Fully describe the business's activities?
Part of a strong franchise group that repairs and services all kinds of vehicles. Workshop has 10 service bays. Security cameras throughout the business allows the owner to oversee the business from anywhere.
How long has the business been established?
The branch was opened in May 2019 by the current owners
How does the business operate on a daily basis?
The manager opens and closes daily. Quotes are provided over the phone and to walk ins. Once accepted the vehicle is brought in, deposit paid and the remainder when the vehicle is collected. 5% Royalty is paid on turnover
How are the clients attracted to the business?
Flyers are distributed at traffic lights. Word of mouth
What Advertising/Marketing is carried out?
2.5% Marketing Fee is paid to Head Office to market on Social Media, billboards and the like.
Does the business have any contract work?
Currently the business takes care of a fleet for a pest control company
What competition exists?
Mainly backyard mechanics in the close vicinity.
What are the seasonal trends?
The business is currently in a growing phase
Is the business VAT Registered?
Yes, the business is registered for VAT
Are there up-to-date Management Accounts available?
Yes. Figures can be confirmed by Head Office
What percentage of the business is cash/credit?
About 10% is cash received the rest EFT and Cards
How could the profitability of the business be improved?
Approaching more fleets
Is Seller finance available and for what amount?
The seller would rather consider a cash offer
What is the total staff complement?
1 x Manager that has been with the company since 2007 1 x Qualified Mechanic 2 x Assistant Mechanics 1 x Cleaner 1 x Receptionist 5 x Flyer distributors
Do any receive special perks or incentives?
Salaries are paid and a discretionary bonus in December
Are they on contract?
All permanent staff is on contract
Do any have management potential?
Owners are very happy with the manager
How involved is the Owner in running the business?
The owners are in the business daily.
When does the current lease end?
The business entered into a 5 year lease
Is there an option of renewal & what period?
Yes, a further 5 year option
What is the annual escalation %?
What are the trading hours?
Monday to Friday from 07:00 - 17:30 and Saturdays from 8:00 - 13:00
What is the square meters of the business?
Approximately 256 sq/m
Do you require a licence?
The business is registered with MIBCO, MIWA and RMI
What lease deposit and/or other surety is required?
A two month lease deposit is payable (R90 000)
What are the main assets of the business?
1 x Lift; 1 x Diagnostic; Loose tools A full asset list is available
What is their overall condition?
Everything is in a good and working condition
How have they been valued ?
Owner assisted with a replacement value.
Are they presently insured?
Comprehensive insurance is in place.
The business is showing good growth even in the current tough market circumstances Good location Low overheads Little competition
None were identified
The business is still growing. More fleets can be added
Current economic conditions
What is the reason for the sale?
The owners have other business interests that they want to pursue
Why is this a good business?
Tried and tested methods and systems in place. Good training and support from franchisor.
What is the price plus stock and the profit?
Selling price of R1 600 000 includes stock of about R15 000 and excludes joining fee of R95 000
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