"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The company specializes in the import, sales and supply of selected industrial products associated within the energy sector to both wholesale and retail markets. Because they are a direct importer from carefully selected overseas suppliers, they can offer their clients quality products at competitive prices. They pride themselves on years of experience and industry knowledge in the supply of these products to the construction, plumbing, and home-building industries.etc." They supply their products all over SA and across borders.
How long has the business been established?
11 Years
How long has the owner had the business?
11 Years - since inception
How does the business operate on a daily basis?
Orders are taken by sales staff and these are despatched to clients from a large warehouse where their very substantial stock is housed. There is a shop and trade counter attached to the warehouse from where the public can purchase goods.
How are the clients attracted to the business?
Word of mouth
Website
Social Media
Smile Radio
What Advertising/Marketing is carried out?
All platforms of social media
Website
Radio
Lots of referrals
Does the business have any contract work?
No
What competition exists?
Other importers, however their range is far superior to competitors and they are the "goto" shop.
What are the seasonal trends?
All year round steady business
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Up-to-date VAT documentation is available
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
2024 AFS's available
What percentage of the business is cash/credit?
80% on account
20% Cash
This does vary as cash sales are increasing.
What is the age analysis of the debtors book?
Current. 30 days and 60 days
A debtors age analysis will be made available.
How could the profitability of the business be improved?
By the employment of a second representative.
By further expansion of the range of product
By opening a second branch in Cape Town or further afield.
Is Seller finance available and for what amount?
The Seller is prepared to consider a limited negotiated structured deal of no longer than a year..
What is the total staff complement?
20
Give a breakdown of staff/ functions/ length of service?
A full list is on file
Do any receive special perks or incentives?
Provident fund
Are they on contract?
All are permanently employed .
Do any have management potential?
Management is already in place. There are candidates with potential.
How involved is the Owner in running the business?
Oversees - all imports.
Stays in close contact with all suppliers
Maintains a close watch over daily activities but can be away for extended periods when the business is in the hands of competent management.
When does the current lease end?
The owner owns the properties and will become the landlord
Is there an option of renewal & what period?
Negotiable with the owner
What is the annual escalation %?
Negotiable
What are the trading hours?
Monday to Thursday 8.00am to 4.30pm
Friday 8.00am to 3.00pm
What is the square meters of the business?
1 st Warehouse - 167 sq metres
2 nd Warehouse -150 sq metres
Workshop - 170 sq metres
Montigo Warehouse - 600 sq metres
Do you require a licence?
No
What lease deposit and/or other surety is required?
Negotiable
What are the main assets of the business?
A full list is available
Are any items not included in the sale?
All included.
Fiat - owner rents to the company
Properties are not being sold
What is their overall condition?
Good
Do any require repairing?
No - all maintained
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
Kia - Nedbank +- R 200K
What are their settlement amounts?
Kia - R 200K
Will Seller settle or Buyer to take over?
Buyer to take over
Are copies of agreements available?
HP agreements - yes
Are they presently insured?
Yes
Strengths?
Excellent stable suppliers
Knowledgeable staff
Quality management team
Excellent range of products
Excellent stock holding with a good stock analysing control system.
Weaknesses?
There are no perceived weaknesses
Opportunities?
Growth in development
Increased range of product
Expansion into a second branch
Threats?
Always competition but they are well established in the market.
What is the reason for the sale?
Owner wishes to take earlyish retirement to enjoy the fruits of his labour and to pursue other interests such as travel and the possibility of immigration..
Why is this a good business?
Very well known for quality products and service - excellent name in the market
Quality experienced staff in sales and administration
Good technical staff
Good back up service
