Fully describe the business's activities?
Franchise vehicle service centre (Express).
How long has the business been established?
The original owner started a similar business in 2012. It was an eCar Service centre that was converted into an Express Bosch Service Centre late in 2019.
How long has the owner had the business?
Since 2012 converted to Bosch in 2019.
How does the business operate on a daily basis?
Vehicles are booked for services beforehand. On arrival certain checks are carried out and additional work are qouted on.
How are the clients attracted to the business?
Good service and reasonable pricing.
What Advertising/Marketing is carried out?
The franchisor does national marketing. It is a very strong and reliable brand. The owner also distributes pamphlets at robots etc and word of mouth.
Does the business have any contract work?
No actual contracts but the business do work for "We Buy Cars", "Car Warehouse" and other similar companies. Work is mainly done on a quotation basis and paid for COD. They also do insurance work through their Head Office.
What competition exists?
There are a number of service centres in the area, but being of this particular brand is a big plus and definitely helps to attract new business.
What are the seasonal trends?
The business normally peaks just before school holidays. Easter and Christmas periods gets very busy.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was badly impacted by the first lock-down and had some very slow months. Even after they re-opened business took a while to pick up as the man in the street simply did not have money, especially not for major repairs.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The business adheres to all Covid-19 requirements for staff and the public entering their premises.
Is the business VAT Registered?
The Business is a registered VAT Vendor.
What VAT documentation is on file?
We do not have VAT returns on file but it will be made available on request for due diligence purposes.
Are there up-to-date Management Accounts available?
We have management acccounts up to end September 2021
What Balance Sheet and Income Statements are available?
Feb. 2020 (eCar) Franchise & 2021.
What percentage of the business is cash/credit?
98% Cash. Very few credit accounts.
What is the age analysis of the debtors book?
Total book R20 237,72 of which 29,34% is within 30 days and 70,66% 120 days. The 120 days account is for Disscovery Insurance who is a strategic partner of the Bosch group. Bosch receives all payments and settles with franchisees.
How could the profitability of the business be improved?
-Open on Saturdays for services; -Do aircon regasing and repairs; -Canvas local businesses and offer service packages.
Is Seller finance available and for what amount?
The seller will not consider vendor finance and wants to be paid in full.
What is the total staff complement?
7 excluding owner
Give a breakdown of staff/ functions/ length of service?
The manager (son of the seller) is with the business since 2012. He manages workshops and staff and also assists with customer liaison. He is a qualified technician. The service receptionist is with the business for 15 months. She makes out job cards, keep customers updated with work progress and advise of additional work to be done. Quotes and Invoicing is part of her responsibilities. 3 x Repair shop assistants - 5 months, 6 months and 8 years respectively with the business. They are responsible for servicing, repairs and maintenance on vehicles. General Labourer - 6 years - Cleaning of premises and washing of cars. They have just appointed another General Labourer who will be responsible to assist with washing cars and handing out flyers.
Do any receive special perks or incentives?
The manager receives a fuel allowance and some other perks. None of the other staff receives perks.
Are they on contract?
All staff signed employment contracts.
Do any have management potential?
None other than the current manager who unfortunately will be emigrating early in 2022.
How involved is the Owner in running the business?
Only involved in administrative and financial matters. No involvement in workshop.
Any special arrangements for the staff related to the Covid-19 pandemic?
Adhere to government laid down protocols.
When does the current lease end?
Is there an option of renewal & what period?
The landlord is open to renewal options from 1 to 5 years.
What is the annual escalation %?
What are the trading hours?
Weekdays only 8am to 5:30 pm.
What is the square meters of the business?
Is a copy of the lease available?
Yes we have a copy of the lease on file.
Do you require a licence?
No specific licence is required, but the buyer will have to be approved by the Franchisor. The business is currently registered with RMI, AA and MIO.
What lease deposit and/or other surety is required?
2 months deposit and rental upfront.
What are the main assets of the business?
Workshop equipment and one vehicle.
Are any items not included in the sale?
No all items as per the asset list forms part of the sale.
What is their overall condition?
All in working order.
Do any require repairing?
How have they been valued ?
Current used market value.
Which assets are on lease/HP and with whom?
None but there is a monthly rental on the telephone system which is in use in the business. The monthly rental of Â±R930 is included in telephone expenses.
What are their settlement amounts?
To be advised during due diligence.
Will Seller settle or Buyer to take over?
The telephone system is nearly at the end of the rental but if the sale goes through before it is settled then the buyer will have to take it over.
Are copies of agreements available?
Will be made available to the buyer during due diligence process.
Are they presently insured?
All assets are insured against lost amd normal business risks.
Strong Brand and business in existence for a long time.
The current manager is leaving the business due to emigration.
Extended trading hours and additional services.
None identified other than the general economy.
What is the reason for the sale?
The manager of the business, who is the Seller's son, is emigrating early in 2022 and because the seller is nearing retirement he feels that it is better to sell the business now than to attempt to replace his son.
Why is this a good business?
Respected brand. Well established and profitable.
What is the price plus stock and the profit?
The asking price is R1 300 000 plus stock with 12 months rolling net profit of R744 489 for the period (Dec. 2020 to Nov. 2021) before the owner's drawings, depreciation and tax. The current 9 months management accounts show an average net of R56 519 p.m. The Manager's latest remuneration package is Â±R17 500 pm plus some other perks (R350 p.w. fuel), included in expenses. Should the buyer not require a manager it will increase the free cash flow.
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