Can get very busy at times and short notice to complete certain jobs which could lead to additional working hours

Opportunities?
Many as the opportunities are endless and sustainable.

Threats?
None perceived

What is the reason for the sale?
The owner and his wife are pass retirement age, and all of their children have recently emigrated, so the latter possibly on the cards for them. The seller however is prepared to be around for a while to ensure a decent handover period.

Why is this a good business?
It controls the full supply chain and can therefore to an extent control profitability/ margins. It is not your average business and difficult to duplicate. It supplies to major events and major companies in the Country. The operation needs to be seen in order to understand the various processes involved.

What is the price plus stock and the profit?
R16m all inclusive. Profitability shown is an EBITDA number and before Directors emoluments and a Professional fee of 198k(To be advised on this issue) Please note that a refundable deposit of R1m will be required before the buyer, being given access to the business in order to perform a due diligence. Viewing however will be allowed to qualified buyers prior to performance of due diligence in the business. Proof of finance or deposit available, and a clear indication of how the business is to be financed/ (should financing be required) is essential before viewing by potential buyers. 8 Months EBITDA up to October 2019 indicates a profit of R2,7m thus far (November and December being the 2 most profitable months during the year in the industry, are excluded from the aforementioned number)

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FRANCHISE DETAILS

Aldes Pro

2 members
20 active mandates
Gauteng
Malcolm Road
0000

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