Fully describe the business's activities?
The business sells lawnmowers, brush cutters, chainsaws and a wide range of international brand equipment .Services and repairs are done in a fully equipped workshop
How long has the business been established?
How long has the owner had the business?
The Owner started the business in 2008
How does the business operate on a daily basis?
The owner open and close the shop daily. 60% of the clients is regular clients and 40% is walk-in clients. A fully equip workshop does repair and service of lawnmowers, ect
How are the clients attracted to the business?
Advertising in the local newsletter. The brand supplier does online ads. Passing trade and word of mouth
Does the business have any contract work?
No, but can be a potential opportunity for future development and growth to do tenders and contracts . .
What competition exists?
The dealers in the industry and dealers supplying the same brand of products
What are the seasonal trends?
The summer months are very busy
How did the Covid-19 pandemic impact the business turnover / daily operations?
In April 2020 the shop was close.
Are there up-to-date Management Accounts available?
On Excel spreadsheet available for the year till Aril 2021.
What percentage of the business is cash/credit?
The cash received is about 10% to 12% of the total sales.
What is the age analysis of the debtors book?
The Debtors ageing is on 30 days, that constitute around 9,2% .of the monthly turnover and is very strictly controlled.
How could the profitability of the business be improved?
A rep to visit clients on a more regular bases will increase sales. More mechanics and more marketing needed.
Is Seller finance available and for what amount?
30% of the total selling price(excluding stock) can be financed.
What is the total staff complement?
6 staff currently
Give a breakdown of staff/ functions/ length of service?
Sales person -2 Driver -1 Mechanic -1 (need more) Administrator -1 General Worker-1
Do any receive special perks or incentives?
Are they on contract?
How involved is the Owner in running the business?
The Owner manage the brand relationship, approve the orders, does creditor payments and update the pricelist. He also provides technical advice and assistance to the workshop too. His wife helps with sales at the front desk, the till, workshop admin and invoicing
When does the current lease end?
The property is owned by the Seller and the lease for the lawnmower business will be R29 000 pm A formal lease agreement will be drawn up for the Buyer.
What is the annual escalation %?
8 % pa
What are the trading hours?
Mon to Fri 08h00 till 17h00 Sat 08h00 till 13h00
What is the square meters of the business?
About 230 sq m
What are the main assets of the business?
The main assets of the business are the Stock on hand, the tools/ special tools/ equipment furniture/signage and good client relations.
What is their overall condition?
Good and well maintained
Do any require repairing?
How have they been valued ?
Owners replacement value
Are they presently insured?
The business has long established , high value customer base. Strong Brands in product portfolio. Wide range of stock on hand for immediate delivery to customers.
More difficult to source skilled mechanics/technicians. Limited Showroom size
Potential to expand product range. Marketing can be improved Marketing can be done by a rep at golf courses, landscapers, the council and contractors
What is the reason for the sale?
The Owners want to scale down their business activities
Why is this a good business?
Good established business in the area with a solid customer base and a promising development and growth opportunities for the future , from a prime location.
What is the price plus stock and the profit?
The price is R1 500 000 with stock on hand of R2 000 000. Total R3 500 000. The profit is a average of R73 737 p m
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