Fully describe the business's activities?
Established in November 1991, the Practice offers specialist consulting engineering services in electrical, electronic, mechanical and information systems engineering and related disciplines from its office in Port Elizabeth, South Africa. The Firm is a member of the business association Consulting Engineers South Africa (CESA), membership of which is a recognition of the status and professional basis of the Firm. CESA membership carries many obligations which impact positively on the quality of services performed and reinforce the Firmâs commitment to serving clients in terms of the CESA Code of Conduct with professionalism, integrity and independence of judgement. Professional engineering services are provided to a variety of Government, Provincial, local authority, industrial and commercial clients in many different sectors. The Firm is registered on the consulting engineers' panels of various client organisations.
How long has the business been established?
Established in 1991
How long has the owner had the business?
Since the inception in 1991
How does the business operate on a daily basis?
The Engineer works from a self contained detached premises at home and possesses all necessary computer hardware , software , printers, data bases and referral material to accomplish his work. Site visits and inspections are done on a periodic basis by appointment with other involved parties such as consultants, engineers, builders and installers.
How are the clients attracted to the business?
Projects are published for tender purposes and the firm would tender with the advantage of a BBBEE rating of level 4.
What Advertising/Marketing is carried out?
For the last decade, most work has been via government " supplier Databases"
Does the business have any contract work?
All work is done on a tender basis and contracts are concluded to protect all parties involved in the project.
What competition exists?
Limited competition from other consultants
What are the seasonal trends?
No seasonal trends as some projects are lengthy and time consuming.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The Engineers worked from home on existing projects and were not interrupted by the pandemic lockdown. However, payment delays did occur.
Is the business VAT Registered?
Yes, the business is VAT Registered.
What VAT documentation is on file?
All bi-monthly VAT Returns for the last 12 months on file.
Are there up-to-date Management Accounts available?
Yes, up to date Management Accounts available.
What Balance Sheet and Income Statements are available?
Annual financial statements for 12 month period ending February 2020.
What percentage of the business is cash/credit?
The payment of each project is negotiated and differ from project to project. Payment on lengthy projects are normally paid at intervals when certain objectives and goals have been achieved.
Is Seller finance available and for what amount?
Sellers finance is not available.
What is the total staff complement?
The practice employs 3 staff members of which one is the Principal member.
Give a breakdown of staff/ functions/ length of service?
a)Owner of the Close Corporation is the Principal Engineer. b) One Practice Manager and Financial Officer. c)One Professional technician. d) Two Technical assistant
Are they on contract?
Not on contract, but on a casual basis.
Do any have management potential?
All technicians have excellent managerial skills.
How involved is the Owner in running the business?
The owner is 80% involved in the running of the business.
When does the current lease end?
The Principal Engineer works from a self contained detached premises located at his home. This business is ideal for working from home for all engineers, technicians and assistants.
What are the trading hours?
The general working hours is 8am to 5 pm mondays to fridays. The Principal Engineer does have the right to lengthen working hours if projects are behind on schedules.
What is the square meters of the business?
Office space of +/- 35m2
Do you require a licence?
The business does not require a licence , but registration of the owners/memberswith the Engineering coucil of SA (ECSA) as PREng or PrTech(Eng) is compulsary.
What are the main assets of the business?
The main assets of this business in the professional integrity of the employers. The quality of the work generates recurring consultations. The practice is fully computerized with updated hardware, software, printers, etc to integrate with other systems and databases. The list of assets also include a cash deposit of R 2000 000
Are any items not included in the sale?
The motor vehicles are not included in the Sale.
What is their overall condition?
Well maintained and excellent working condition.
Do any require repairing?
No repairs required at this stage and seller guarantees all assets and equipment will be in good working order on date of take over.
How have they been valued ?
At a realistic market related price.
Which assets are on lease/HP and with whom?
Konica Minolta C364e multifunction printer/copier/scanner leased from KMSA. balance of lease approximately 2 years left.
What are their settlement amounts?
On a decreasing balance each month, settlement figure to be determined when qualifies buyer requests.
Will Seller settle or Buyer to take over?
Buyer to take over.
Are copies of agreements available?
Full copy of agreement available
Are they presently insured?
All assets are comprehensively insured. The practice enjoys a Professional Indemnity Insurance cover of R 17 000 000.
This is a well established Consulting Engineering business and considered an icon in its industry. This business boasts a BBBEE level 4 grading which will open many doors to Government and local municipal projects. The business is well equipped with "state of the art" technology, computers, all required software and generating a rewarding profit.
Limited competition from other Consulting Engineers
An excellent opportunity for a young engineer to tap into this mountain of knowledge and experience. The Business is an icon in the industry and respected by all opposition firms.
There will always be a demand for this level of expertise for any projects going forward. A new owner will have to relocate the office and a decision would need to be taken as to " work from home" or to rent premises.
What is the reason for the sale?
The owners wish to retire.
Why is this a good business?
This business is well established for almost 30 years, profitable and an icon in its industry. The Business also boasts a BBBEE grading of level 4 which will open many doors on the way forward.
What is the price plus stock and the profit?
The asking price of this business is R 3 950 000 which included a cash deposit of R 2000 000 and is netting approximately R 50 000 per month for the 12 month period to 28 February 2019
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