Sectors / Category

Annual turnover

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  • Mandate: 34485
  • Added: 21 Feb 2021
  • AFS
  • 89

Franchised Building And Hardware Related Supplier Mpumalanga

Mpumalanga, Other
89
Mandate 34485
Added 21 Feb 2021
R 6,400,000* ZAR
Stock: R 0
Assets: R 1,150,000
R 70,182 ZAR
Debbie Sardoz
(PRINCIPAL)
Aldes Lowveld
Mpumalanga, Nelspruit
Mpumalanga, Nelspruit
Summary

Profitable franchised building materiel and hardware suppliers in niche developing location.

Franchised Building And Hardware Related Supplier Mpumalanga
SELLING PRICE AFS
R 6,400,000* ZAR
Stock: R0
Assets: R1,150,000
R 70,182 ZAR
Summary

Profitable franchised building materiel and hardware suppliers in niche developing location.

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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?
Since 2015

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?
No

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?
Yes

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?
Yes

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?
20 employees

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?
Yes.

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?
5 Years

What is the annual escalation %?
8%

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?
800 sqm

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?
Good

Do any require repairing?
No

How have they been valued ?
The asset value is at R 1 150 000

Which assets are on lease/HP and with whom?
The vehicles

What are their settlement amounts?
On file

Will Seller settle or Buyer to take over?
Buyer to take over

Are copies of agreements available?
Yes

Are they presently insured?
Yes

Opportunities?
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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FRANCHISE DETAILS

Aldes Lowveld

1 members
20 active mandates
Mpumalanga , Nelspruit
7 Jakkalsbessie Street, West Acers
Nelspruit
1206

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