Sectors / Category

Annual turnover

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  • Mandate: 34955
  • Added: 19 Nov 2021
  • AFS
  • 112

Garden Maintenance & Tree Felling - priced to sell as emigrating

KwaZulu-Natal, Durban
112
Mandate 34955
Added 19 Nov 2021
R 590,000* ZAR
Stock: R 0
Assets: R 180,000
R 43,097 ZAR
Steve Patmore
Aldes Exclusive
KwaZulu-Natal
KwaZulu-Natal
Summary

Garden Service business to established customer base Durban North.

Garden Maintenance & Tree Felling - priced to sell as emigrating
SELLING PRICE AFS
R 590,000* ZAR
Stock: R0
Assets: R180,000
R 43,097 ZAR
Summary

Garden Service business to established customer base Durban North.

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Fully describe the business's activities?
The business offers weekly, fortnightly or monthly garden maintenance in and around the Durban North and Umhlanga areas. Once-off clean-ups and tree felling are also services offered. The business has just over 100 clients all on privately owned properties with one estate contributing 7 individual clients. The business operates two teams of 4 with one in each team fulfilling the role of a supervisor, The owner owner drops and collects the teams although one of the supervisors can also operate as a driver. On weekends and downtime the business also does ad hoc once off services.

How long has the business been established?
The business has ben established for over 13 years with two previous owners prior to the current owners.

How long has the owner had the business?
Since 2018.

How does the business operate on a daily basis?
The business has just over 100 clients all on privately owned properties with one estate contributing 7 individual clients. The business operates two teams of 4 with one in each team fulfilling the role of a supervisor, The owner owner drops and collects the teams although one of the supervisors can also operate as a driver. On weekends and downtime the business also does ad hoc once off services.

How are the clients attracted to the business?
Word of mouth and a Facebook recommendations.

What Advertising/Marketing is carried out?
Only Facebook.

Does the business have any contract work?
Contracts are either weekly, fortnightly or monthly with one months cancellation notice being required.

What competition exists?
There are other competitors, but the business has grown a loyal customer base with good workmanship and service. They also offer tree felling services which is very useful for some clients who need this service as they don't need to outsource this.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was closed during the months of March and April 2020.

Is the business VAT Registered?
Up until this point in time the business has fallen just below the VAT threshold and is was required to register for VAT.

Are there up-to-date Management Accounts available?
Monthly Management Accounts are available in the form of spreadsheets. The Seller will provide proof of all Income and Expenses by way of receipts and Bank Statements to qualified Buyers at a due diligence stage. For the purposes of this report the 12 months figures till end of September 2021 were used. The expense items Garden Expenses and General Expenses refer to Dumping costs and Equipment Petrol respectively. The Report shows static income which is pretty indicative of a garden business with regular (but not contracted clients), small variations will be seen at a due diligence stage. Absolutely every expense to operate this business is covered within the expense items providing an owner operator with a Discretionary Income of some R 517166 pa (before tax). The 2016 2.5 Diesel Izuzu repayments of some R4 000pm are included within the Vehicle Expenses, with R120 000 remaining thereon to approx. mid 2024.

What percentage of the business is cash/credit?
All business is on a cash basis either via EFT or cash payments. All payments are banked and can be proved.

How could the profitability of the business be improved?
With more men in the team and perhaps an extra vehicle (only needs to be a small runaround), then the teams could do more jobs per day. At the moment there are 8 men split into 4 employees per team. Potentially, the Seller believes that with one extra employee, you could split the teams into 3 each and increase turnover by about 30% as you would be able to carry out more services per day. Essentially a quick increase would only require one extra employee. The business has had to turn down a lot of work due to capacity constraints.

What is the total staff complement?
There are 8 staff members. six of which are general labour with an addional 2 supervisors i.e. one per team.

Give a breakdown of staff/ functions/ length of service?
The staff consists of two teams of four. Each team consists of three general labourers and a supervisor. 7 of the staff have been with the owner since he took over the business and had also worked for the previous owner.

Do any receive special perks or incentives?
The staff are each paid a R 1,000 bonus in December.

How involved is the Owner in running the business?
The Owner runs the business, being responsible for sourcing and quoting new clients, dropping and collecting teams and generally taking responsibility for the level of workmanship and ensuring all tools are maintained and operative.

What is the square meters of the business?
This is a home run business and the owner stores the tools in a 3 x 3 sq. metre garden shed on his premises.

What are the main assets of the business?
The business has a 2.5 Diesel Izuzu Bakkie, 1 x Trailer. 2 x Mowers, 3 x Brush Cutters, 3 Blowers, a Chainsaw, and all relevant hand tools.

What is their overall condition?
All equipment is well maintained and in working order.

How have they been valued ?
Assets have been valued at the Sellers estimation of 2nd. hand value.

Which assets are on lease/HP and with whom?
The Bakkie is on HP, at around R4 000pm and has until mid 2024 to run under the new owner, as it was included within the expenses of this Report before the Net Profit was calculated.

What are their settlement amounts?
The settlement amount is R 120,000 with estimated market value at about R 150,000.

Will Seller settle or Buyer to take over?
The buyer is to takeover the lease repayments of some R4 000 pm as they are included within the expenses of the business before the Discretionary Income of some R 517,166 pa was realised.

Are copies of agreements available?
A copy of the lease agreement will be made available to serious buyers at a due diligence stage.

Are they presently insured?
All items are insured.

Strengths?
The business has a strong client base that shows little turnover due to satisfaction with the work done.

Weaknesses?
There are no perceivable weaknesses.

Opportunities?
A new owner could target estates and complexes which would minimise travel an result in better efficiency. As stated an extra employee could enable the operation to split into three teams instead of two thereby being able to handle extra jobs. An owner/operator with Landscaping experience could add this as an extra service.

Threats?
The usual economic threats.

What is the reason for the sale?
The Seller is emigrating at the end of December & will pass the business over to a friend if a buyer hasn’t come forward by then – SO come forward quickly if you wish to obtain an excellent little business with growth potential at a Sale Price of R 590 000 on a Profit of some R 517,166 pa !

Why is this a good business?
A well established business with a well trained and efficient labour force. The owner has had the business for 4 years and has developed a regular client base that shows little turnover.

What is the price plus stock and the profit?
A fire-sale Sale Price of R590 000 on a turnover of R 1,114,910 pa which will rise as COVID impact diminishes and SUMMER is literally here, with the result that YOUR profit will rise above the quoted R 517,166 pa !

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AGENCY DETAILS

Aldes Exclusive

2 members
15 mandates
KwaZulu-Natal
11A Coghill Avenue, Kloof
4000

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