Fully describe the business's activities?
As one of Johannesburgâs premium full-service curtain and blinds stores with over 35-years of track-record of attractive sellerâs discretionary earnings and growth: â¢ The business delivers soft furnishing projects end-to-end, including consulting, sourcing, assembly and installation, offering the full interior decorating product palette, including curtains, indoor and outdoor blinds, rugs, wallpaper, and window automation. â¢ The company specializes in customer-specific solutioning and customization, but can also provide more standardized products via its Blinds Express and Curtain Express brands.
How long has the business been established?
The seller started the business 34 years ago.
How long has the owner had the business?
How does the business operate on a daily basis?
The Business offers the following Product and service Categories; - Curtains: Made-to-measure, all styles, all fabrics, any size - Curtain Hardware: Rails, runners, hooks and holdbacks - Curtain Accessories: Tiebacks, tassels, fringes, pelmets, fasciasand and finials - Blinds: Wooden, bamboo, roller, Roman, sliding panel, aluminium venetian, duette, string, outdoor, motorised, Vision, skylight - Motorisation: Blindsand curtains - Upholstery and soft furnishings: Custom fabrics for new and re-upholstery, scatter cushions - Rugs: Imported Turkish rugs across the full design spectrum - Wallpapers: Variety of quality wallpapers The Business advises customers on product and design requirements, procures the materials, organizes manufacture and customization with external manufacturers, install the products and provides after sales support.
How are the clients attracted to the business?
The Business has one of the most comprehensive, modern and attractive curtain and blind show rooms in Johannesburg: â¢ 34 years of track record has established the business as the go-to destination for curtains and blinds in the North â¢ Customer book with >9,000 clients on record (past 10 years, since start of digital CRM); 25-30% repeats â¢ 200sqm of display space â¢ Frontage off a busy main road with easy and secure parking â¢ Option of an out-sourced workshop on premise provides for maximum operational flexibility â¢ Fully established websites and social media presence, with >4,500 Facebook likes â¢ Attractive blend of blinds/curtains, as well as small/large customers, provide a diversified revenue base â¢ Business set up with three related brand positions to maximize traffic and growth opportunities SHOWROOM CUSTOMERS OFFERING â¢ Full interior decorating product spectrum and end-to-end project delivery capability ensures opportunity for maximum margin generation and control of the creative process â¢ Systems and processes fully established in the business deep routed expertise of sales and operations staff â¢ Established and deep relationships with South Africaâs foremost fabric and blinds suppliers
What Advertising/Marketing is carried out?
â¢ Estd. 30% of transactions are by repeat customers. â¢ Estd. 30% of transactions are by referrals (from other customers, suppliers, trade partners). â¢ Estd. 20% walk in clients â¢ Facebook, Website â¢ Location with excellent road frontage on a major arterial â¢ A number of billboards across town â¢ Ad hoc pamphlet drops
Does the business have any contract work?
What are the seasonal trends?
Spring to Christmas sees slightly greater customer interest
How did the Covid-19 pandemic impact the business turnover / daily operations?
The Business closed operations for the duration of the hard lockdown. It is well on track since back in operation from 1 June, with sales immediately recovering (and slightly exceeding) pre-lockdown performance
What is the total staff complement?
10 of which 3 are freelance.
Give a breakdown of staff/ functions/ length of service?
â¢ Sales (5): between 5 and 20 years with the business, average >10 years â¢ Operations and Production Coordination (1): 10 years â¢ Installations: (2):15- 20 years with business each â¢ Chief of staff / Administration: 2 years â¢ Cleaner: 1 year
Do any have management potential?
Yes, with continued oversight and senior management support
How involved is the Owner in running the business?
The owner is involved daily
When does the current lease end?
The current lease expires in 18 monthsâ time (March 2022) but there is an option to renew.
Is there an option of renewal & what period?
Yes, as required by the buyer.
What is the annual escalation %?
What are the trading hours?
Monday to Friday from 8:00 to 16:30. Saturdays from 9:00 to 13:00
What is the square meters of the business?
350sqm, of which 200sqm display area
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
OPERATING ASSETS â¢ Computers, printers, network equipment â¢ Fixtures and Fittings â¢ Stock âdisplay items, furniture, etc. GOODWILL AND CONTRACTS â¢ Registered brand and trademark as intellectual property â¢ Employment agreements â¢ Internet and social media sites â¢ Lease agreement â¢ Supplier relationships â¢ Customer database VEHICLES â¢ 2x Branded VW Caddy â¢ 1x Branded Hyundai H3 âbank financed â¢ 1x Branded VW Golf 3 â¢ 1x Branded Mercedes Vito
Are any items not included in the sale?
What is their overall condition?
Very good; vehicles condition: fair.
Do any require repairing?
How have they been valued ?
At second hand value.
Which assets are on lease/HP and with whom?
One of the Vehicles is on lease and the lease obligation is to be taken over by the Buyer.
Will Seller settle or Buyer to take over?
Buyer to take over
Are copies of agreements available?
Are they presently insured?
â¢ Strong brand presence in the local market â¢ Self-funding business â deposits fully cover costs of goods sold and there is minimal inventory holding requirement â¢ Fully established operational processes and procedures â¢ Business has generated attractive income for founder over 35 years â¢ A well-established team that has been with the Business for many years and is well experienced. â¢ Excellent software developed over time to assist with ease of quotes etc.
â¢ Requirement for buyer to be involved in operations â âhands on businessâ
REVENUES â¢ Ability to rapidly scale operation at low cost by adding further freelance sales agents â¢ Commercial partnerships with architects/quantity surveyors, developers (e.g. Century) and designers â¢ Aggressive sales in estates and new housing complexes â¢ Development of franchise stores in other geographies â¢ Fully fledged development of Curtain Express and Blinds express brand concepts â¢ Grow online presence (10% of customers now come via online lead generation; sales are not yet processed online end-to-end) BOTTOM LINE â¢ Unlock 2-3% points in gross margin through increased management oversight of ordering and quotations â¢ âFresh set of eyesâ to drive operational improvements and efficiencies
â¢ Market moving to standard, un-customised low value offerings (e.g. Builders Express) â¢ Currency exposure on imported hardware could affect price points
What is the reason for the sale?
The seller, owner-founder is looking to retire and will be available for a decent hand over period.
Why is this a good business?
This is a good, neat and well established operation being offered at a great price in order to facilitate a quick sale as the owner is fairly aged and wishes to retire. The business will suit both male or female buyers due to the current infrastructure, processes, and quality team set up in the operation
What is the price plus stock and the profit?
The selling price is R3,5m with an annual ebitda profit of R1.227m for F2020 and before owners remuneration. Although the business had to close for a while during lockdown, sales are well on track and F2021 should be another good year for the business. Details on the business will only be given once the Buyer has been qualified (Buyer affordability) by the broker and go ahead received from the seller for further introduction.
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