Fully describe the business's activities?
This is a well established distributor of personal protective equipment (PPE) for the mining industry as well as a host of various other industries. The business supplies high quality protective workwear as well as a wide range of safety equipment including protective face and eye wear and respiratory and hearing protection, in compliance with the Occupational Health and Safety Act. The company also provides an embroidery service for personalised products. This business has earned an exceptional reputation in the industry over the last 20 years and has a solid base of longstanding clients and suppliers.
How long has the business been established?
The business has been operating successfully for 20 years.
How long has the owner had the business?
Since inception - The owner started the business in 2000.
How does the business operate on a daily basis?
Supply agreements are reached with various clients who then provide forecasts of their requirements an agreed upon period. Products are sourced and stock is held and distributed in accordance with these requirements.
How are the clients attracted to the business?
The business provides high quality products and exceptional service.
What Advertising/Marketing is carried out?
The business has a really nice website featuring comprehensive catalogues of all their product offerings. The company also regularly updates their social media pages and participates in various networking functions.
What are the seasonal trends?
The business is generally quieter over the December/January period.
Is the business VAT Registered?
Yes, the business is a registered VAT vendor.
What VAT documentation is on file?
All relevant documentation is available.
What Balance Sheet and Income Statements are available?
Audited Annual Financial Statements in respect of the year ended December 2019 are available.
What percentage of the business is cash/credit?
Approximately 80% of the business is credit provided to loyal clients.
What is the age analysis of the debtors book?
No more than 60 days from date of statement.
How could the profitability of the business be improved?
Appointing a dedicated sales team to actively drive new business would improve the profitability exponentially.
Is Seller finance available and for what amount?
No. The seller will only consider an outright sale
What is the total staff complement?
There are 3 staff members excluding the owner.
Are they on contract?
Yes, valid employment contracts are in place.
How involved is the Owner in running the business?
The owner is actively involved in overseeing the day to day operations of the business.
When does the current lease end?
The premises are owned by the seller and a lease agreement will be negotiated with a new buyer.
What are the trading hours?
The business operates from 8am to 4:30pm during weekdays.
What are the main assets of the business?
Assets include embroidery machines, vehicle and office and storage equipment. A full list of the assets will be provided.
Are any items not included in the sale?
Only the owner's personal vehicle and laptop.
What is their overall condition?
Good. They have been well maintained.
Are they presently insured?
Yes, the business is comprehensively insured.
This is a well established business with a solid client base and an exceptional reputation for high quality products and outstanding service. Easy to run, with low overheads. The company is 100% black owned and has a BEE status of Level 1.
There is currently very little focus on driving new business.
There is an excellent opportunity to increase revenue with an active sales team.
General economic threats.
What is the reason for the sale?
The seller would like to relocate.
Why is this a good business?
Well established with longstanding clients and suppliers, this business has enormous potential.
What is the price plus stock and the profit?
The asking price of R2 050 000 excludes stock estimated at R100 000. The business currently generates a net profit of R33 000 per month.
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