Fully describe the business's activities?
The business is a contract painter to complexes and individual houses.
How long has the business been established?
The franchise was purchased by the owner 12 years ago.
How long has the owner had the business?
The franchise has been in existence for more than 30years. This franchise was purchased 12 years ago to develop the Ballito market.
How does the business operate on a daily basis?
Customers, including maintenance supervisors of large complexes, request quotations for the scope of work that they want done. Once the quotation is prepared and accepted, a team is allocated to the project, raw materials purchased and the project is executed.
How are the clients attracted to the business?
The majority of work is obtained on the strength of the company's reputation in the area.
What Advertising/Marketing is carried out?
While the business does have a website and facebook page, minimal marketing is carried out.
Does the business have any contract work?
The contracts are all short term to complete existing projects.
What competition exists?
While there is always competition from the bakkie brigade, complexes tend to want reliable contractors who have a reputation for excellent standards of workmanship.
What are the seasonal trends?
Holiday seasons tend to be quieter with the December/January holiday being very quiet as complexes prohibit contractors working during builders holidays.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The Covid-19 pandemic has had a severe influence on turnover figures as the maintenance of buildings was not prioritised during the period. This maintenance does however need to be done and a busy catch-up period is expected.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
All staff have been trained and equipped to operate safely.
Is the business VAT Registered?
The business is Vat registered.
What VAT documentation is on file?
All Vat documentation is available.
Are there up-to-date Management Accounts available?
Management accounts are about 2 months behind.
What Balance Sheet and Income Statements are available?
The year ending Feb 2020 is available.
What percentage of the business is cash/credit?
All jobs are paid on completion with very little cash payments.
What is the age analysis of the debtors book?
The debtors book sits at about 45 days.
How could the profitability of the business be improved?
The business has concentrated on painting but its services could be expanded to include waterproofing as well as the repair of rusted reinforcing in buildings. Improved marketing efforts, like the visiting of maintenance supervisors and managing agents could increase the number of contracts obtained.
Is Seller finance available and for what amount?
Seller Finance is not available.
What is the total staff complement?
In addition to the owner, 2 people are employed on a full time basis. The work is carried out by subcontracting teams who are employed when required. Before the pandemic, these teams were continuously employed by the company.
Give a breakdown of staff/ functions/ length of service?
The owner is responsible for marketing and quoting. The admin person is responsible for ordering and financial processing, The site supervisor is responsible for getting materials to site, the quality and progress of site works.
Do any receive special perks or incentives?
No special incentives are applicable.
Are they on contract?
Both have normal employment contracts.
Do any have management potential?
In particular, the admin person is very capable and runs the business in the owners absence when required. This gives the owner great flexability.
How involved is the Owner in running the business?
The owner is involved on a full time basis but not for 8 straight hours a day nor for 5 days a week.
Any special arrangements for the staff related to the Covid-19 pandemic?
Staff are equipped with the normal PPE.
When does the current lease end?
The owner operates this business from home.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
The business trades for 5 days a week from 7 to 4.
What is the square meters of the business?
This is a home office for the owner and the admin person.
Is a copy of the lease available?
Do you require a licence?
A normal business license is required.
What lease deposit and/or other surety is required?
What are the main assets of the business?
The business uses a Hyundai H100 bakkie for the delivery of materials to site. In addition there is scaffolding, high pressure cleaners and normal painting equipment.
Are any items not included in the sale?
Only the owners personal vehicle is not included in the sale.
What is their overall condition?
All equipment is maintained in functioning condition.
Do any require repairing?
Repairs are done when required but there are no outstanding repairs.
How have they been valued ?
Assets have been valued on an estimated replacement cost basis.
Which assets are on lease/HP and with whom?
No equipment is on HP.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The vehicle is insured.
The greatest strength of the company is its strong reputation for quality workmanship delivered on time. This results in many repeat orders in an area that has sizeable accommodation complexes where money from levies means that the budget for repainting is always available. A further strength is the reliable and consistently good sub contractors used by the company. The company is also easy to manage with few permanent staff.
The company has focused purely on painting and has not diversified into the allied disciplines of waterproofing, damp proofing and the repair of rusted reinforcing in concrete buildings.
Increased marketing efforts to managing agents and building supervisors should increase the available work into the future. The additional services mentioned above could further increase turnover. The growth and development of the northern Natal coast will also increase available work in the future.
The bakkie brigade will always pose a threat on the lower end of the market (mainly individual residential units).
What is the reason for the sale?
The owner is in the process of Emigrating.
Why is this a good business?
This company has a bright future in the hands of a dedicated new owner and should achieve substantial growth off the strong base that has been developed in the last 12 years.
What is the price plus stock and the profit?
The business is for sale for R410,000 off a historical monthly profit of R28,281.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million