Fully describe the business's activities?
Manufacturer, retail and installation of various metal products,components namely: - Stainless steel Balustrading - Stainless steel Custom fabrication - Mild steel and wrought Iron Balustrading - Glass Balustrading - Custom Steel Structures and Manufacturing - Construction Steel Work - Pergola's - Louvres - Spiral Staircase - Fencing - All kinds - Shop Fitting and Custom work
How long has the business been established?
How long has the owner had the business?
What steps are in place to solve 'load shedding' problems?
What is the average KW usage?
How does the business operate on a daily basis?
The business receives orders on a daily basis. They have a number of bigger clients who place orders on bi-monthly basis. They have recently secured a corporate contract to do the aluminium balustrading for 30 plus sites around the country.
How are the clients attracted to the business?
- Website - Referrals - Word of mouth - They have been in the industry for a number of years. - Email lists - Cold calling
What Advertising/Marketing is carried out?
- FB marketing - Signage - Website
Does the business have any contract work?
Their clients have appointed them as preferred supplier.
What competition exists?
Various installers around the area.
What are the seasonal trends?
Very busy months: April - June and September - December.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Closed for 3 months and all staff went on short time till December.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Is the business VAT Registered?
What VAT documentation is on file?
Records will be made available to qualified buyer.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
2019 and 2020
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
Increased sales through securing larger job lots. Aggressive marketing strategy.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
A list of staff functions will be made available to a qualified buyer.
Do any receive special perks or incentives?
yes, welders and team leaders receive incentives for installations.
Are they on contract?
Yes, staff contracts in place.
Do any have management potential?
Business is currently manager run.
How involved is the Owner in running the business?
Daily involvement telephonically and visits once a month for a week at a time. Owner resides in Cape Town.
When does the current lease end?
Lease is open ended, no end date.
What is the annual escalation %?
What are the trading hours?
7am - 5pm
What is the square meters of the business?
What lease deposit and/or other surety is required?
1 month deposit
What are the main assets of the business?
Asset list will be made available to qualified buyer.
Are any items not included in the sale?
1 x Toyota Hilux bakkie
What is their overall condition?
All equipment is serviced regularly and in good working condition.
Do any require repairing?
How have they been valued ?
Market related value.
Which assets are on lease/HP and with whom?
All vehicles with outstanding balances will be settled on Effective date.
What are their settlement amounts?
Approximately R168 000-00.
Will Seller settle or Buyer to take over?
Seller to settle.
Are they presently insured?
All assets are comprehensively insured.
- Competent and hardworking staff. - Reliable suppliers. - Own factory, manufacturing most of the items in-house.
- Fluctuations in supply within the steel industry. - Lack of owner supervision (owner runs CT branch) - Lack of quality control checks
- Servicing larger corporate companies. - Appointing a sales force.
- Price fluctuations - Rand/Dollar exchange
What is the reason for the sale?
Owners are pursuing other business interests.
Why is this a good business?
Constant work flow, opportunities to grow exponentially. The company has secured a large contract to supply balustrading to a national corporate, this will equate to a large turnover and profit boost over the next 4 - 5 months. This contract must be taken into consideration when sale is drawn up as this is secured income.
What is the price plus stock and the profit?
R1760 000-00 excluding stock.
Annual Turnover Amount between R 500 thousand and R 6 million