Fully describe the business's activities?
The business is a paving contractor specialising in paving for residential, commercial, and industrial clients. The business has been operational since 1983, serving its customer base for more than 38 years from the business premises in the Northern suburbs of Cape Town. The business also undertakes lite construction work that relates to the main business of paving and always ensures quality workmanship. The business would suit a young and energetic buyer. The company has downscaled due to the aging partners, there is however much growth potential and lots of business opportunities. A likeminded buyer would have a solid platform to work from. The business among many others has experienced tough times, taken the odd knock but has always bounced back, it is now idling waiting for that new enterprising motivated new owner. The old guard would be available to assist with the mechanics of the business as they would be rewarded with the business being a continuous success with its new owner. The business has been built on a reputation of being an effective paving installer with a base of many satisfied customers. Much of the business comes about through referrals as doing things the correct way pays dividends. One can also adopt an aggressive marketing approach in order to grow to the size desired. If you like the outdoor creativity type of business and are an energetic go getter like we once were there is no limit to what you can achieve. Management is up front and transparent anything you need to know they will happily advise on.
How long has the business been established?
How long has the owner had the business?
How are the clients attracted to the business?
Word of Mouth, Google, establised clients and referals
What Advertising/Marketing is carried out?
Website and Yellow pages adds
Does the business have any contract work?
From Time to Time
What competition exists?
Other Paving Companies
What are the seasonal trends?
Winter and rain season is less busy
Is the business VAT Registered?
What VAT documentation is on file?
VAT registration certificates and historic VAT submissions
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
2019 TAX YEAR
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
Increase in Marketing and selecting the correct projects to take on
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
2 Site managers 12 Pavers 1 Office manager
Do any receive special perks or incentives?
Site Managers 100% Life Insurance and 50% cell phone contract Office manager 50% medical insurance
Do any have management potential?
How involved is the Owner in running the business?
Both owners involved
When does the current lease end?
Business owners own the premises
Is there an option of renewal & what period?
What is the annual escalation %?
What is the square meters of the business?
ERF 600sqm Floor 130sqm
What lease deposit and/or other surety is required?
What are the main assets of the business?
Vehicles, office eqiupment, tools
Are any items not included in the sale?
What is their overall condition?
Good working condition
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Are copies of agreements available?
Are they presently insured?
36 Years established and very well known in the market
Sourcing commercial projects and increase marketing spend
Weather, competion and the economy
What is the reason for the sale?
Partners are ready to retire
Why is this a good business?
Its survived 36 years of topsy turvy economy and has always practised sincere workmanship
What is the price plus stock and the profit?
R800,000 INCL STOCK Profit R322,000
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