Fully describe the business's activities?
The business service and repair motor vehicles, fit tyres and do wheel alignment, fits batteries and also do panelbeating.
How long has the business been established?
The business was started 12 years ago.
How long has the owner had the business?
The seller started the business in 2008.
How does the business operate on a daily basis?
Clients bring their vehicles in for tyres, brakes, batteries, service and repairs and panel beating.
How are the clients attracted to the business?
The business is situated on a busy main road which also attract clients.
What Advertising/Marketing is carried out?
The business pays an individual to do digital marketing, upgrading the website and facebook page.
Does the business have any contract work?
Only three clients have accounts with the business.
What competition exists?
There is a few fitment centres in the area but not close by.
What are the seasonal trends?
March and April are historically slower months.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was closed in April due to Covid. From an average turnover of R300,000 per month prior to covid, the business has started to recover with May at R211,632, June R164,015, July at R278,073 and August at R324,690.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
To be discussed.
Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
VAT documentation will be made available during due diligence.
Are there up-to-date Management Accounts available?
The seller provided us with the turnover figures for the months of March to August 2020
What Balance Sheet and Income Statements are available?
Financial statements for the period ending February 2020 are on file.
What percentage of the business is cash/credit?
Swipe 80% and 20% cash
How could the profitability of the business be improved?
Buy, fix and sell second hand vehicles.
Is Seller finance available and for what amount?
The seller will consider a reasonable offer.
What is the total staff complement?
the total staff compliment is 8
Give a breakdown of staff/ functions/ length of service?
1) Counter - Course parts, quotations , phones, invoices, job cards, etc: R1800 per week 2) Alignment, exhausts, services , shocks, suspension, tow bars, etc: R1650 per week 3) Tyre's, punchers, balancing, cleaning , washing cars,etc: R1500 per week 4) Engine overhaul, services, fault finding, etc: R2000 per week 5) Dino sticks, managing, support on above, payments, purchasing, sousing, etc : owner's son 6) Panel beating/ spray work/ faultfinding: I get a share of profit/ labor costs + support were needed 7) 2 Mechanics: I get a share of profit / labor costs + support were needed
Do any receive special perks or incentives?
No special perks or incentives are paid.
Are they on contract?
The staff are all on sub contract basis, with the exception of the owners son.
Do any have management potential?
The owners son is an all rounder and
How involved is the Owner in running the business?
The owner and his son are 100% involved in the running of the business.
Any special arrangements for the staff related to the Covid-19 pandemic?
No special arrangements for the staff as they are sub contractors and not on employment contracts.
When does the current lease end?
The lease agreement expired and is now on a month to month as the owner is selling.
Is there an option of renewal & what period?
The landlord will negotiate a 5 year lease with the option to renew for 5 years.
What is the annual escalation %?
A buyer will negotiate the conditions with the landlord.
What are the trading hours?
Monday to Friday 7.30am to 5pm Saturdays 8.30am to 1pm
What is the square meters of the business?
Is a copy of the lease available?
To be discussed with a serious buyer.
Do you require a licence?
No license is required.
What lease deposit and/or other surety is required?
One month rental deposit to be negotiated with the landlord.
What are the main assets of the business?
Various workshop equipment as per detailed asset list.
What is their overall condition?
The assets are in working condition.
Do any require repairing?
No immediate repairs are needed, the owner service the machines to maintain working condition.
How have they been valued ?
The owner valued the assets at less than replacement value.
Which assets are on lease/HP and with whom?
The assets are unencumbered.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The business and its assets are comprehensively insured.
Excellent location on a busy road. All the assets needed for this one stop shop.
Covid affected stock supplies.
Buy and sell cars.
General economic decline.
What is the reason for the sale?
The seller wishes to retire and concentrate on his hobbies.
Why is this a good business?
What is the price plus stock and the profit?
The purchase price including stock of R200,000 is R2,000,000
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