Fully describe the business's activities?
The business manufactures and distributes a wide range range of Outdoor furniture. They supply products; assembled / flat pack for self assembly.
How long has the business been established?
Business was established in 1996.
How long has the owner had the business?
Business has been family run for 25 years.
What steps are in place to solve 'load shedding' problems?
Generators are in place.
How does the business operate on a daily basis?
Managers open and close the factory daily. The production is scheduled as needed - maintenance is performed on a regular basis. Orders are prepared timeously for deliveries.
How are the clients attracted to the business?
Many clients are attracted through retail outlets. Longstanding wholesale clients / exports mainly to the SADEC countries.
What Advertising/Marketing is carried out?
Trade shows were attended in the past. They have a website.
Does the business have any contract work?
No contract work - orders are placed and furniture is manufactured.
What competition exists?
There are other furniture manufacturers in the market - steel and concrete.
What are the seasonal trends?
Production is lower during the winter.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business had no activity during April & May 2020. The total sales for the year till end of February 2021 was almost the same as for the previous year end = February 2020.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Covid-19 protocols was implemented and adhere to.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT returns are on file.
Are there up-to-date Management Accounts available?
Yes, Management accounts for five months up until July 2021 are available.
What Balance Sheet and Income Statements are available?
Audited Financial Statements till 28 February 2021.
What percentage of the business is cash/credit?
All payments are EFT.
What is the age analysis of the debtors book?
30% of the debtors are on a 30 - 60 day credit. Balance is payable in 7 days. Very good debtors book in place.
How could the profitability of the business be improved?
Export market. Manufacturing of a variety of furniture / products.
Is Seller finance available and for what amount?
What is the total staff complement?
There are 50 employees.
Give a breakdown of staff/ functions/ length of service?
Three Managers. The employees are skilled in these fields: receiving, molders, grinders, welders, painters, powder coaters, stock controllers, dispatch, drivers & sales. The majority of the employees are loyal and have been working in the factory for several years.
Do any receive special perks or incentives?
The sales person earns commission.
Are they on contract?
Do any have management potential?
Yes there are - production side with management potential.
How involved is the Owner in running the business?
The Owner manages the finances and the daily planning. He attends to the factory three / four days a week.
When does the current lease end?
The rent of the premises is renewed on an annual basis. They have rented the premises for the past 25 years.
Is there an option of renewal & what period?
What is the annual escalation %?
Annual Escalation = 6%.
What are the trading hours?
Monday to Friday: 07:15 - 16:15..
What is the square meters of the business?
The building is 2000 square meters on a 5000 square meter stand.
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
All manufacturing equipment including the powder coating plant & delivery vehicles. Three new delivery vehicles are bought very recently.
Are any items not included in the sale?
The bakkie of the Owner and two computers will not form part of the sale.
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owners second hand valuation.
Which assets are on lease/HP and with whom?
Two vehicles with Nedbank are on Lease and the installments will be taken over by die Buyer..
Will Seller settle or Buyer to take over?
The Buyer to take over the lease of the delivery vehicles that is part of the company.
Are copies of agreements available?
Are they presently insured?
Yes, fully insured.
The business is well established. The production processes and lay out is neatly in place. Solid client base. Flexible products are manufactured. People skills are tops.
Online business can be extended.
What is the reason for the sale?
The Owner is emigrating.
Why is this a good business?
Well established business with consistent income. Top quality - in demand products delivered to loyal client base.
What is the price plus stock and the profit?
The Price for the business is R6 500 000 and the stock is R1 500 000
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