Sectors / Category

Annual turnover

|
  • Mandate: 35010
  • Added: 21 Nov 2021
  • AFS
  • 179

Investment opportunity for a concrete flooring product manufacturer for Garden Route & Eastern Cape

Western Cape, Garden Route
179
Mandate 35010
Added 21 Nov 2021
R 350,000* ZAR
for 50% of business
Stock: R 0
Assets: R 1,304,405
R 51,609 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 on the Garden Route or Eastern Cape. This business will supply a network of retail agents throughout the Garden Route and Eastern Cape. 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 350,000* ZAR
for 50% of business
Stock: R0
Assets: R1,304,405
R 51,609 ZAR
Summary

This is a unique investment opportunity to acquire a 50% interest in a colour concrete flooring manufacturer and distributor on the Garden Route or Eastern Cape. This business will supply a network of retail agents throughout the Garden Route and Eastern Cape. 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%.

To gain access to more business info
please supply us with your details below

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 on the Garden Route (or in the Eastern Cape) to supply product to this network throughout the Garden Route and Eastern Cape (up to Port Alfred and including Gqeberha). This investment opportunity is for a 50% shareholding and is ideally suited for someone with a background in the construction industry. It should be noted that this is a start-up operation and the first year's financials reflect a financial forecast for the first 12 months (January to December).

How long has the business been established?
8 years (i.e. the head office business)

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?
No, only financial forecasts

What Balance Sheet and Income Statements are available?
No, 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?
5 years will be sought

What is the annual escalation %?
Market related

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 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).

What is their overall condition?
Will be new

How have they been valued ?
At cost price

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

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 the Garden Route in order to be close to that growing market.

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 R350 000 and includes: - factory and vehicle assets - office equipment - raw materials and packaging - prepaid expenses (rent, electricity, internet connection..) R350 000 of the price will be reinvested to start the business via a shareholders loan in favour of the current owners.

Other listings by Ian
R 4.00MZAR
Added : 23 Nov 2021 150
Yearly profit: R917,073
North West
R 8.50MZAR
Added : 16 Sep 2021 390
Yearly profit: R427,800
Gauteng
AGENCY DETAILS

Aldes Egoli

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

Our experienced cross industry brokers are
waiting to assist and guide you…

Businesses in Gauteng

Annual Turnover Amount between R 500 thousand and R 6 million

R 1.85MZAR
Added : 6 Dec 2021 0
Yearly profit: R826,143
Gauteng
R 1.70MZAR
Franchise
Added : 6 Dec 2021 0
Yearly profit: R630,285
Gauteng
R 420KZAR
Franchise
Added : 6 Dec 2021 0
Profit*: R79,779 *(7 months)
Gauteng
R 1.95MZAR
Franchise
Added : 29 Nov 2021 73
Yearly profit: R835,192
Gauteng
R 2.20MZAR
Added : 28 Nov 2021 98
Yearly profit: R565,911
Gauteng
R 759KZAR
Franchise
Added : 22 Nov 2021 183
Yearly profit: R91,545
Gauteng
R 2.50MZAR
Added : 17 Nov 2021 175
Yearly profit: R849,127
Gauteng
R 1.93MZAR
Added : 10 Nov 2021 169
Profit*: R592,126 *(8 months)
Gauteng