Fully describe the business's activities?
Started Gradaco Kzn (Pty) Ltd 5 years ago and converted to a Pirtek Franchise branch 3 years ago in 2017, Provides a mobile Hydraulic repairs and maintenance service for logistical and farming enterprises. Repairs and maintenance work is done on site for trucking companies, many auto carrier companies that require a 24 hrs service, 7 days a week. Services the midlands area of KZN and have shown a 59% growth in the business over the past 2 years, YEAR ON YEAR. The branch has established itself as a preferred supplier to the many blue chip companies that have relocated their operations into the Camperdown industrial areas.
How long has the business been established?
2 years as Gradaco (Pty) Ltd and 3 years as a Pirtek Franchise region. Total of trading experience is 5 years.
How long has the owner had the business?
All of the 5 years of trading
How does the business operate on a daily basis?
The business is available on a 24/7 basis for any breakdown work and it also has an active workshop in PMB that deals with cylinder manufacture and repair/maintenance work. The company is the only 24/7 company in the area and this gives them a strong competitive edge within a well established client base.
How are the clients attracted to the business?
The word of mouth generates a great deal of new business, but there is also google adds and social media advertising that keeps the company busy with growth and development. Web site is active and creates online interest on an ongoing basis.
What Advertising/Marketing is carried out?
See above explanation of advertising/marketing
Does the business have any contract work?
What competition exists?
There are some smaller outlets that try and compete, but none have the 24/7 capacity to deal with regular breakdowns that entail on site service
What are the seasonal trends?
Stable throughout the year and the "shutdown" in December has a slight slow down of activity.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The company operated as an essential service provider during Covid-19 months as they were required to keep logistic companies on the road. Sales was down in April, but are now increasing again with the logistics revival.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
There is a "pack" of information on file that details the Covid -19 operations. This can be made available to serious buyers who have committed to securing the business and are ready for an in depth due diligence.
Is the business VAT Registered?
What VAT documentation is on file?
12 months Vat returns are on file
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
February 2020 and also March -May 2020
What percentage of the business is cash/credit?
90% is on credit and the balance is in cash or credit card payments
What is the age analysis of the debtors book?
70% current, 20% on 30 days and 10% on 60 days.
How could the profitability of the business be improved?
Better administration systems and the appointment of an administration assistant.
Is Seller finance available and for what amount?
What is the total staff complement?
11 Permanent, with one temporary and 1 part time
Give a breakdown of staff/ functions/ length of service?
5 hydraulic technicians working with 3 vans, and 1 "bakkie." 1 x workshop foreman(who is a qualified fitter and turner) 2 x assistants and 1 x administrator, who is helped by an assistant (temporary). The administrator manager works flexible hours
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
There is a management structure in place already.
How involved is the Owner in running the business?
Owner is an engineer and is very "hands on" in his style of management
Any special arrangements for the staff related to the Covid-19 pandemic?
The staff of technicians were split into 3 teams and worked "shifts" No contact was made with customers. All work adhered to sanitized operations.
When does the current lease end?
Just signed up another 3 year lease on the workshop premises.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
What is the square meters of the business?
240 square meter workshop
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
Vehicles and vans that are set up with necessary tooling. There is a comprehensive asset list on file which will be made available to serious buyers
Are any items not included in the sale?
Yes the owners "bakkie" and his computer
What is their overall condition?
Do any require repairing?
The forklift needs some work done on it
How have they been valued ?
At replacement value Priced at R 1,307.000
Which assets are on lease/HP and with whom?
2 X vans are on finance with a maximum of R 100,000.00 left on a finance plan.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
This is open to negotiation with a serious buyer....both will be considered
Are copies of agreements available?
Are they presently insured?
This Pirtek branch has grown at a 59% rate over the past 2,5 years, year on year. The name is well known and is highly respected. It is the ONLY mobile service company that works on a 24/7 basis, and works on site when called out. BEE buyer would escalate the business dramatically and would need to have good management in place.
BEE is still a "stumbling block" to increasing growth at an even larger rate.
Many of the "carriers" are, or have, already moved up to the Midlands Corridor area and are developing a growing relationship with the company.
Economy requires an URGENT revival after Covid 19
What is the reason for the sale?
The owner is a qualified engineer and would like to develop into a design capacity position , which is his forte. The Administration manager wishes to downscale into retirement
Why is this a good business?
This company has developed into an extremely good business over the past 3 years and is now ready to be taken to the next level. It is respected by all customers for offering quality service at any time day or night.
What is the price plus stock and the profit?
Selling Price R 2,800,000.00 PLUS STOCK.(Stock is currently at R 1,300,000) Debtors will be taken over by the new owner.
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