Sectors / Category

Annual turnover

|
  • Mandate: 33904
  • Added: 22 May 2020
  • AFS
  • 384

Corporate Branding and Promotional Gifts Business

Gauteng, Johannesburg
384
Mandate 33904
Added 22 May 2020
R 14,800,000* ZAR
Stock: R 0
Assets: R 0
R 560,660 ZAR
Bronwen Barnard
Aldes Focus
Gauteng
Summary

This business is a market leader in a very competitive industry. They provide complete branding and corporate gifting solution to their clients. They have a good reputation providing unique, custom made products to blue-chip companies and small businesses the like. Great cash flow, well-trained staff, and good processes in place. Take over a business that stood the test of time. Contact your broker to find out more about this opportunity.

Corporate Branding and Promotional Gifts Business
SELLING PRICE AFS
R 14,800,000* ZAR
Stock: R0
Assets: R0
R 560,660 ZAR
Summary

This business is a market leader in a very competitive industry. They provide complete branding and corporate gifting solution to their clients. They have a good reputation providing unique, custom made products to blue-chip companies and small businesses the like. Great cash flow, well-trained staff, and good processes in place. Take over a business that stood the test of time. Contact your broker to find out more about this opportunity.

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Fully describe the business's activities?
Corporate branding and promotional gifts company based in Gauteng. They are specialists in their field in sourcing unique and customised promotional merchandise for all for their clients in various industries. They provide a complete branding solution to their clients which includes managing their events on their behalf and providing all the promotional items at competitive prices. They have worked with some of the major brands in South Africa. They specialise in any industry or business, from the big corporate to the small entrepreneur.

How long has the business been established?
The owners started the business in 2001 and have successfully grown this business to one of the market leaders in their industry.

How does the business operate on a daily basis?
The owners are actively involved in the management of the business and liaising with clients. Clients contact them via their online catalog, mailers or direct communication with their longstanding clients. They have 3 employees/coordinators, communicating with clients and assisting with quotes, solutions, and proposals.

How are the clients attracted to the business?
The business has a good reputation in the industry and with its clients which results in returning customers and word-of-mouth referrals. They focus on quick turnaround times and providing customers with a complete branding solution. Through the years they have built up a large client base and continue to provide products and services to theses clients.

What Advertising/Marketing is carried out?
Currently, the business is not focused on any additional marketing and there is a massive opportunity for new owners to focus on getting new business form other marketing strategies. Marketing: - Catalogs on their website - Mailing lists - Word-of-mouth marketing - Existing Client base

Does the business have any contract work?
This industry generally not contract-based and is purely focused on service, quality and turnaround time. This business has a great reputation and therefore service major brands and companies in South Africa.

What competition exists?
There are a lot of competition in the industry, especially smaller promotional businesses.

What are the seasonal trends?
The businesses close during December and therefor not that busy during these times. Other than December holidays no seasonal trend perceived.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All VAT documentation on file with their accountants.

What Balance Sheet and Income Statements are available?
Aldes has up to date Income Statements and Balance Sheets available for February 2020.

What percentage of the business is cash/credit?
Majority of clients pay COD. Some clients are on 30-day accounts.

How could the profitability of the business be improved?
New owners can focus on more marketing and advertising opportunities as this is not currently being done.

Is Seller finance available and for what amount?
This is negotiable. The buyer should have 70% of the full purchase price available in unencumbered funds.

What is the total staff complement?
7 permanent staff members, excluding the two owners.

Give a breakdown of staff/ functions/ length of service?
1 x Bookkeeper/Finance 1 x Admin and invoicing 3 x Coordinators 1 x Driver 1 x Packer

Do any receive special perks or incentives?
None, all receive basic salary package

Are they on contract?
Yes

Do any have management potential?
Yes, two current staff members have management potential. A new owner would need to be involved in general management, client liaison and making strategic decisions.

How involved is the Owner in running the business?
The owners are involved in the day-to-day running and management of the business which includes the event management.

When does the current lease end?
The owner owns the property. There is an option to either: - Purchase the property. - Relocate the business or - Enter into a lease agreement with the current owner.

What are the trading hours?
Normal Business Hours Monday - Friday 08:00 - 17:00

What are the main assets of the business?
Office Furniture Computer equipment Switchboard Delivery vehicle Full asset list will be provided.

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

How have they been valued ?
Owners valuation used.

Which assets are on lease/HP and with whom?
None

Are they presently insured?
The business has comprehensive insurance.

Strengths?
- Good reputation in the industry - Service blue-chip clients - Huge buying power - Low overheads - Support local business - Good systems in place - Loyal staff

Weaknesses?
- Currently no marketing is being done to grow the business.

Opportunities?
- New owner should focus on marketing and advertising to drive more sales - Employ a sales representative to bring in more clients

Threats?
- Competitive industry

What is the reason for the sale?
The owners started the business 20 years ago and came to the decision they would like to sell and pursue opportunities.

Why is this a good business?
This business is a market leader in a very competitive industry. They provide complete branding and corporate gifting solution to their clients. They have a good reputation providing unique, custom made products to blue-chip companies and small businesses the like. Great cash flow, well-trained staff, and good processes in place. Take over a business that stood the test of time.

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FRANCHISE DETAILS

Aldes Focus

6 members
50 active mandates
Gauteng
Menlyn Woods Office Park Office Block C 291 Sprite Street Faerie Glen
0081

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