What is Aldes Business Brokers all about?
Aldes Business Brokers (established in 1979) act as expert Brokers for Sellers of businesses by sourcing qualified suitable Buyers.
We predominantly service the SMME market through our national footprint and established network of Agencies. Aldes has more than 40 outlets across South Africa and Namibia with representation in the UK.
We make use of bespoke online systems to analyse, value, market and report on any business in the market.
The Group is successful and results driven, selling more businesses than any other in Africa
Covid-19 has seen a big uptick in enquiries from both Sellers and Buyers - business people are looking for solutions on both sides of this equation. This represents an excellent opportunity for our Brokers
How does the business operate on a daily basis?
As an Aldes Agency your daily tasks consist of meetings with business owners, analyzing and reporting on financial statements, conducting valuations of businesses, discretely marketing businesses for sale, guiding and advising both sellers and buyers on the process of buying / selling a business.
How are the clients attracted to the business?
The Aldes brand is known to many role-players in the SME market.
A user-friendly website that enjoys a solid Google rating attracts many enquiries for each Aldes Agency.
Neat marketing material, pamphlets and leaflets in printed format.
A Nationwide network and referral arrangement.
What Advertising/Marketing is carried out?
Brokers rely on, and cultivate, wide professional networks.
Pamphlets and leaflets.
Website.
Local newspaper adverts
Some area specific adverting on radio.
Does the business have any contract work?
NO.
You will however conclude an agency agreement with Aldes Head Office.
What competition exists?
There are many competitors in the market
What are the seasonal trends?
No specific seasonal trends.
Most of the Aldes Agencies take a break during the festive seasons - April and December.
How did the Covid-19 pandemic impact the business turnover / daily operations?
During 2020 the Government's State of Disaster plan had a massive impact on the industry as a whole.
Currently our Agencies are however inundated with enquiries.
We expect this trend to continue through 2021 and 2022.
Aldes is actively marketing and seeking new Agencies in order to keep up and service the demand for our services.
How could the profitability of the business be improved?
A structured marketing plan for the first 6 to 12 months.
Utilizing established networks.
Offering service to existing customers.
Give a breakdown of the income and expenses
The figures displayed in this report reflects the actual income and expenses of an agency in its first year of operation - Single broker for the period March 2019 to February 2020.
Monthly expenses are low.
Income is totally dependent on the efforts of the individual.
Many brokers expect to make is excess of R 1 million p/a in commissions once they are established
What are the monthly costs?
Basic expenses are as follow:
- Monthly management fee of R2 000 (plus VAT)
- Advertising and marketing
- Cell phone and data lines
- Petrol and travelling expenses
- Printing and stationary
The operating model for an Aldes Agency is based on low overhead expenses.
Is it a requirement for a new Aldes Agency to be VAT registered?
No, it is not required.
We do however recommend that you register as a VAT vendor.
How involved is the Owner in running the business?
The Aldes Agency is personal to the individual applying.
Whiles you're allowed to structure your Agency as a separate entity, we do not allow or approve "investor" applications.
The owner of the agency must be 100% committed and involved in the daily operations of the practice.
Do I need staff to start up as an Aldes Agency?
This is not a requirement.
Many successful agencies operate as a single broker.
We do however recommend that a secretary or assistant be employed to cater for the workload.
Is it a requirement to setup an office?
You are not required to rent office space.
Most of daily interactions with clients are at their place of business.
A professional looking study , shared or remote office where one can meet with client undisturbed is sufficient.
What type of office equipment is required?
The following short list as a guide:
- Proper data lines and internet connection
- Laptop or desktop
- Printer & Scanner
- Desk & Chair
- Office stationary
Strengths?
Leading business brokerage in Africa.
Support and assistance from Aldes Head Office
Intense and practical initial training provided
Exceptional online systems and application
Established name in the market
Low monthly expenses
Head Office share both benefit and risk with each Agency
Weaknesses?
Access to funding for transactions can be tricky
Our training and networks can help alleviate this concern
Opportunities?
The Aldes Agency presents a real opportunity to financial planners with a client base of business owners and / or high net worth clients. The Aldes Agency dovetails very well with the activities of a typical FSP practice
Some of our most successful brokers stem from a background in the financial services industry.
Many have also come from a successful corporate background, and several are also past owners of SMME's themselves.
Threats?
The sales cycle is fairly lengthy - a new entrant should cater for several months of limited cash flow while establishing themselves. Once a 'pipeline' is established, earning potential is effectively unlimited
What is the Franchise joining Fee?
Initial joining fee of R200 000 plus VAT
What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
A monthly management fee of R2 000 plus VAT.
Royalty fees of between 10% and 20% can be negotiated.
An expected marketing contribution of R1 000 per month
What extra marketing and advertising should a franchise budget for?
We allow each Agency to create his/her own agency website to promote his/her businesses for sale.
Can the franchise be operated from home?
YES.
We allow our Brokers to operate from home.
What skills and background is the franchisor looking for in a prospective franchisee?
The potential Aldes Broker must have a tertiary qualification.
A marketing or sales oriented individual will benefit from our bespoke business broking application.
A background in the financial service industry is what we're looking for.
No criminal records or judgements.
Is there any industry regulations or licenses needed to operate the franchise?
Our industry is regulated by the Estate Agency Affairs Board (soon to be the Property Practitioners Regulatory Authority)
As a broker you are required to register as an agent and apply for a Fidelity Fund Certificate.
Annual Turnover Amount between R 500 thousand and R 6 million