Fully describe the business's activities?
The business undertakes the powdercoating of mild steel, cast iron, stainless steel and aluminium as well as glass. Shotblasting of steel and iron and sandblasting services are available for metal and glass. Decorative sandblasting and commissioned work undertaken.
How long has the business been established?
How long has the owner had the business?
What steps are in place to solve 'load shedding' problems?
There is a diesel powered compressor and "preparation" work is done during "load shedding"
What is the average KW usage?
How are the clients attracted to the business?
Website, word of mouth and repeat work from satisfied customers.
What Advertising/Marketing is carried out?
No formal advertising/ marketing is currently being done.
Does the business have any contract work?
No contract work but a client base established over a 39 year period. The business used to have a client which used this business exclusively. To be discussed with serious and qualified buyers.
What competition exists?
There are other businesses offering similar services however this business has an unique custom built facility which give them an edge over other businesses.
What are the seasonal trends?
The business is extremely busy from October to December due to annual shutdown of most businesses. This business has traditionally had an annually shutdown period of four weeks from the last week of December until the end of third week of January.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was severely impacted as most businesses were.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
Comprehensive VAT returns will be available to qualified buyers.
Are there up-to-date Management Accounts available?
Yes, up-to-date Management Accounts will be made available to qualified buyers.
What Balance Sheet and Income Statements are available?
Audited Financial Statements for 29/02/2020 are available. Previous years are also available.
What percentage of the business is cash/credit?
90% cash business.
How could the profitability of the business be improved?
Diversify to manufacturing and do own powder coating.
Is Seller finance available and for what amount?
To be discussed.
What is the total staff complement?
A total staff complement of 5. Owner and wife excluded.
Give a breakdown of staff/ functions/ length of service?
Most of the factory workers are long serving employees.
Do any receive special perks or incentives?
No special perks, but are well look after.
Are they on contract?
Normal Labour Law applies.
Do any have management potential?
Yes, there is management potential among the staff members.
How involved is the Owner in running the business?
The owner is semi- retired. Only visit the factory for maintenance work when required.
Any special arrangements for the staff related to the Covid-19 pandemic?
Working according to "lock down" regulations. All employees received their UIF(Ters) benefits.
When does the current lease end?
The owner is also the landlord.
Is there an option of renewal & what period?
To be negotiated. The property (land & buildings) is available to be sold. The owner will prefer a total package deal.
What are the trading hours?
Mon- Thurs 07h00- 16h00, Fri 07h00- 13h00.
What is the square meters of the business?
+- 1000 Sqm.
Do you require a licence?
No special licence is required.
What lease deposit and/or other surety is required?
If rented, 2 months rent.
What are the main assets of the business?
1) Various Stainless Steel Tanks, 2) 2x Converted 6m Containers, 3) Various Compressors, 4) Diesel Powered Compressor, 5) 13x Coating Booths, 6) 14x Cyclones, 7) 13x Power Coating Guns, 8) 8x High Pressure Wap Cleaners, 9) 2x Battery Operated Forklifts, 10) 6,5m Gas Oven 11) 2x Gas Camel Back ovens Plus: ++++ Plenty !!Full comprehensive asset list is available to qualified buyers.
Are any items not included in the sale?
All factory assets are included in sale. A few paintings and decor items in office not included.
What is their overall condition?
95% of assets are in a good working condition.
Do any require repairing?
There are one or two items which need some repairs/ maintenance.
How have they been valued ?
Owners and Brokers valuation. The replacement valuation is estimated at R3m plus.
Which assets are on lease/HP and with whom?
No items are on lease.
Are they presently insured?
All assets are insured.
- Competent, long serving and loyal employees. - Excellent reputation over a very long period. - Longstanding customer relationships. - Longstanding suppliers relationships. - Very good industry knowledge.
There may be more modern and cost effective machinery in the market place. No recent effort to attract new clients.
To attract new clients. Follow new market trends. Modernize some equipment over a period. To approach old lost client to reconsider relationship (to be discussed with qualified buyer)
General state of the economy is a concern.
What is the reason for the sale?
The owner is 81 year old. He and his wife want to retire!
Why is this a good business?
This is a solid business over a long period. Due to certain events activities have slowed down. The asking price, lower than asset value is a great opportunity for a next owner to excel with the machinery, equipment and staff available to him.
What is the price plus stock and the profit?
Price R800,000 + stock +- R50,000= R850,000. Annual profit for the year ended 29/02/2020, R239,000.
Annual Turnover Amount between R 500 thousand and R 6 million