Sectors / Category

Annual turnover

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  • Mandate: 33943
  • Added: 16 May 2020
  • AFS
  • 627

Unique Business for an Engineering Graduate within a solution based environment.

Western Cape, SA Countrywide
627
Mandate 33943
Added 16 May 2020
R 5,400,000* ZAR
Stock: R 20,000
Assets: R 500,000
R 170,225 ZAR
Noel Heath
(PRINCIPAL)
Aldes Triumph
Western Cape
Western Cape
Summary

Established 8 years ago and trading very successfully this business offers bespoke and professional drone solutions to enterprise clientele across Africa. The business has an existing customer base and offers unlimited growth potential especially in the coming years with global drone adoption increasing exponentially. Several distribution and trading agreements are already in place. This debt free business requires incredibly low overheads to operate. The Buyer should be technically astute, enjoy local and international travel, solution driven and enjoy interacting with clients.

SELLING PRICE AFS
R 5,400,000* ZAR
Stock: R20,000
Assets: R500,000
R 170,225 ZAR
Summary

Established 8 years ago and trading very successfully this business offers bespoke and professional drone solutions to enterprise clientele across Africa. The business has an existing customer base and offers unlimited growth potential especially in the coming years with global drone adoption increasing exponentially. Several distribution and trading agreements are already in place. This debt free business requires incredibly low overheads to operate. The Buyer should be technically astute, enjoy local and international travel, solution driven and enjoy interacting with clients.

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Fully describe the business's activities?
The business specialises in the integration of professional drone solutions for clients wanting to establish their own in-house drone capabilities. After integration, clients can independently conduct on demand aerial surveys, aerial photography, blast filming, mine maps etc. This is a solution based concept and supply business offering multiple solutions within the commercial environment for the use of drones. The business has a network of global suppliers and partners to fulfill the needs of each individual client. The final integration is an effective and bespoke solution.

How long has the business been established?
Since 2012

How long has the owner had the business?
Since Inception

How does the business operate on a daily basis?
The Owner is assisted by one other (his partner) and both have their own defined area during on-site demonstrations it may be required for both of them to be present but under normal circumstances only the Owner is required to interface with the client.

How are the clients attracted to the business?
There is limited advertising required as they are regularly approached by large companies to assist in finding a solution to the clients specific need. A number of these operations are cross border multi-nationals within the mining environment and although not their only market, they have become known as a service provider within this sector. If the Buyer is proactive there is a wide scope of potential clients yet to be approached. The number of potential applications is unlimited and the forestry and agricultural sectors have not been explored as yet. The point of difference between this business and others are the quality of hardware used (European) as well as the fact that they interact with their clients continually after the commissioning and have loan drones as and when required so as to reduce down time experienced by their customer.

What Advertising/Marketing is carried out?
Website, social media (LinkedIn) and Google Ad words. There is limited above the line marketing as effort is put behind approaching potential clients with drone based solutions to meet their specific needs. This type of business has a specific marketing style that is not just above-the-line media type. The Seller has identified additional opportunities to increase the reach to new clients

Does the business have any contract work?
Listed as a vendor for globally renowned clients as well as importing and supply of high quality hardware.

What competition exists?
There is competition, but not as refined within the sector in which this business operates. The quality of product and the high tech of the application set this business apart from many others. The quality of hardware and support is an important part of the transaction and the business focuses on the correct application being employed. High quality hardware and very focused and intense training and hand-over program, ensuring that the customers team are fully competent when the Seller leaves the client. After sales service is extremely important to the culture of this business owner which makes a significant difference.

What are the seasonal trends?
There can be a slight seasonal impact dependent upon the application but not significant.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
As required

Are there up-to-date Management Accounts available?
Yes, up to date and available to a qualified Buyer as part of the Due Diligence process.

What percentage of the business is cash/credit?
Predominately EFT and deposits required prior to delivery and commissioning.

How could the profitability of the business be improved?
The profitability is directly impacted by the business Owner's input and drive as not significant annuity income after the original sale. A successful Buyer will need to be proactive and uncover situations where a solution can be offered. The Seller has identified further opportunities that could drive profitability up considerably. these will be shared with the Buyer.

What is the total staff complement?
2

Give a breakdown of staff/ functions/ length of service?
Owner plus one office based person who can offer field assistance as and when required. Ideal Husband and Wife team business.

How involved is the Owner in running the business?
Fully an Owner run business.

What is the square meters of the business?
The business only requires a small workshop. Ideal work from home type business.

What are the main assets of the business?
Intellect and supplier agreements. A significant amount of equipment is included in the sale.

Are copies of agreements available?
Yes, there are trading agreements in place with European based suppliers.

Strengths?
Repeat customers with large unexploited market. Excellent customer endorsement due to service levels of this business...strong and satisfied customer base exists. Predominately a US$ based income. International footprint already in place. The business can be domiciled within South Africa at any location or even off-shore if preferred. Low overheads as ideal work from home type business that suits a husband and wife team. Niche offering embracing latest technological intellect and high quality hardware

Weaknesses?
Regulatory constraints. Cross border supply comes with its own set of specific requirements. Budget dependent impacts on clients requirements.

Opportunities?
Up-sell additional turn key solutions to existing and new clients with print media and marketing. Able to offer integrated security solutions. Underground inspection solutions. Drill and Blast solutions (gas monitors). Engineering solutions. Rehabilitation solutions. Forestry solutions. Service Level Agreements/Retainers for maintenance/repairs and operational audits. Trade in programs for obsolete/old drones, push new systems. Roadshows.

Threats?
Not a significant annuity type business. Limited resources by clients due to budgetary restrictions. Business growth is dependent upon drive of the Owner who should be proactive and of an engineering background.

What is the reason for the sale?
The Owner and his wife who are still young and mobile are looking to relocate to the USA and feel that since most of this business is African based it does not make sense to retain it. Currently the Owner makes about 20 international cross border trips per annum, and this would not be possible if domiciled so far away. A restraint of trade for the whole of Africa will be acceptable to the Seller.

Why is this a good business?
The Business is debt free! This is an ideal business for a mobile and fairly young engineering graduate who has the ability to interact with customers and their staff at all levels. The business requires a hands on operator who is capable of understanding the clients requirement and making it happen. The business can be domiciled almost anywhere with Africa even off-shore if desired, so long as the Buyer is proactive and self driven to uncover and offer a client a solution. Low overheads and work from home ensure low costs apart from travel when required, but the income recovered ensures significant profitability.

What is the price plus stock and the profit?
The price of the business is R5,400,000 which includes training and hand over, as well as ongoing support for an agreed period. The signed off Management Accounts for this business prove the profitability and viability of the operation.

Important Information
The Seller requires a signed Confidentiality Agreement between the business and the interested party as well as proof of funds prior to the name and confidential information being disclosed.

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FRANCHISE DETAILS

Aldes Triumph

1 members
22 active mandates
Western Cape
8A Loerie Street, Bergsig
6529

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