Fully describe the business's activities?
Importer, Wholesaler and Retailer of specialised automotive accessories with strong demand for which they have the sole distribution rights. The business services the OEM, dealers and public through their Retail Outlet and website and various online channels. This way they service the whole of the country. The option is available to purchase either 100% of the business or to buy in as a partner as the primary requirement is cash to fund stock purchases.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
1. Retail outlet open 6 days a week 2. Ecommerce website allowing sales all over South Africa 3. Registered accounts with other ecommerce sites: Takealot, Makro and bid or buy 4. Sell via resellers: new and used car dealerships, 4x4 Mega world, Safari Centre, Voetspore and independent aftermarket accessories shops. 5. 90% of the sales are online and re-seller orders, all orders are processed each morning and the courier collect between 1pm-3pm
How are the clients attracted to the business?
There are various mechanisms: 1. Direct sales via retail outlet in Pretoria 2. X-banners in re-sellerâs shopfronts 3. Ecommerce website, online traffic generation via google add words 4. Promotions via registered ecommerce re-sellers; Takealot, Makro, Bid or Buy 5. Small demonstration lines shown to customers via new and used car dealerships
What Advertising/Marketing is carried out?
1. Newly developed display stand explains our product and are able to carry up to R25k stock. Will aim this at car dealerships and re-sellers with shopfronts 2. Complete revamp of Ecommerce website; 90% complete 3. Facebook brand awareness, own Facebook page and advertise on Facebook market 4. Adds on Gumtree 5. Exhibitions at outdoor shows and shopping malls. 6. Email marketing with an existing customer base of 3000+
Does the business have any contract work?
1. No, all of the sales are open market, most are to the end-user which maximises the GP also avoiding unpaid accounts 2. They have been approached by potential re-sellers in neighbouring/African countries for distribution rights. If we exploit this, we will require monthly MOQâs form them. 3. Bulk or fleet deals have been concluded in the past. This is an area ripe for a new owner to develop.
What competition exists?
1. There are similar products but none of them are manufactured form the same material or have the same properties/advantages our product offers. 2. Our pricing is very competitive , cheaper than most of the competitors. 3. Our manufacturer has the capability to manufacture vast quantities in short time frames. Up to 10 000 sets in 2 days 4. We are involved in the design process and can ensure improvers that will keep us ahead of any competitors. 5. These are approved by several OEM's.
What are the seasonal trends?
No seasonal trends
What is the total staff complement?
2, plus the owner and his wife
Give a breakdown of staff/ functions/ length of service?
2 Sales Representatives
Do any receive special perks or incentives?
Are they on contract?
Yes, permanent employees
How involved is the Owner in running the business?
Part time, has other businss interests
When does the current lease end?
31 January 2021
Is there an option of renewal & what period?
Yes. 3 years
What is the annual escalation %?
What are the trading hours?
MOnday to Friday 09h00 to 17h00 Saturday 09h00 to 13h00
What is the square meters of the business?
Who is the Owner/Landlord?
M F Guirich
Is a copy of the lease available?
Yes, it is on file
Do you require a licence?
What lease deposit and/or other surety is required?
2 months rental. Currently R 40 000
What are the main assets of the business?
Miscellaneous office equipment, Computers, display units, workshop equipment etc. A comprehensive asset list is on file, with estimated Rand values. This will be made available to qualified buyers
Are any items not included in the sale?
Nothing is excluded
What is their overall condition?
Do any require repairing?
No, all equipment is, and will be, in full working order on handover
How have they been valued ?
Purchase Price. Most is newly acquired
Which assets are on lease/HP and with whom?
All assets are fully paid for
What are their settlement amounts?
Will Seller settle or Buyer to take over?
All assets to buyer, and included in the sale
Are copies of agreements available?
Not applicable, nothing is on HP or lease
Are they presently insured?
1. Good IP / Unique Products 2. Listings / homogulation with vehicle OEM's 3. Very easy to operate 4. Large potential market, mostly unexploited 5. Rapid growth in turnover - over 100% per annum, can continue with right input from new owners 6. Ongoing relationship with Seller, who will need to ensure this business remains successful
1. The business is a little under capitalised, and could do with better working capital position 2. General economic uncertainty, especially in the motor trade. However, the inexpensive products are very well suited to tough times - they help vehicle owners protect and enhance their vehicles
There are many opportunities, and are best discussed with prospective purchasers. They include: 1. New products and listings - with different vehicle brands 2. New products and listings - all vehicle brands 3. New products - within the general industry segment 4. Enhanced marketing channels - online store, Takealot etc, feet (reps) on the ground, trade shows etc 5. Wider geographic spread - within South Africa and even sub Saharan Africa. Business has exclusivity for sub Saharan Africa
1. Uncertainty regarding current Covid-19 related economic situation 2. Supply chain disruptions in the short term. Products are largely imported from Russia
What is the reason for the sale?
As the option os open to buy the whole business or a stake in the business subject to seller approval of a potential new partner. The details of this will be discussed with qualified potential buyers
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