Fully describe the business's activities?
General Engineering work for large Industrial companies, who require replacement parts to be machined and installed. Many large companies such as Transnet, Sugar mills or large engineering outlets that require specific designs and repairs to be manufactured by this workshop. Open 5 and half days a week
How long has the business been established?
How long has the owner had the business?
What steps are in place to solve 'load shedding' problems?
There are none. Staff are utilized for preparing machinery or for cleaning during load shedding.
What is the average KW usage?
How does the business operate on a daily basis?
Business starts at 0700 hrs and closes at 1600 hrs Monday to Thursday. Fridays close is at 1300 hrs. Business receives orders from established customers once a quotation is completed and accepted. Tenders are quoted on and over the past 2 years this has opened up new markets. Job cards are issued to the operators and once the task is completed, delivery takes place (or collected) and if necessary installed.
How are the clients attracted to the business?
Well established clients refer new clients to the company by word of mouth. New clients are met by the management and contracts are drawn up for machining and engineering opportunities. Repeat business is a major gererator of monthly turnover.
What Advertising/Marketing is carried out?
Word of mouth and development of new clients that the owners have brought in. Website has been re-designed and the response has been positive.
Does the business have any contract work?
There are a few contracts in place, but most of the regular clients have been utilizing this company for their unique machining and engineering skills, for many many years.
What competition exists?
There are other similar smaller opposition companies who try and undercut prices, but they are often too small to sustain regular orders from the larger industrial companies.
What are the seasonal trends?
Most of the monthly revenue is regular and consistent, with a close down during the Christmas season. This affects a couple of end of year turnover amounts. A skeleton staff stays on over this season to cope with emergency requirements.
Is the business VAT Registered?
What VAT documentation is on file?
The accountant has all VAT and Tax files.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
The past 3 years AFS 's are available to potential buyers after they have met with the owner.
What percentage of the business is cash/credit?
10% cash is transacted and the balance of the work is invoiced out and payment terms apply.
What is the age analysis of the debtors book?
30 day payment terms are in place and most of the work is collected on these terms.
How could the profitability of the business be improved?
The new website is starting to generate positive growth in new clients, looking for an engineering and machining company with sophisticated CNC lathes to cope with intricate work. This company has the skills and the machines to add value with quality workmanship.
Is Seller finance available and for what amount?
What is the total staff complement?
There is a staff of 8 which includes a financial/administrative manager. The staff are skilled operators who ensure that daily tasks are completed on time.
Give a breakdown of staff/ functions/ length of service?
Owner often works on the machines and assists the operators when there is a heavy work load. Most of the staff have been in the company for 4-8 years.
Do any receive special perks or incentives?
Small cash bonuses are distributed once certain targets have been reached.
Are they on contract?
Do any have management potential?
There is a manager already in place
How involved is the Owner in running the business?
The owner is capable of working on the machines and also develops new markets.
When does the current lease end?
30 November 2020
Is there an option of renewal & what period?
Yes for a further 3 years
What is the annual escalation %?
What are the trading hours?
0700 to 1600 hrs Mon-Thurs. Friday 0700 to 1300 hrs. Saturday work is tasked when required.
What is the square meters of the business?
716 square meters excluding parking.
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
To be negotiated with the landlord
What are the main assets of the business?
Machines such as CNC lathes, presses, mills etc There is a delivery truck, recently purchased.
Are any items not included in the sale?
What is their overall condition?
All are in very good working order.
Do any require repairing?
How have they been valued ?
At replacement value.
Which assets are on lease/HP and with whom?
The truck is on lease. All machines and lathes are free standing.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Quality work is produced by competent and trained staff, which ensures that there is solid monthly revenue. The business is starting to show growth during the past few months, which is a positive sign considering the current economic state the sector is experiencing.
Not enough development and arketing is done. There is a need for the company's skills to cope with a higher work load.
Create new markets. The owner has recently joined a forum of engineers who meet on a monthly basis which allows new contacts to be made and the opportunity to work together to grow their various businesses.
ESKOM is always a threat to the RSA economy
What is the reason for the sale?
The owner is wanting to return to his home country in Mauritius.
Why is this a good business?
Well established with a variety of loyal customers. Quality staff ensure that a high standard of work is maintained throughout. Well managed
What is the price plus stock and the profit?
R 4,000,000 plus a small stock holding of welding and basic small tools in the workshop. Stock is approximately R 2000-4 000
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