Fully describe the business's activities?
The business is one of the most well know and supported earth moving and plant hire businesses in the Lowveld Mpumalanga South Africa .It specializes in the hiring out of its equipment to all contractors in the building and excavation industries .It also sells second hand equipment and repairs and maintains it s own equipment from its workshop.
How long has the business been established?
The bushiness has been established for 26 years
How long has the owner had the business?
The owners father originally established the business and then handed it over to his 2 sons who have continued its successful operations over the years , growing the business as the demand and increased development of the Lowveld continues to boom
How does the business operate on a daily basis?
The business generates revenue by offering it excavation and grading service to the building and industrial developmental industries. The desired and required piece of earth moving equipment required for the projects on hand are either driven to site by the business drivers or taken on flat beds to site. The business charges per hour for the use of the equipment, the fuel usage and the driver as the equipment is only operated by the business skills operators. there are blue chip comp[anies as well as smaller developers who make use of the businesses services
How are the clients attracted to the business?
The clients are attracted to the business largely by word of mouth and due to its reputable long establishment most is repeat usage of the businesses services.This is mostly due to its familiarity with the local developers an the reliable service s the owners maintains his equipment and has skilled reliable operators
What Advertising/Marketing is carried out?
there is no advertising and marketing carried out at this stage and there never has been .The business has survived and thrived on repeat work and word of mouth alone
Does the business have any contract work?
The business has no written contracts as such but does continuous work for many excavators, blasters and builders locally.
What competition exists?
There are a very few earth moving suppliers locally but none operate on the scale and level of service as does the business, as it has a full compliment of machinery for all types of work and none have been as long established as that of the business being offered for sale
What are the seasonal trends?
The business tends to slack off over December when the builders close , further than that it has consistent work
Is the business VAT Registered?
Yes the business is VAT registered
What VAT documentation is on file?
The historical and to date VAT documentation is available on file and can be supplied to a serious financially pre qualified buyer only.
Are there up-to-date Management Accounts available?
yes there are up to date management account
What Balance Sheet and Income Statements are available?
The balance sheet is not for sale
What percentage of the business is cash/credit?
The business operates on a 90% account basis. the clients it services are larger corporate companies and they pay within 30 day of statement
What is the age analysis of the debtors book?
The aging of the books track at 60 day and 10@ are 90 days
How could the profitability of the business be improved?
The profitability of the business could be improved by adverting and adding more equipment into the asset base as the demand is there.this can be accomplished by adding more equipment into the current asset base as the demand is there.
Is Seller finance available and for what amount?
No Seller finance is available from the seller , the prospective buyer would have to either have his own unencumbered funds or make his own application for funding .The seller has given us at Aldes strict instruction under our mandate with him and the business that he will not be willing to assist with funding and we must first financially pre approve any potentially interested buyer as he does not have the time to assist in this.
What is the total staff complement?
The business operas with 6 permanent workshop 9 multi purpose) employees and 18 skilled machine operators who operate seasonally as and when required . The seller himself attends to the taking in of jobs and they have an accountant who is charged on the expenses as in the financials
Are they on contract?
yes the 6 workshop employees are on contract.
Do any have management potential?
Unfortunately not at this stage
How involved is the Owner in running the business?
the owner is operational on a daily basis in the business by attending to the work which comes in and is required to be quoted on
When does the current lease end?
the lease is on an ongoing month to month and has operated as such
Is there an option of renewal & what period?
the new owner can sign a lease with the landlord if they require. The landlord will require 1 months rental as a deposit and the first months rental will be payable upfront and thereafter on the 1st day of each consecutive month for the duration of the lease.
What is the annual escalation %?
What are the trading hours?
The trading hours are dependent on the nature of the work load the business needs to accomplish and this is the time lines attached to completion as set out in the agreement with the Parties involved.
Do you require a licence?
Yes the necessary operational safety licenses are required
What are the main assets of the business?
The main asset of the business are its earth moving equipment and the workshop tools for maintenance . There is a full asset list on file but this itemized list may change from time to time if the seller purchases additional assets or disposes of some . But at the time of sale the asset value will be as stipulated on the mandate and as was provided by the seller to Aldes for this report
What is their overall condition?
The overall condition is fair to good as they are working machinery but the seller maintains then adequately as this is beneficial to the revenue of the business
How have they been valued ?
Th seller has with his vast knowledge of the industry equipment provided Aldes with what he deems is a fair market related value for the equipment
Which assets are on lease/HP and with whom?
All the asset included in the sale and purchase price of the business are fully paid for and are the unencumbered property of the seller
Are they presently insured?
Yes the assets are insured
What is the reason for the sale?
the seller feels he has been in the industry fro long enough and wishes to spend more time with his wife and children besides have other property investment buildings and business to look after
What is the price plus stock and the profit?
There is no stock sold with this business only assets and goodwill.the price for the assets and goodwill is 20 million SA rand's
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