How does the business operate on a daily basis?
Clients contact the admin department who will book appointments for inspections and/or repairs

How are the clients attracted to the business?
Word of mouth due to very good name in the industry as well as good relationships with estate agents

What Advertising/Marketing is carried out?
Website, google maps and estate agent showhouse maps

Does the business have any contract work?
No

What competition exists?
Other contractors in the area, however 95% of our quotations are accepted

What are the seasonal trends?
Consistently busy throughout the year. Annual shutdown in Dec/Jan for builders holidays

Is the business VAT Registered?
Not registered for VAT

Are there up-to-date Management Accounts available?
Yes - up to February 2022

What Balance Sheet and Income Statements are available?
Last 5 years are available

What percentage of the business is cash/credit?
50% cash / 50% through transferring attorneys

What is the age analysis of the debtors book?
90 days if done through transferring attorneys, but dependent on transfer dates

How could the profitability of the business be improved?
Adding additional working hours through December and January instead of total shutdown as well as weekend work at afterhours rates

Is Seller finance available and for what amount?
No

What is the total staff complement?
6 including the owner

Give a breakdown of staff/ functions/ length of service?
Admin Assistants – 1 x 7 years ; 1 x 3 years
Electrical Assistants – 1 x 15 years; 1 x 8 years; 1 x 6 years

Do any receive special perks or incentives?
One of the admin assistants receives medical aid as part of her salary. One of the electrical assistants receives a pension contribution as part of his salary and one receives a special reduced rental cost which is deducted from his salary

Are they on contract?
All permanently employed

Do any have management potential?
Yes, one of the admin assistants acts as admin manager

How involved is the Owner in running the business?
Hands on, involved with all beetle & electrical inspections

When does the current lease end?
Negotiable as premises are owned by the owner

Is there an option of renewal & what period?
Negotiable

What is the annual escalation %?
Negotiable

What are the trading hours?
08h00 to 16h00 Monday to Friday

What is the square meters of the business?
+/-18m2 with 5 parking bays

Do you require a licence?
Annual registration required for single phase tester licence and woodborer inspectors’ licence

What lease deposit and/or other surety is required?
2 Months rent

What are the main assets of the business?
A full asset list is available

Are any items not included in the sale?
No

What is their overall condition?
Good condition – all are in good working order

Do any require repairing?
VW Panel Van needs spray painting and new signage

How have they been valued ?
Fair market value

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

Are they presently insured?
Vehicles are insured

Strengths?
Small, well maintained business offering a one stop solution for all compliance certificates and repairs. Plumbing & Gas certificates are done via our sub-contractors

Weaknesses?
Non perceived

Opportunities?
Increase working hours
Offer an after hour service
Keep more functions in-house rather than sub-contract.

Threats?
Potential other operators

What is the reason for the sale?
An investment opportunity has arisen

Why is this a good business?
Property market in W/Cape is booming due to semigration and the business has a good relationship with the estate agents in the area.
Load shedding and solar developments have resulted in many competitors ecxiting the industry so the need for this service is high

What is the price plus stock and the profit?
Selling price : R 1 600 000
Average adjusted monthly net profit : R 52 630