Fully describe the business's activities?
The business specialises in providing industrial cleaning and maintenance services which includes industrial high pressure cleaning, siphoning of pollutants, dust extraction, hazmat cleanups, servicing and cleaning of cooling towers, furnaces, boilers, weigh bridge scales, baltimores, sumps, filter presses, conveyors etc. In addition, they offer industrial equipment hire with operators, on a short term rental basis.
How long has the business been established?
The owners started the business 10 years ago.
How does the business operate on a daily basis?
While there is a fair amount of ad hoc work, the business mainly has fixed contracts in place with its clients, and projects are scheduled and carried out in accordance with the scope of work detailed in the agreements.
What Advertising/Marketing is carried out?
Very little. The business does not need to advertise.
Does the business have any contract work?
Yes, the business has recently concluded a new 5-year contract with its main client, who contributes around 95% of the revenue generated.
What are the seasonal trends?
Although the business is extremely active all year round, winter is busier due to the various planned maintenance shutdowns of clients.
Is the business VAT Registered?
Yes, the business is a registered VAT vendor.
Are there up-to-date Management Accounts available?
The latest management accounts are available to approved buyers.
What Balance Sheet and Income Statements are available?
The Annual Financial Statements in respect of the year ended February 2019 are on file.
What percentage of the business is cash/credit?
The business negotiates credit agreements with its major clients.
What is the age analysis of the debtors book?
No longer than 60 days.
How could the profitability of the business be improved?
There are numerous opportunities which will be discussed with approved buyers.
Is Seller finance available and for what amount?
No. The sellers will only consider an outright sale.
What is the total staff complement?
The company employs 25 well trained, permanent staff members. During busy periods, additional staff are employed on a fixed contract basis.
Are they on contract?
There are valid contracts in place with all employees.
When does the current lease end?
The property is owned by the sellers, the purchase of which is optional and is not included in the selling price.
Is there an option of renewal & what period?
Ideally the sellers would like to sell the property along with the business, however, a lease agreement can be negotiated.
What are the trading hours?
The business operates from 6am to 4pm from Monday to Friday, however, operating hours do vary from time to time.
What are the main assets of the business?
The main assets include heavy duty equipment and machinery, high pressure washers, vehicles etc. A full inventory of the assets is on file.
What is their overall condition?
Excellent - the assets have been extremely well maintained.
How have they been valued ?
The assets have been valued by the owner at current second hand market value.
Which assets are on lease/HP and with whom?
All the assets are unencumbered.
Are they presently insured?
The assets are all insured.
This is a well established and extremely profitable business that has shown consistent growth year on year. Highly competent and well trained staff have been with the company for years. Guaranteed revenue over the next 5 years in terms of a newly concluded contract.
There are enormous opportunities for expansion which will be discussed with approved buyers.
What is the reason for the sale?
The owners would like to emigrate.
Why is this a good business?
This is an exceptional business with excellent GP percentages and guaranteed revenue over the long term.
What is the price plus stock and the profit?
The asking price is R14 500 000. The company does not hold stock. The business generates a net profit of around R450 000 per month.
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