Sectors / Category

Annual turnover

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  • Mandate: 35054
  • Added: 04 Dec 2021
  • AFS
  • 399

Scrapyard with Property and Loyal Customer Base

North West, North West
399
Mandate 35054
Added 04 Dec 2021
R 8,560,000* ZAR
Stock: R 0
Assets: R 13,807,123
R 151,837 ZAR
Frans Joubert
(PRINCIPAL)
Aldes Potchefstroom
North West, Potchefstroom
North West, Potchefstroom
Summary

Long established Scrapyard dealing in Ferrous and Non-Ferrous Metals, established customer base and transaction includes property and assets valued at R5,9m

Scrapyard with Property and Loyal Customer Base
SELLING PRICE AFS
R 8,560,000* ZAR
Stock: R0
Assets: R13,807,123
R 151,837 ZAR
Summary

Long established Scrapyard dealing in Ferrous and Non-Ferrous Metals, established customer base and transaction includes property and assets valued at R5,9m

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please supply us with your details below

Fully describe the business's activities?
Trading in Scrap Metals, Non Ferrous and Ferrous, other products includes second hand sales, engines, cylinders.

How long has the business been established?
The business was established 28 years ago

How long has the owner had the business?
28 years

How are the clients attracted to the business?
Some advertising in local paper, established customer base.

Does the business have any contract work?
No, yet the owner indicated that the business has long term loyalty factor over many years.

What competition exists?
There are other scrap dealers in area

What are the seasonal trends?
Closed in December

How did the Covid-19 pandemic impact the business turnover / daily operations?
Decreased by 30%

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All VAT documents on file

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
All Financial Documents Available

What is the age analysis of the debtors book?
None

How could the profitability of the business be improved?
Cost control on various lines would yield cost increases

Is Seller finance available and for what amount?
No

What is the total staff complement?
25 Staff

Do any receive special perks or incentives?
UIF and PPE Only

Are they on contract?
All contracts in place

Do any have management potential?
Yes staff is very competent

How involved is the Owner in running the business?
Overlooking of day-to-day operations. Problem solving. Managing Staff. Tenders and Auctions.

When does the current lease end?
The property is 9,000 Squares and forms part of the transaction. If deal is structured without the property then R30,000 rent would be payable on 5 year lease and terms such as escalation etc could be captured as part of this lease agreement. Preference would be to sell property with the business.

Do you require a licence?
All necessary licences are in place

What are the main assets of the business?
The property of 9,000 squares with store and admin offices. UD Skip Loader. Tata Skip Loaders. Crane Truck. Grab Truck. Pickup Bakkie. 14 Ton Excavator. Range of Cube Bins. Scales. Nibbler. Cable Strippers. Crocodile Shears. Cutting torches and Tools. Forklift. Stock in Yard is excluded and will be part of overall discussion with potential buyer

Are any items not included in the sale?
On the current balance sheet there are a number of properties, these are not included in the transaction, only the premises associated with the business is part of the transaction.

How have they been valued ?
Lower values of replacement values research for 2nd hand similar goods

Strengths?
Long history, loyal client base, constant cashflow. Revenues and profits treated owners well allowing to build wealth without any debt.

Weaknesses?
Owner retirement nearing removed the excitement required to drive business

Opportunities?
Selling B Grade Materials. Expanding Rubble Removals. Purchase Shredder to Maximise Profits

Threats?
Covid Lockdowns

What is the reason for the sale?
Owner Retiring - Currently selling all business interest as a result

Why is this a good business?
This business provided consistent income for its owners, currently doing 205 tons of Non-Ferrous and 3,100 tons of Ferrous, as well as range of other materials, each would could be grown and built upon for greater revenues.

What is the price plus stock and the profit?
The price is at R8,560,000 and includes the property at R3,000,000. The owner value in last financial year is at R1,8m. The assets value in total with the property is at R5,9m

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AGENCY DETAILS

Aldes Potchefstroom

1 members
43 mandates
North West , Potchefstroom
Mia Meent Unit 3 6 Fick Street Potchefstroom
Potchefstroom

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