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Annual turnover

  • Mandate: 33864
  • Added: 05 May 2020
  • 878

Franchised Service Centre in Pretoria

Gauteng, Pretoria
Mandate 33864
Added 05 May 2020
R 980,000* ZAR
Stock: R 0
Assets: R 1,400,000
R 44,257 ZAR
Bronwen Barnard
Aldes Focus

Franchised vehicle service centre for sale in a good location. This busy is manager run and has great opportunity to expand. Business listed for R980 000. Negotiable Contact the broker to discuss an offer

Franchised Service Centre in Pretoria
R 980,000* ZAR
Stock: R0
Assets: R1,400,000
R 44,257 ZAR

Franchised vehicle service centre for sale in a good location. This busy is manager run and has great opportunity to expand. Business listed for R980 000. Negotiable Contact the broker to discuss an offer

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Fully describe the business's activities?
This business is a franchise vehicle service center based in a very good location in Pretoria. They do major and minor services as well as repairs for all makes of vehicles This business has well-trained staff and is mainly manager run.

How long has the business been established?
The owner started the business in 2017.

How does the business operate on a daily basis?
The owner is only involved in the overall management of the business and not involved in the day-to-day running of the business. The manager is responsible for all the quotations for the clients as well as ordering parts, checking the quality of work and testing the vehicles and dealing with client inquiries. They have a full-tine secretary handling all the calls, bookings, invoicing and pastel bank. They have two trained head mechanics plus an assistant working in the business attending to the services and repairs.

How are the clients attracted to the business?
The business has a great location in a busy area surrounded by other vehicle-related businesses including workshops and car dealerships. They have many walk-in clients due to the position of the branch. They are an RMI accredited branch and do services for major insurance companies.

What Advertising/Marketing is carried out?
The business is part of a well-known franchise group and benefits from its national marketing campaigns and website advertising. They focus on distribution of flyers and pamphlets in the area as well as advertising boards within the area.

Does the business have any contract work?
They are on the panel of the SAPS government garages and they are accredited and authorised by some of the major insurance companies to do warrant, maintenance and service repairs.

What competition exists?
There are a few vehicle service centers in the area.

What are the seasonal trends?
April - July tends to be a very busy period.

Is the business VAT Registered?

What VAT documentation is on file?
The VAT documentation is on file with his accountant

Are there up-to-date Management Accounts available?
Aldes has Management Accounts up to July 2019. ***Please note the owner provided me with figures which include VAT***

What percentage of the business is cash/credit?
Cash 20-30%

What is the age analysis of the debtors book?

How could the profitability of the business be improved?
The owner is only at the business twice a month and the business would definitely benefit from owner involvement to build relationships with corporate clients and fleet managers.

Is Seller finance available and for what amount?

What is the total staff complement?
6 permanent staff members, excluding the owner.

Give a breakdown of staff/ functions/ length of service?
1 x Manager 1 x Secretary 1 x Mechanic 1 x Mechanic assistant 1 x Cleaner 1 x Driver and Flyers assistant

Do any receive special perks or incentives?
All staff receive their basic salary and should there be overtime.

Are they on contract?

Do any have management potential?
The owner has a manager in place and he's very happy with his performance.

How involved is the Owner in running the business?
The owner only goes to the business twice a month and does the payments and overall management but not involved in the daily activities.

When does the current lease end?
The current lease ends in 2021.

Is there an option of renewal & what period?

What are the trading hours?
Monday - Friday 07:00 -17:00 Saturday 08:00 - 13:00 Closed on Sundays

Do you require a licence?
They hold accreditation for: MIBCO RMI

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

What are the main assets of the business?
A full asset list can be provided to an interested buyer.

Are any items not included in the sale?
The Bakkie is not included in the sale as its used for the owners second business.

What is their overall condition?
Everything is in a good and working condition.

How have they been valued ?
Owner provided us with a valuation

Which assets are on lease/HP and with whom?

Are they presently insured?
Yes - The business has full comprehensive insurance

- Great, busy location within the shopping centre. - Strong Franchise Brand - Well trained staff - Great industry and a huge market - Easy to operate

There is a fair amount of competition in the industry

- Owner involvement will be a huge benefit for this business - There is a great opportunity for growth in the business due to the increasing number of cars within the area.

- It is a competitive market.

What is the reason for the sale?
The owner has another business demanding more of his attention.

Why is this a good business?
This is a great business and industry with a large growth potential. The business has well-trained staff, good cash flow and is performing well since the owner started the business sin 2017 as a start-up.

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