Sectors / Category

Annual turnover

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  • Mandate: 34520
  • Added: 12 Apr 2021
  • AFS
  • 174

Established Business Specialising in the Treatment of Asbestos Roofs

Eastern Cape, Port Elizabeth
174
Mandate 34520
Added 12 Apr 2021
R 4,605,000* ZAR
Stock: R 5,000
Assets: R 0
R 162,417 ZAR
Willem Smuts
(PRINCIPAL)
Aldes Algoa
Eastern Cape
Eastern Cape
Summary

This business was established in 2002, highly profitable and with a lucrative future ahead. Viable contracts with existing clients and negotiations at an advanced stage for further work prospects. All labour is outsourced, all machinery is hired and has netted a Profit in excess of R 1 900 000 in the year Financial Year ending February 2021.

SELLING PRICE AFS
R 4,605,000* ZAR
Stock: R5,000
Assets: R0
R 162,417 ZAR
Summary

This business was established in 2002, highly profitable and with a lucrative future ahead. Viable contracts with existing clients and negotiations at an advanced stage for further work prospects. All labour is outsourced, all machinery is hired and has netted a Profit in excess of R 1 900 000 in the year Financial Year ending February 2021.

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Fully describe the business's activities?
This business was established in 2002 to provide a comprehensive service to our clients to ensure their full compliance with the Asbestos Regulations - ACT No. 85 . This service includes microscopic and chemical analysis of material present on site and the treatment, where necessary, of such material to ensure that no hazardous asbestos fibres become airborne. Studies conducted show that there is no identified “safe level of exposure to asbestos fibres”.

How long has the business been established?
Since 2002

How long has the owner had the business?
The owner started the business

How does the business operate on a daily basis?
The owner specialises in negotiating with clients and attends work sites on a regular basis. All labour is outsourced and all equipment is rented. Outsourced labour providers are paid per m2 at negotiated intervals

How are the clients attracted to the business?
By means of brochure advertising, word of mouth and door to door advertising.

What Advertising/Marketing is carried out?
Website, brochures, word of mouth and referral advertising.

Does the business have any contract work?
Many contracts in place and will be provided to serious buyers during due diligence phase.

What competition exists?
limited competition from competitors

What are the seasonal trends?
There are no seasonal trends and the workload depends on successful negotiations of contracts.

Is the business VAT Registered?
TO BE ADVISED

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

What Balance Sheet and Income Statements are available?
Its a sole proprietorship, with annual tax returns filled.

What percentage of the business is cash/credit?
All contracts are done on a deposit basis. as the work progresses, additional payments are received as negotiated.

How could the profitability of the business be improved?
More aggressive advertising should be done. The Asbestos Regulation Act no 85 should be policed to enforce the adherence to the act. All coastal cities and towns have huge asbestos roofing which makes the future of this business sustainable.

Is Seller finance available and for what amount?
Not available.

What is the total staff complement?
the business does not employ its own staff. All staff related issues are subcontracted.

Are they on contract?
A contract is entered with the sub-contractor and paid an agreed price per piecemeal. (e.g. per m2)

How involved is the Owner in running the business?
The owner does the marketing, site inspections and liase with clients.

When does the current lease end?
The owner works from home. Minimal equipment is owned by the owner ( specialized pumps and piping, low-pressure spray equipment, buckets, spades, paint rollers, etc) A container is rented and erected at the site and all rented equipment is stored on site.

What are the trading hours?
The working hours are 8am to 5 pm Monday to Friday.

What are the main assets of the business?
The main assets of the business is the closely guarded chemical formulation and sourcing of the products used in sealing asbestos sheeting in compliance with the asbestos regulations. The above formulation is the intellectual property of the owner and will pass to the new owner.

Strengths?
This is a highly lucrative business and one only has to drive through the industrial areas to see the huge potential of work waiting to be done. all asbestos roofing has to either be replaced at a huge cost or treated as per prescribed by the Asbestos Act. no 85 for a fraction of the price, All labour and equipment rental is outsourced which relieves the managent from this burden.

Weaknesses?
limited competition from competitors who use an inferior product. The Asbestos Act no 85 is not being policed and should this be done a load of work will proceed.

Opportunities?
Once again, you only need to drive through the industrial area to appreciate the magnitude of work that has to be done. This firm is established since 2002 and this is a great opportunity for a new owner to take this business to the next level.

Threats?
The only possible threats is new competition to enter the market. it will take them years to develop the the same level of expertise as delivered by this business.

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

Why is this a good business?
This business is established and very profitable. Easy to manage as all staff and equipment is outsourced.

What is the price plus stock and the profit?
The asking price is R4 600 000 and the stock carried is minimal ( maybe R 5 000) The owner made a profit of R 1 980 000 in the 12 month period to 28 February 2020.

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FRANCHISE DETAILS

Aldes Algoa

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

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