"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The Business manufactures all kinds of wood projects like kitchens, bathrooms, bedrooms, bars, doors, tables and chairs.
They also do veneer projects for other cupboard manufacturers as well as spray painting.
They also restore furniture.
How long has the business been established?
The business was started by the seller and his wife, 31 years ago.
In getting the Business ready for sale, they have been training 2 senior staff members, to take over their major responsibilities.
How long has the owner had the business?
31 years
What steps are in place to solve 'load shedding' problems?
A generator is in place.
What is the average KW usage?
900KwH
How does the business operate on a daily basis?
The one seller opens the factory and manages the staff and production.
The other partner, mainly focuses on quotations and installations.
How are the clients attracted to the business?
Facebook
Word of Mouth
Architects
What Advertising/Marketing is carried out?
Visits to architects
Facebook
What competition exists?
Other woodworking business in the area
What are the seasonal trends?
Quieter during builders holidays.
Closing down during December for the builders holidays
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Vat registration document
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
2024 ending Feb 2024 Balance sheet
What percentage of the business is cash/credit?
70% cash
How could the profitability of the business be improved?
Website
Marketing
What is the total staff complement?
Owner, his wife plus 7
Give a breakdown of staff/ functions/ length of service?
1 = 30 years service - does mostly solid wood work
2 = 20 years service - mostly installation - been trained to be able install at sites without the owners presence.
3 = 15 years service - can do anything on the floor - can be a floor manager as well - been training to take over from the owner on the floor.
4 = 9 years service - mostly assemble cupboards
5 = 6 years service - main installer
6 = 3 years service - sander/spray painter
7 = 2 years service - runs the veneer press
Do any receive special perks or incentives?
All the permenant staff receive stamps from the BIBC (building bargaining council) which includes
their yearly bonus, pensionfund, funeral cover and sick fund.
Are they on contract?
2 is already retired but still on contract
Do any have management potential?
Yes
How involved is the Owner in running the business?
Both are involved.
Husband see clients and do quotaions and see to installations. he has been training one of the installers to be able to take over from the seller and do installations without him.
Wife is the floor manager and oversee the manufacturing. She has been training the one senior staff member to take over from her.
A new owner can mainly step into the Qouting side of the business and see clients.
The Husband is also willing to assist on consultation to see clients and do qoutes.
When does the current lease end?
Owner owns the property - can be purchased
What is the annual escalation %?
7,5%
What are the trading hours?
7.30 to 16.00
What is the square meters of the business?
434sqm
What are the main assets of the business?
Woodworking Machinery and Tools
Hyundai 100 bakkie
Are any items not included in the sale?
Toyota bakkie
What is their overall condition?
Good
Strengths?
This business has been operating for over 30 years
Built up a good client base, subcontractors suppliers
Weaknesses?
Dependent on the owner and his wife
Opportunities?
Growing marketshare
What is the reason for the sale?
Retirement
Why is this a good business?
The building business is booming and there are lots of opportunities for growth.
Unfortunately the owner and his wife are fisically not able to go on anymore.
