Fully describe the business's activities?
Timber & composite options are available from established suppliers to suit the budget & needs of their clients (private & contractors). The owner receives website enquiries, emails or calls, visits the client/prepares a quote, takes in deposit from private clients, before ordering materials & designing the deck, then instructing staff on-site - where after the staff carry out the work alone (as many years experience).
How long has the business been established?
13 years with the same owner
How are the clients attracted to the business?
Website, yellow pages advertising only, established/known clients - private & contractors. & word-of-mouth referrals due to reputation & service
What are the seasonal trends?
Dec & Jan are traditionally quiet due to the builders shut-down
Is the business VAT Registered?
Yes - with all Vat submissions up to date & on clients files
Are there up-to-date Management Accounts available?
MA's are kept up to date with great detail. They were used in this Report with some of the many small but detailed expenses included under Sundries. Every expense is accounted for - before deriving the Net Profit of some R191 000 pa. The owners personal benefits are added-back to obtain the full/true NP of the business at R191 000pa that a new owner could decide how to utilise as profit/salary etc. The CC is not for sale, but instead the business & it's trading name would be bought as a going concern out of the CC.
What is the total staff complement?
5 full-time : 2 Carpenters/drivers , supported by 3 assistants - paid through a Broker so fully documented; while large jobs might entail brining in extra labour or a regular external sub-contractor with his team.
How involved is the Owner in running the business?
The owner is involved in most management aspects of the business as covered in the first point (1 -2 hrs a day) - but not involved in working on-site where he hardly is - as he has another business which demands his time. He also spends no time driving the marketing/ business development, which a new owner could do.
Not much space is required for the storage of the tools etc - which are presently kept in storage of some 36m2 with an annual charge of R20 000. Raw materials required are either delivered to site or collected using the two Company bakkies.
What are the main assets of the business?
1 ton & half-ton bakkies (2) : worth some R200 000 together, which is approximately the outstanding debt at the banks - noting that the repayments of some R7 900pm (av 28 months remaining) are included in the expenses of the Report. Then wood cutting machinery & hand tools at some R20 000 2nd hand value vs some R50 000 new - all being sufficient for the Business's needs; while if an extra large/double job demands more equipment, then a regular sub-contractor with equipment is available & used.
Long established & known decking business, with some regular clients, necessary assets, & excellent self-managing staff.
Owner is involved on a secondary/reactionary basis only as he has another main business he primarily focusses on.
New owner to drive marketing, business development & turnover, off a well-established base; as the seller has been focussing on his other business which has grown substantially. A dedicated owner must surely far exceed the present owners base levels, by pushing marketing, business development, & sales.
That a new owner doesn't have any wood/decking experience or is not able to learn (decking construction, design, quoting) from the present owner who is willing to assist where required as his other business is also in Durban; noting that the staff are very competent in respect of their carpentry /work skills.
What is the reason for the sale?
The Seller has another business that is growing rapidly & requires his full attention.
What is the price plus stock and the profit?
The Sale Price is R350 000 , off a turnover of R2.5m, providing a Net Profit of R191 000 pa; noting that perhaps some expenses could be saved on & definitely marketing could be improved.
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