Sectors / Category

Annual turnover

  • Mandate: 34364
  • Added: 13 Jan 2021
  • AFS
  • 212

Franchise Vehicle Service & Repair Centre

Western Cape, Cape Town
Mandate 34364
Added 13 Jan 2021
R 1,700,000* ZAR
Stock: R 20,000
Assets: R 315,000
R 60,926 ZAR
Hetta du Preez
Aldes Alpha
Western Cape
Western Cape

R 1,700,000* ZAR
Stock: R20,000
Assets: R315,000
R 60,926 ZAR

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Fully describe the business's activities?
Services & repairs to all makes of motor vehicles, including bakkies, SUV's, 4x4's and small trucks.

How long has the business been established?
The owner established the business 3 years ago as a franchised store but it was trading as a privately owned store for many years at the same premises.

How does the business operate on a daily basis?
Customers make bookings and bring the vehicle to the workshop where after they will be dropped off at work or business if so required. The work that needs to be done on the vehicle is as per the job card.

How are the clients attracted to the business?
Social media, word of mouth and return customers.

What Advertising/Marketing is carried out?
Facebook, Google Adwords, Pamphlets, Signage on the shop front and Pilon.

Does the business have any contract work?
Yes, Discovery Health Members Vehicle Assessment Plan.

What competition exists?
There are various competitors in the market. In the market space where the business operates the main competition are Car Care Clinic, Car Service City and Auto Care.

What are the seasonal trends?
In normal conditions, the business does not have mayor turnover fluctuations.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was severely affected March to May 2020 and is still not back to previous levels. In general, turnover is down with ±35% compared to the previous financial year.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Staff reduction, increase ad-spend and contacting existing customers telephonically.

Is the business VAT Registered?
The business is a registered VAT Vendor.

What VAT documentation is on file?
We do not have any VAT documentation on file, but it will be provided to serious buyers on request.

Are there up-to-date Management Accounts available?
Management accounts up to November 2020 are on file and available on request.

What percentage of the business is cash/credit?
The business does not carry any debtors. Payments are made by actual cash (banknotes) 10%, Insurance 5%, Credit or Debit Cards 85%.

What is the age analysis of the debtors book?
All work is done on a cash basis.

How could the profitability of the business be improved?
Attract more fleet customers. Enter into preferred supplier arrangements e.g. Innovation Group. If owner run, the savings on salaries will be substantial. The business will benefit from hands-on management.

Is Seller finance available and for what amount?
No, the seller wishes to be paid before takeover.

What is the total staff complement?
5 Staff members.

Give a breakdown of staff/ functions/ length of service?
Manager - 3 years; 2 x Technicians - 6 months; Service Advisor/Reception - 1 year; (highly rated by seller); Cleaner - 2 months.

Do any receive special perks or incentives?
The manager enjoys a profit share arrangement which will be discussed in detail with the seller.

Are they on contract?
All staff are permanently employed with signed employment contracts.

Do any have management potential?
The Service Advisor is considered to have management potential.

How involved is the Owner in running the business?
The owner is not residing in the Western Cape and only manages remotely.

Any special arrangements for the staff related to the Covid-19 pandemic?
The normal prescribed rules like sanitation, 1,5m distance and the wearing of facial masks apply.

When does the current lease end?
December 2021.

Is there an option of renewal & what period?
2 year renewal option is available.

What is the annual escalation %?
9% p.a.

What are the trading hours?
Weekdays 07H30 - 17h00; Saturdays 08h00 - 13h00.

What is the square meters of the business?

Is a copy of the lease available?
The seller will make a copy of the lease available on request.

Do you require a licence?
No licence is required to operate the business, but the purchaser must be approved by the Franchisor.

What lease deposit and/or other surety is required?
A deposit equivalent to 1-month rental will be required.

What are the main assets of the business?
Mechanical tools and equipment. Hoists x 2; Special Tools; Diagnostic Tools.

Are any items not included in the sale?
All items as per the asset list are included in the sale.

What is their overall condition?
Good operational condition.

Do any require repairing?

How have they been valued ?
By the owner at secondhand market values.

Which assets are on lease/HP and with whom?

Are they presently insured?
All assets and relevant business risks are insured.

Strong Brand Name; Excellent Workmanship; Bold Signage.

Disloyal technicians and customers; Not enough marketing support.

Santam & Discovery Contracts; Fleet Customers; Dealer Contracts.

Low barriers to entry; Lease continuation ???????

What is the reason for the sale?
Owner wishes to relocate to Hermanus and wants to open a similar business there.

Why is this a good business?
If properly managed and in normal market conditions the business offers high returns.

What is the price plus stock and the profit?
Asking price is R1 700 000. Average monthly profit for the period December 2019 to November 2020 is ±R61 000 before owners drawings, depreciation and tax. The business was manager run up to now as the seller is still based in Gauteng. The price and profit are based on an owner-operated business.

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