Fully describe the business's activities?
The business specializes in the manufacturing and erecting of pivot irrigation systems (Talbert and Zimmatic) as well as repairs and maintenance thereof.
How long has the business been established?
The business has been established for 22 years
How long has the owner had the business?
The current owner has owned the business for more than 10 years.
How are the clients attracted to the business?
Clients are attracted to the business mainly by long-lasting relationships with their clients and by "word-of-mouth"
What Advertising/Marketing is carried out?
The only advertising carried out is on the calendar of a local Radio station.
Does the business have any contract work?
No contract work
What competition exists?
Their competition in the area is a local farmer and two other companies in nearby towns supplying similar services.
What are the seasonal trends?
Summer months are extremely busy. Winter months not so busy due to winter rainy season.
Is the business VAT Registered?
Yes, the business is VAT registered
What VAT documentation is on file?
VAT documentation is available on request during due diligence.
Are there up-to-date Management Accounts available?
Yes, management accounts are available
What Balance Sheet and Income Statements are available?
28 February 2022
What percentage of the business is cash/credit?
Almost 100% of the business is on credit
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The profitability could be improved by adding products such as micro irrigation and pumps
Is Seller finance available and for what amount?
What is the total staff complement?
Total staff complement is 8
Give a breakdown of staff/ functions/ length of service?
Receptionist, 2 x workshop , 4 x irrigation building\erecting and 1 casual
Do any receive special perks or incentives?
No special perks or incentives for staff
Are they on contract?
Yes, they are all permanent employees
How involved is the Owner in running the business?
The owner is full-time involved in the daily running of the business
When does the current lease end?
The owners of the business are also the owners of the building and they are prepared to enter into a long-term lease agreement. The building is also for sale @ R 3,5m.
What are the trading hours?
Trading hours are from 7H30 till 17H10 Closed on the last Friday of every month
What is the square meters of the business?
The property is 1 929 square meters and consists out of the business offices and workshop totaling 497 sqm, one bachelor flat and 2 x flats.
What are the main assets of the business?
The Main assets of the business are the vehicles, machinery and workshop equipment
What is their overall condition?
How have they been valued ?
Are they presently insured?
Yes, all the assets are insured
The business is well established in the farming community for the past 22 years
The main opportunities are to extend the business radius to include other nearby farming communities and towns and to increase the product range by including pumps and micro irrigation systems
The normal threats associated with this kind of agricultural business.
What is the reason for the sale?
The owner wishes to retire.
What is the price plus stock and the profit?
The price of the business is R 2,295m (including stock of R 1m) with a net profit of around R500 000 per annum. The property is also available at an asking price of R 3,5m.
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