Sectors / Category

Annual turnover

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  • Mandate: 34002
  • Added: 11 May 2020
  • AFS
  • 349

Manufacturer of Industrial Fans - Air Handling & Movement Systems

Gauteng, Johannesburg
349
Mandate 34002
Added 11 May 2020
R 21,500,000* ZAR
Stock: R 450,000
Assets: R 10,728,233
R 499,016 ZAR
Werner Angell-Schau
(PRINCIPAL)
Aldes Zululand
KwaZulu-Natal
KwaZulu-Natal
Summary

Business well established showing a growth for the last 18 years - strong management team in place. Manufacturer of industrial fans - secured a solid market share in the industry. Good return on investment, business is not heavily geared running with a healthy cash flow balance. Opportunity for any BEE structure to take this business to the very next level.

Manufacturer of Industrial Fans - Air Handling & Movement Systems
SELLING PRICE AFS
R 21,500,000* ZAR
Stock: R450,000
Assets: R10,728,233
R 499,016 ZAR
Summary

Business well established showing a growth for the last 18 years - strong management team in place. Manufacturer of industrial fans - secured a solid market share in the industry. Good return on investment, business is not heavily geared running with a healthy cash flow balance. Opportunity for any BEE structure to take this business to the very next level.

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Fully describe the business's activities?
Manufacturing of industrial fans, air handling & movement systems.

How long has the business been established?
Established since 2003.

How long has the owner had the business?
17 Years.

What steps are in place to solve 'load shedding' problems?
Fully backed by 150 KVA generator, no down time during load shedding.

What is the average KW usage?
+- 60 KW

How does the business operate on a daily basis?
Business has s solid admin and management structure in place, owner is involved within the everyday running of the operation. Owner spends +- 30% of the time within the running of the business. Owner oversees the bigger things for example the buying of laser cutters and the likes. Admin and management have in house accountant keeping records up to date with current numbers always ready and available.

How are the clients attracted to the business?
Business is well established and well represented in the marketplace.

What Advertising/Marketing is carried out?
Google and website.

What competition exists?
There are 3 other role players in the area and industry.

What are the seasonal trends?
Business is constant and stable throughout the year - peaking during September, October, November & December - slower months January & February.

How did the Covid-19 pandemic impact the business turnover / daily operations?
TBA - still too early to tell, business has resumed at 30% at this stage.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Higher demand for used to be imported products clients now seeking local supply and manufacturing - a new market has been tapped into by this business. Enquiries are flowing in for availability.

Is the business VAT Registered?
Yes.

What VAT documentation is on file?
Up to date, available during due diligence stages.

Are there up-to-date Management Accounts available?
Yes, all comprehensive and up to date.

What Balance Sheet and Income Statements are available?
Yes, all up to date.

What percentage of the business is cash/credit?
10% Cash & 90% EFT & Electronic.

How could the profitability of the business be improved?
BEE element & structure.

What is the total staff complement?
23 Staff.

Do any receive special perks or incentives?
Bonusses incentives.

Are they on contract?
Yes

Do any have management potential?
Solid management team in place.

How involved is the Owner in running the business?
30%

When does the current lease end?
Premises is owned by the seller - will award a 3 - 5 year lease with an option for renewal. The seller will also make an option on the property available to the purchaser to purchase the property/premises at a market related value.

Is there an option of renewal & what period?
Yes, a further 3 - 5 year renewal depending on the structure thereof.

What is the annual escalation %?
8%

What are the trading hours?
Monday - Thursday 8:00am - 17:00pm, Fridays 8:00am - 14:30pm.

What is the square meters of the business?
Office 220 sqm, Workshop/Factory 2600 sqm.

Is a copy of the lease available?
Yes.

What lease deposit and/or other surety is required?
To be negotiated with seller.

What are the main assets of the business?
Workshop/Factory equipment & machinery, tools, vehicles, office furniture & equipment.

Are any items not included in the sale?
All included as per assets register.

What is their overall condition?
Excellent and well kept.

Do any require repairing?
All been maintained and kept in tip top condition.

How have they been valued ?
Market related values.

Which assets are on lease/HP and with whom?
One laser cutter still on HP.

What are their settlement amounts?
R 1,8 mil outstanding.

Will Seller settle or Buyer to take over?
Buyer to take over alternatively can be negotiated.

Are copies of agreements available?
Yes.

Are they presently insured?
Yes, full comprehensive insurance in place.

Strengths?
Business been established for 18 years, equipment and machinery mostly paid for, business is not geared, staff well trained, solid management team and structure in place, business is well stocked, healthy cash flow (money in the bank), good product offering and healthy demand for the products.

Opportunities?
Implementation of BEE structure & element.

Threats?
Not aware of any direct threats, economy trends and global instability could effect business.

What is the reason for the sale?
Seller wants to immigrate.

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FRANCHISE DETAILS

Aldes Zululand

2 members
33 active mandates
KwaZulu-Natal
28 Bronze Street
3880

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