Sectors / Category

Annual turnover

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  • Mandate: 34984
  • Added: 29 Oct 2021
  • AFS
  • 262

Investment opportunity in a Gauteng domestic and commercial concrete flooring product manufacturer

Gauteng, Johannesburg
262
Mandate 34984
Added 29 Oct 2021
R 750,000* ZAR
Stock: R 0
Assets: R 1,138,910
R 57,401 ZAR
Ian Tennant
(PRINCIPAL)
Aldes Egoli
North West
North West
Summary

This is a unique investment opportunity to acquire a 50% interest in a colour concrete flooring manufacturer and distributor. This business will supply a network of retail agents throughout the country and neighbouring territories, with the exception of the Western Cape and Garden Route. The ideal investor will, ideally, have experience of the building industry. PLEASE NOTE: THE FINANCIAL RESULTS INDICATED ARE FOR 100% OF THE BUSINESS, THE INVESTOR'S SHARE WOULD BE 50%.

SELLING PRICE AFS
R 750,000* ZAR
Stock: R0
Assets: R1,138,910
R 57,401 ZAR
Summary

This is a unique investment opportunity to acquire a 50% interest in a colour concrete flooring manufacturer and distributor. This business will supply a network of retail agents throughout the country and neighbouring territories, with the exception of the Western Cape and Garden Route. The ideal investor will, ideally, have experience of the building industry. PLEASE NOTE: THE FINANCIAL RESULTS INDICATED ARE FOR 100% OF THE BUSINESS, THE INVESTOR'S SHARE WOULD BE 50%.

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Fully describe the business's activities?
A national manufacturer of cement floor and related products is wanting to expand its network of agents and installers and is seeking to set up a factory in Johannesburg to supply product to this network throughout South Africa and neighbouring territories, with the exception of the Western Cape and the Garden Route. This investment opportunity is for a 50% shareholding and is ideally suited for someone with a background in the construction industry.

How long has the business been established?
8 years

How long has the owner had the business?
8 years

How does the business operate on a daily basis?
7 hours

How are the clients attracted to the business?
Colour cement floors have become very popular over the years, both in the domestic market as well as commercial and industrial markets. This particular brand has some unique attributes which sets it apart from the competition. The network of agents will effectively be the sales team for this business.

What Advertising/Marketing is carried out?
Digital marketing using Google Ads Marketing and sales activities through a network of agents and suppliers of the product Word of mouth

What competition exists?
There are established suppliers in the market, namely Cemcrete, Flowcrete and Technical Finishes.

What are the seasonal trends?
None, but the construction holiday period in December and January does affect sales.

Is the business VAT Registered?
New company, will be registered.

Are there up-to-date Management Accounts available?
This is a start-up. The financials that are reflected are forecasts

What Balance Sheet and Income Statements are available?
Start-up operation, only financial forecasts

What percentage of the business is cash/credit?
It will be predominantly cash (EFT)

Are financial projections available?
Financial projections are what are reflected in this report for the first 12 months of operations.

What is the total staff complement?
A staff complement of 5 is required

Give a breakdown of staff/ functions/ length of service?
Owner / Manager Receptionist Material Mixer and Assistant Labourer Representative

How involved is the Owner in running the business?
Full time

When does the current lease end?
New lease to be entered into

Is there an option of renewal & what period?
To be negotiated but 5 years is the targeted period

What is the annual escalation %?
To be negotiated

What are the trading hours?
9.00 to 16.00, 5 days a week

What is the square meters of the business?
Mini factory size

What lease deposit and/or other surety is required?
To be negotiated

What size premises will be required?
Office, storage of material and a manufacturing area of approximately 100 sqm will be required. Delivery and despatch areas and parking also needs to be catered for.

Is any specific location required?
The location should allow for easy access to major motorways to other parts of Gauteng, Kya Sands is the likely location.

What are the main assets of the business?
The purchaser will be provided with a unique product (the intellectual property) that will be a product differentiator in the cement flooring market. The main assets for the factory will be provided and will comprise equipment to mix various raw materials to produce and package the final product. The value of these assets is approximtely R140 000 and is included in the sales price (reinvested by the existing owners). A laptop with fully loaded software and a printer worth R33 500 will also be provided and included in the sales price.

What is their overall condition?
Will all be new

Do any require repairing?
No

How have they been valued ?
Current sales prices

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Assets will be insured

Strengths?
The business has an excellent and very competitive product range The purchaser will be provided with a turnkey solution to enter the market immediately

Weaknesses?
No weaknesses identified

Opportunities?
The cement floor is a large and growing market

Threats?
The competition is well established and well represented in the market. A strong and effective sales presence will be required to get market share, the excellent product range will compete strongly with the competitor products.

What is the reason for the sale?
The business is not being sold, the "sale" relates to the expansion of the business's production facilities to Gauteng in order to be closer the biggest markets and take the business to a higher level.

Why is this a good business?
The business falls within the construction and materials sector and addresses both the domestic and commercial property sectors. Its specific products are very popular and will compete strongly against the existing competition.

What is the price plus stock and the profit?
The price is R750 000 and includes: - factory assets - office equipment - raw materials and packaging - prepaid expenses (rent, electricity, internet connection..) R550 000 of the price will be reinvested to start the business via a shareholders loan in favour of the current owners.

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AGENCY DETAILS

Aldes Egoli

1 members
13 mandates
North West
42 Bass Cove The Coves Estate Hartbeespoort 0216

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