Fully describe the business's activities?
The business sells, repairs and fit canopies, car radios, car alarms, poly lining on bakkies, cameras on vehicles, styling bars, tow bars and bull bars etc.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business has longstanding area exclusive agreements with two top and prominent suppliers. All the local and neighbouring town's car dealers send their new and used vehicles for various types of fitments or installations.
How are the clients attracted to the business?
The business is established for a long time and well known by locals and all car dealers in the area for excellent service, good product knowledge and trustworthy conduct.The business has a good location with high visibility. Word of mouth plays a big role in promoting the business.
What Advertising/Marketing is carried out?
No formal advertising is currently being done.
Does the business have any contract work?
No formal contracts with car dealers but the exclusive area rights from top brand suppliers ensure exclusive selling and fitment/ installation of these brands.
What competition exists?
No competition of note exists.
What are the seasonal trends?
No specific seasonal trends, good trade all year.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The Covid- 19 pandemic did have an impact on the business, it seems however that the motor accessories sector are recovering faster than the rest of the motor industry. The business did close for April & May but are operating now as normal.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
All employees did receive Ters (UIF) benefits.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
Comprehensive VAT returns will be made 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?
Financial Statements for 29/02/2020 are available. Previous years are also available.
What percentage of the business is cash/credit?
80% of business is cash. Some motor dealers do have credit arrangements with the owner.
How could the profitability of the business be improved?
There is scope to introduce and stock new brands and lines of accessories.
Is Seller finance available and for what amount?
To be discussed.
What is the total staff complement?
A total staff complement of 5.
Give a breakdown of staff/ functions/ length of service?
A company organogram is available.
Do any receive special perks or incentives?
No special perks applicable.
Are they on contract?
Normal Labour Law applies.
Do any have management potential?
Yes, the one employee already acts as a manager. There is also another employee with capabilities/ potential to act as a manager.
How involved is the Owner in running the business?
The owner is hands on and 100% involved on a daily basis.
When does the current lease end?
The lease is renewed on a yearly basis.
Is there an option of renewal & what period?
Yes, for 1 year. The owner has a very good relationship with the landlord.
What is the annual escalation %?
Escalation between 5-7% . To be negotiated on a yearly basis.
What are the trading hours?
Mon- Thurs 08H- 17H00. Fri 08H00- 16H00.
What is the square meters of the business?
Is a copy of the lease available?
Yes a copy of the lease is available.
Do you require a licence?
No special licence is required.
What lease deposit and/or other surety is required?
A deposit of 1 months rent. Currently R8,100 pm. The business has a deposit/ surety for R22,500 for consignment stock at one of their suppliers.
What are the main assets of the business?
Work shop Machinery and Equipment. Office Furniture and Equipment.
Are any items not included in the sale?
All items are included in the sale.
What is their overall condition?
All items are in a good working condition.
Do any require repairing?
Normal routine maintenance applies.
How have they been valued ?
Owners and brokers valuation.
Which assets are on lease/HP and with whom?
No assets are on lease.
Are they presently insured?
All assets and stock are insured.
Long established and well known. Well trained and competent staff. Longstanding and good relationships with top brand market leading suppliers. Supported by all car dealerships in the area over a long period. Only professional vehicle fitment centre in the area.
No obvious weaknesses were detected.
To expand product range and services rendered.
No specific threats- general state of the economy is a concern.
What is the reason for the sale?
The owner started a new business not related or in this sector.
Why is this a good business?
The business is in a sought after area for relocations. The business is relative easy to run with good staff. The business has low overheads. The business is in a market where price is less important than brand and style. The business has a long history of profitability and sustainability.
What is the price plus stock and the profit?
Price R1,500,000 + stock +- R100,000 = R1,600,000. Profit R513,000 per annum.
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