"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Predominantly a shopfitting company servicing the restaurant industry and custom-fitted offices.
High-end custom house fits and bespoke furniture are also part of the service offering.
Their service is all-inclusive, enabling them to fulfill all interior needs from joinery, steel work, and upholstery even down to decorative details.
They work closely with their clients to bring their vision to life.
They are able to tailor each facet of the product and offer guidance where needed.
The combination of industry designers and expert carpenters allows them to produce a product that is of high quality, practical and stylish.
How long has the business been established?
15 Years
How long has the owner had the business?
From Inception
The Owner is prepared to remain in the business for an extended hand-over period of one year where the first two months are part of the selling price, and thereafter a income of R 55 000/month, for the remaining period, will be required.
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What steps are in place to solve 'load shedding' problems?
Generator in place.
48 Solar panels in place and inverters, so no loadshedding
How does the business operate on a daily basis?
Quote, design, make, install.
Market split : 70% Restaurants ; 15% Offices : 15% Homes
How are the clients attracted to the business?
Word of mouth, relationships, facebook, web site, visual portfolio of projects.
What Advertising/Marketing is carried out?
Bi-weekly facebook and instagram posts. Mostly relationship based.
Does the business have any contract work?
No actual contracts but are seen as preferred suppliers.
What competition exists?
Other shopfitters
What are the seasonal trends?
Very busy October - December but very busy now.
Is the business VAT Registered?
Yes.
What VAT documentation is on file?
Documentation right up to date.
Are there up-to-date Management Accounts available?
Management accounts have been prepared up to February 2025
What Balance Sheet and Income Statements are available?
Up to February 2025
What percentage of the business is cash/credit?
They receive 60% deposit by EFT then balance on completion of project by EFT.
What is the age analysis of the debtors book?
Has averaged 15 days.
How could the profitability of the business be improved?
Better store control, less wastage
Is Seller finance available and for what amount?
No
What is the total staff complement?
8 Non production staff and 43 production and installation staff with some casual workers as required.
Give a breakdown of staff/ functions/ length of service?
Full list on file
Do any receive special perks or incentives?
Sales and Project managers on basic, commission and medical.
Are they on contract?
All permanently employed
Do any have management potential?
Yes, in their fields, but not general management.
How involved is the Owner in running the business?
Quite involved but not irreplaceable.
When does the current lease end?
Annual lease renewable every December
Is there an option of renewal & what period?
Yes - renewable for a year or longer.
What is the annual escalation %?
7%
What are the trading hours?
7:30 - 4:30 -- 5 days a week
What is the square meters of the business?
1500 Sq Metres
Is a copy of the lease available?
On file for viewing.
Do you require a licence?
No
What lease deposit and/or other surety is required?
1 Month in advance.
What are the main assets of the business?
Woodworking machinary and tools.
Motor vehicles
A full list on file.
Are any items not included in the sale?
Ford Ranger
What is their overall condition?
Good
How have they been valued ?
Fair Market value
Which assets are on lease/HP and with whom?
5 X Vehicles on H/P
Everything else paid for.
What are their settlement amounts?
R 880 000 for 4 x Vehicles :
ABSA 98919746 - Toyota Quantum 279,271.27
Toyota - 86140284100 307,460.62
Wesbank-85360370878-VW Crafter 236,988.90
Wesbank 85324958399 - MBenz PV 57,439.41
1 x Ford Ranger not included - to be taken over by the owner.
Will Seller settle or Buyer to take over?
Buyer to take over the 4 X Vehicle leases.
Are copies of agreements available?
On file.
Are they presently insured?
Yes
Strengths?
⢠Custom Solutions: The business specializes in custom wooden furniture, kitchen fittings, cupboards, and shopfitting . This allows them to cater to specific client needs and preferences.
⢠High-Quality Craftsmanship: The company is known for its high-quality workmanship and attention to detail, which is highly valued by clients.
⢠Comprehensive Services: They offer a wide range of services, including joinery, steel work, and upholstery, making them a one-stop shop for interior needs
⢠Strong Client Relationships: Positive testimonials highlight their commitment to client satisfaction and ability to meet deadlines
⢠Steady Growth: The global furniture market is projected to grow significantly, driven by urbanization, increased disposable incomes, and evolving lifestyle preferences
⢠Diverse Product Range: The industry offers a wide range of products, from basic functional items to luxury and custom pieces
Weaknesses?
⢠Limited Online Presence: While they have a website, their online presence and digital marketing efforts appear limited, which could affect their reach and brand awareness.
⢠Geographical Limitation: Being based in Cape Town, their physical reach might be limited to the local area unless they expand their delivery and service areas.
⢠High Competition: The market is highly fragmented with numerous players, making it challenging for individual businesses to stand out . They have managed to stand out.
⢠Dependence on Economic Conditions: The industry is sensitive to economic cycles, with demand often fluctuating based on consumer confidence and spending power
Opportunities?
⢠Growing Demand for Custom Furniture: With increasing urbanization and a trend towards personalized home decor, there is a growing market for custom furniture solutions
⢠Expansion into E-commerce: Enhancing their online presence and offering online sales could significantly expand their market reach.
⢠Sustainability Trends: There is a rising demand for eco-friendly and sustainable furniture. They could capitalize on this by promoting sustainable practices and materials
Many designers looking for quality manufacturing businesses that are reliable with time and quality.
Threats?
⢠Economic Fluctuations: Economic downturns can affect consumer spending on non-essential items like custom furniture.
⢠Competition: The furniture industry is highly competitive, with many players offering similar products and services .
⢠Supply Chain Issues: Disruptions in the supply chain, such as material shortages or increased costs, could impact their production and profitability.
What is the reason for the sale?
The owner has built up sufficient asset value, through the business, to enable him to retire..
Why is this a good business?
They are, and always are, extremely busy.
With proper pruning, the net profit can only increase.
They are well entrenched with their customers who keep coming back.
Skilled long-standing staff.
Excellent systems in place.
