Fully describe the business's activities?
The business is a franchised building and related hardware supplier in an touristic expansively developing area in Mpumalanga
How long has the business been established?
How long has the owner had the business?
For the past 4 years
How does the business operate on a daily basis?
The business operates as a franchised hardware and building supply services retailer . 70 % of the stock is bought through the franchisor and some stock is on consignment with a 45 day account with the franchisor. The business supplies stock directly to the public from a retail outlet and to the building wholesale traders, developers and builders .Some of these traders have accounts with t he business. There is no stock included in the purchase price of the business.This average stock on hand amounts to an additional 3 million which can be paid off to the franchisor if the franchisor approves of the credit limit of the new owners application .Any prospective buyer will firstly need to be approved by the franchisor for the business and the landlord for the lease.
How are the clients attracted to the business?
The business is situated within the main stream town enjoying a niche exclusive market.In addition the business is a well know and reputable franchised suppliers of building and related materials to the developing building industry.
What Advertising/Marketing is carried out?
The franchiser advertised special on a national basis for all its franchisees .The franchisee from time to time may run his own specials in his area this is done by means of media
Does the business have any contract work?
What competition exists?
2 much smaller retailers operate within range of the business however with much less variety and amounts of stock to supply the same building industry . The business is afforded better prices to supply due to the franchisors buying power offer supportive stock levels on account ,stock variety and quantities as well as competitiveness prices as that of the other competitors .
What are the seasonal trends?
The business is consistently busy from February to November business is less active over the December period as all the builders close down from December 15 to January 15
How did the Covid-19 pandemic impact the business turnover / daily operations?
During the physical weeks of lock down the business was not able to trade this has had a income impact on the business.However since lock down restrictions have eased the business is resuming to its normal operations
Is the business VAT Registered?
What VAT documentation is on file?
All historical and to date is available for any financially qualified buyers to peruse
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
For the period March 2020 to 31st December 2020
What percentage of the business is cash/credit?
There is a 60 % account and 40 % cash
What is the age analysis of the debtors book?
The latest aging is 90 days
How could the profitability of the business be improved?
By adding additional lines to the current compliment and increasing operational space to accommodate such
Is Seller finance available and for what amount?
No seller finance
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
There is i an employees list available for perusal
Do any receive special perks or incentives?
There are 4 managers .The owner and 1 main manager run the business .They do receive an annual bonus
Are they on contract?
Do any have management potential?
Yes there are 4 managers , among them one main manager
How involved is the Owner in running the business?
The owner and the managers run the business, the owners is active in the business but it can operate without him actively involved.
Any special arrangements for the staff related to the Covid-19 pandemic?
Only the legally required rules and regulations surrounding the awareness of safety in this regard
When does the current lease end?
2023 with an option to renew
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
7:00 17:00 Monday to Friday and 8:00 to 13:00 Saturdays . Closed Sundays.
What is the square meters of the business?
Is a copy of the lease available?
Yes there is a copy of the lease on file
What lease deposit and/or other surety is required?
There is one months rental security deposit required
What are the main assets of the business?
computers, shelving office furniture, key cutting machine printers telephone system, glass racking , signage electric fencing air cons, vehicles . The business will require a cosmetic upgrade in the next 2 years and this it is estimated will cost around 300,000 Vehicles not included in the sale.
Are any items not included in the sale?
All the vehicles are not included in the sale
What is their overall condition?
Do any require repairing?
How have they been valued ?
The asset value is at R 1 150 000
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Buyer to take over
Are copies of agreements available?
Are they presently insured?
The business has outgrown its current premises so it could highly benefit from increasing its operational space and adding more stock which in turn will generate more revenue
What is the reason for the sale?
The seller has other business interests
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