Sectors / Category

Annual turnover

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  • Mandate: 34494
  • Added: 23 Feb 2021
  • AFS
  • 268

Established Franchised Maintenance Business

Eastern Cape, Eastern Cape and other areas
268
Mandate 34494
Added 23 Feb 2021
R 2,200,000* ZAR
Stock: R 0
Assets: R 1,088,000
R 32,457 ZAR
Willem Smuts
(PRINCIPAL)
Aldes Algoa
Eastern Cape
Eastern Cape
Summary

The Business is established for a ten year period and a member of a 30 year old brand. Nationally well known for quality craftmanship at affordable prices and excellent guarantees. The working equipment is in excellent condition and specialise in a service for which a demand will always exist. Currently subject to poor working environment under the Covid lock-down protocol, but his will also pass and remains a sustainable business with a bright future. Netting R XXX per the 12 month period to 29 February 2020.

Established Franchised Maintenance Business
SELLING PRICE AFS
R 2,200,000* ZAR
Stock: R0
Assets: R1,088,000
R 32,457 ZAR
Summary

The Business is established for a ten year period and a member of a 30 year old brand. Nationally well known for quality craftmanship at affordable prices and excellent guarantees. The working equipment is in excellent condition and specialise in a service for which a demand will always exist. Currently subject to poor working environment under the Covid lock-down protocol, but his will also pass and remains a sustainable business with a bright future. Netting R XXX per the 12 month period to 29 February 2020.

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Fully describe the business's activities?
This Business is a proudly South African Family Brand established in 1990. and is currently the only company in South Africa, that Manufactures, Supplies, and Applies a full range of building maintenance products, which are Enviro-friendly countrywide. These Enviro-friendly Systems and Solutions are designed for: • The entire broad spectrum of Waterproofing • Lateral and Rising Damp • Interior and Exterior paints and coatings • Refurbishment of Roofs • Replacement of Roofs • Asbestos Solutions • Swimming pool refurbishment • Specialist Building Maintenance Solutions

How long has the business been established?
Since 2010 in Port Elizabeth but nationally for 30 years.

How long has the owner had the business?
for 11 years

How does the business operate on a daily basis?
Work commences at 7 am. all staff report to operational office and then asigned to various projects

How are the clients attracted to the business?
By Word of mouth referrals, marketing via radio and physical door to door visits to businesses, office blocks, shopping centres and houses.

What Advertising/Marketing is carried out?
Web Site advertising on the internet, franchise and radio advertising

Does the business have any contract work?
The Business has contracts with certain beverage companies

What competition exists?
Limited competition from other competitors

What are the seasonal trends?
Generally busier during summer months with rain season causing roof leaks and callouts.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The 100% lock down in April 2020 did effect the business, but was classified as Essential services and allowed to continue working under protocol conditions. Generally, the pandemic had a crippling effect like on all other industries.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The Business is fully compliant with the pandamic Protocol.

Is the business VAT Registered?
Yes, the business is VAT reistered.

What VAT documentation is on file?
All bi-monthly payment copies available.

Are there up-to-date Management Accounts available?
Yes, up to date Management accounts available.

What Balance Sheet and Income Statements are available?
Latest Annual Financial Statements up to February 2020 will be made available to qualified buyers.

What percentage of the business is cash/credit?
a Deposit payable on entering contract and balance payable on completion of work.

What is the age analysis of the debtors book?
Strict management over debtors age analysis, some clients have negotiated a 120 day settlement account.

How could the profitability of the business be improved?
More aggressive door-to-door advertising, marketing and quoting, especially big companies.

Is Seller finance available and for what amount?
No Seller finance available.

What is the total staff complement?
At present 14 staff members.

Give a breakdown of staff/ functions/ length of service?
4 Supervisors/drivers and 10 skilled workers that can paint, plumbing, etc.

Do any receive special perks or incentives?
Staff are remunerated in accordance to Sectoral Determination Act.

Are they on contract?
All staff members are issued with a letter of appointment.

Do any have management potential?
The supervisors have limited managerial skills

How involved is the Owner in running the business?
The owner is 100% involved in the business but does delegate some work to supervisors when required.

When does the current lease end?
The Current lease is on a month to month basis.

Is there an option of renewal & what period?
An option to renew for 5 years is available.

What is the annual escalation %?
To be negotiated

What are the trading hours?
7:00am to 16:00 Monday to Friday.

What is the square meters of the business?
Office 16M2 yard 100m2

Is a copy of the lease available?
Lease agreement to be negotiated with current owner.

Do you require a licence?
No Licence Required.

What lease deposit and/or other surety is required?
To be negotiated with current owner.

What are the main assets of the business?
Tools, Equipment, vehicles and trailers. a full list of assets is available.

Are any items not included in the sale?
All items on the list is included in the sale.

What is their overall condition?
Excellent working condition.

Do any require repairing?
No repairs at present, but constant servicing of equipment is performed.

How have they been valued ?
The Assets and Equipment have been valued at 50% of replacement value.

Which assets are on lease/HP and with whom?
Some vehicles are still on HP and a detailed list with amounts owing will be forwarded to qualified buyers.

What are their settlement amounts?
Will be determined at Effective Date of take over.

Will Seller settle or Buyer to take over?
buyer to take over HP on vehicles.

Are copies of agreements available?
Copies are available and will be forwarded to qualified buyers.

Are they presently insured?
all Assets and Equipment are comprehensively insured.

Strengths?
This business is a member of an established brand with 30 years of experience. The local branch is profitable and been trading in excess of 10 years. The business specialises in maintenance which will always be a requirement in our society and city. The material used has been specially designed for the specific purpose for which it is required and delivered with an acceptable guarantee.

Weaknesses?
Bad weather ( Rain and wind) will effect your immediate performance but also bring you work in the long run.

Opportunities?
Bad weather does bring you additional work and more aggressive marketing will be to the advantage of the business. Many coastal factories and warehouses are fitted with Asbestos sheeting and legislation to maintain these roofs should be policed properly. This will create a huge opportunity for businesses in this trade

Threats?
Maintenance will always be a required service especially along the coast with our adverse weather conditions. The Covid 19 pandemic has resulted in poor trading conditions , but as the national inoculation roles out, the conditions should improve.

What is the reason for the sale?
The owner wishes to retire.

Why is this a good business?
This is an established and profitable business which provides an essential service for which there will always be a demand.

What is the price plus stock and the profit?
The Asking price is R 2 200 000. The Assets and Equipment is worth far more than R 1 000 000 and are currently netting R 389 000 per annum under these poor Covid trading conditions.

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FRANCHISE DETAILS

Aldes Algoa

1 members
17 active mandates
Eastern Cape
16 Frykenhuis Street, Summerstrand
6001

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