Fully describe the business's activities?
The business operates as a typical signage business. The owner concentrates on marketing and liaise with costomers on design and operations. the staff are trained to cross skill but each employee has his field of expertise. from welders, plastic coating drivers and general asistents.
How long has the business been established?
The business has been established since the early 1990's.
How long has the owner had the business?
The owner has had the business since 1999.
How does the business operate on a daily basis?
The staff work from 8 am to 5 pm on a Monday to Friday basis, but also available for overtime to meet deadlines if required. Each staff member has his field of expertise and the work is commenced to meet operational deadlines.
How are the clients attracted to the business?
The business is very well established and an icon in its field of expertise. clients are attracted by word of mouth, website and social media advertising.
What Advertising/Marketing is carried out?
The business advertises by means of web site, social media and word of mouth advertising. a huge percentage of work is repeat work from existing clients which serves as a reflection of the work quality and reasonable pricing.
Does the business have any contract work?
The business does not have contracts in place, but are the prefered supplier to many huge organisations such as municipalities, motor industry and corporate entities.
What competition exists?
Limited competition from other sign makers in the area.
What are the seasonal trends?
Consistent sales throughout the year, with a decline in december as the business closes for a period over the festive season.
Is the business VAT Registered?
Yes, the business is Vat Registered.
What VAT documentation is on file?
All bi-monthly VAT returns as required by SARS.
Are there up-to-date Management Accounts available?
Yes, up to date Management Accounts available.
What Balance Sheet and Income Statements are available?
Annual Financial Statements up to February 2019 will be made available to qualified buyers during due diligence phase.
What percentage of the business is cash/credit?
A huge deposit is payable on acceptance of the quote and the balance is payable on completion of the work. Payment is strictly payable within 30 days after completion of the work.
What is the age analysis of the debtors book?
Very tight control is exercised over the debtor's book. Clients with a reputation as slow payers are requested to pay in advance.
How could the profitability of the business be improved?
Huge projects are commissioned by government and municipalities. A BEE partner can secure greater volume of work thus increasing profitability.
What is the total staff complement?
The total Staff compliment is 9 members.
Give a breakdown of staff/ functions/ length of service?
The operational side of the business is overseen by a supervisor who in turn reports to the owners of the business. The remaining staff members consist of designers, welders, plastic coating specialist , drivers and general asistents.
Are they on contract?
All staff members are on a Permanent Work contract. casuals are hired from time to time as required.
Do any have management potential?
The supervisor and drivers have excellent managerial skills.
How involved is the Owner in running the business?
The owner is 80 % involved in the business's general administration.
When does the current lease end?
The Current lease ends 30 April 2020
Is there an option of renewal & what period?
Yes, an option to renew, subject to negotiations with the landlord.
What is the annual escalation %?
Current escalation is 10% per annum.
What are the trading hours?
Monday to Fridays from 8 am to 5 pm.
What is the square meters of the business?
The present premises is +/-500m2.
Is a copy of the lease available?
A copy of the lease is available on request.
Do you require a licence?
No licence is required.
What lease deposit and/or other surety is required?
One months rental deposit required.
What are the main assets of the business?
The main assets of the business is the clientele with repeat orders. The physical assets is as the Asset list of the business which includes all equipment and motor vehicles required for operational purposes.
Are any items not included in the sale?
All items on the asset list are included in the sale.
What is their overall condition?
the seller guarantees all assets and equipment will be in an excellent working condition on Effective Date of Sale.
Do any require repairing?
No Repairs required at this stage.
How have they been valued ?
The assets have been well maintained and valued at a fair market value.
Which assets are on lease/HP and with whom?
Ther is still an HP commitment on the following Equipment: a) 1 LDV b) Plasma Cutter c)Powder Coating plant d)Flatbed Printer
What are their settlement amounts?
The settlement amounts reduce each month and will be forwarded to qualified buyers.
Will Seller settle or Buyer to take over?
The Buyer is expected to take over the HP commitment.
Are copies of agreements available?
All copies of the agreements are available.
Are they presently insured?
All assets and equipment are secured at replacement value.
This business is well established, highly profitable with a huge amount of repeat clientele. This business is an icon in its industry and well known and respected by its opposition. The good record of the business has been referred to as a Benchmark for the industry.
The economy is under pressure casing many businesses to cut on expenses such as marketing and advertising. Economic transformation to to make opportunities available to all race groups is also applying presure on small business. These factors will all have a negative influence on the turnover and profitability of the business.
This business is the ideal opportunity for person or business with a strong BEE rating to maximise the opportunities that are exposed to this business.
this business is compliant in all respects. The business operates from an Industrial Zoned business and complies with all safety and health issues as required by the Sectoral Determination board.
What is the reason for the sale?
The owner wishes to retire.
Why is this a good business?
This business is well established and been in operation for more than 20 years. It is an icon in the industry and known for its high quality of expertise and craftsmanship.
What is the price plus stock and the profit?
this business has generated a profit from operations on average for the last 12 months of R 88 500. Its assets are in an excellent working conditions and the asking price for the business is R 3 600 000.
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