Fully describe the business's activities?
This business comprises of 23 vending machines stocking cold drinks, snacks and sweets placed in good locations around Johannesburg. No overheads with 1 staff member and generating good profits.
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 driver drives to the sites on a daily basis refilling the vending machines. The owner will collect takings on bi-weekly basis.
How are the clients attracted to the business?
Convenience and location of the machines. The vending machines are placed in call centres and corporate office parks.
What Advertising/Marketing is carried out?
No advertising is done.
What competition exists?
Competition does not impact sales as the machines service a captive market.
What are the seasonal trends?
There is a rise in sales during the summer months.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Slow down in sales.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
No, the owner has other business interests and basically collects takings from machines. He relies on the driver to ensure all machines are well stocked. The owner does not keep record of sales but each machine generates R1500 to R10 000 net profit every month, depending on location and how frequently the sold out stock is replenished.
What Balance Sheet and Income Statements are available?
A practical due diligence will need to be done to confirm sales.
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
Better stock replenishment.
What is the total staff complement?
1 x driver who also replenishes stock.
Give a breakdown of staff/ functions/ length of service?
The driver has been with the business since inception and runs the business for the owner.
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
The owner is not involved in the business and relies on the driver to monitor the machines and replenish stock.
When does the current lease end?
No lease. The machines are placed in corporate offices.
What are the main assets of the business?
23 vending machines plus stock.
What is their overall condition?
Good working conditions. The machines are serviced regularly.
Do any require repairing?
How have they been valued ?
Owner valuated - second hand value.
Which assets are on lease/HP and with whom?
Kia delivery van 2018 model. Buyer has option of taking over payments. The vehicle has been kitted out with shelving etc. suitable for transporting stock and vending machines.
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Good sites generating continuous income.
Increase number of vending machines. Monitor slow sellers and replace.
What is the reason for the sale?
The owner wants to concentrate on his main business interests.
Why is this a good business?
Easy to run business generating good profits. The business runs itself with a great return on investment.
What is the price plus stock and the profit?
R1 115 000-00 including stock. Annual net profit = R480 000-00
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