"Selling your business is our business"
Fully describe the business's activities?
Design and Manufacture of Industrial Fans, Ovens, Reverse Pulse Filters, Rotary Valves, Wet Scrubbers, Cyclones, Ducting, Sheetmetal
Design, Manufacture and Install of Ventilation systems, Dust Extraction and Fume Extraction systems, Kitchen Canopies
They are a registered member of the Steel and Engineering Industries Federation of South Africa (SEIFSA)
The Cape Chamber of Commerce and the Construction Industries Development Board (CIDB) with an M4 Grading.
How long has the business been established?
Since 1968 - 56 years
How long has the owner had the business?
The business is a family business, established in 1968 by the owner's late parents. The owner joined the business after finishing military service.
After his father passed away in 1984, he assumed the responsibility of the business operations with his late brother, who passed away in 2020.
What steps are in place to solve 'load shedding' problems?
A generator was installed
How does the business operate on a daily basis?
Design, Manufacture and Installation of Dust Extraction systems: fans, reverse pulse filtration units, screw conveyors, trough conveyors, rotary valves, cyclones, bag filters, wet scrubbers.
Design, Manufacture and Installation of Industrial Ovens: curing ovens, burn off ovens, conveyor ovens, drying oven, rotating trolleys, standard trolleys and oven fans.
Design, Manufacture and Installation of Paint Booths and Fume Extraction systems: manufacture of fans, ducting, plenums, flush mounted lights, doors
Design, Manufacture and Installation of Ventilation systems: fans, ducting, filter boxes
Design, manufacture of Extraction systems: fans, ducting, hoods, filtration units.
Design, Manufacture and Installation of Kitchen extraction systems: canopies, hoods, ducting and fans.
Manufacture Steel products: siloâs, ducting, ladders, gantryâs, cat ladders, stairways.
Design, Manufacture, Install and Supply of: SISW BCC Centrifugal fans, DIDW BCC Centrifugal fans, SISW FCC Centrifugal fans, DIDW FCC Centrifugal fans, Radial Blade Centrifugal fans, Paddle fans, High Temperature fans, Roof Mounted fans, Air Handling Unit fans â (SISW BCC, DIDW BCC, SISW FCC and DIDW FCC), Light Duty fans â (SISW BCC, SISW RB)
How are the clients attracted to the business?
Approximately 70% of the business is repeat business from existing clients with the balance made up by new business.
Clients are attracted by word of mouth, cold calling and their presence on the internet.
What Advertising/Marketing is carried out?
They have a staff member who follows up on all quotation sent, contacts prospective clients as well as the website.
Does the business have any contract work?
They have no contract work.
Every job is preceded by a formal quote and an order being placed with the required deposit.
What competition exists?
There is one main local competitor that they compete against in terms of fan manufacture and on some of the large extraction projects.
Various smaller companies also quote on some of the smaller projects.
What are the seasonal trends?
Over the years their range of products has eliminated the effect of seasonal trends.
Is the business VAT Registered?
The business is VAT registered. SARS certificate of compliance is available.
What VAT documentation is on file?
Up to the present month.
Are there up-to-date Management Accounts available?
Yes, they have monthly management accounts available.
What Balance Sheet and Income Statements are available?
The audited financials and monthly accounts are up to date.
The company financial year end is July to June.
What percentage of the business is cash/credit?
They have negligible cash transactions.
The bulk of the business is based on a deposit that is payable with the order
Payments at prearranged milestones with a small balance on completion.
What is the age analysis of the debtors book?
As at 30 06 2024:
0.87% in 60 days; 54.97% in 30 days and 44.17% current
How could the profitability of the business be improved?
By increasing/targeting the sales of fans they would be able to increase their share of the national market of ±R500million
Is Seller finance available and for what amount?
No
What is the total staff complement?
34
Give a breakdown of staff/ functions/ length of service?
A complete list of staff is on file
Do any receive special perks or incentives?
No
Are they on contract?
All are permanently employed except for one welder who is on a short term contract
Do any have management potential?
Yes, there are two staff members who presently serve as directors with others who have the potential to step up into a managerial position.
How involved is the Owner in running the business?
While the owner is at the business full time, he can be away for extended periods..
He is mainly involved in the technical aspects of design and sales
When does the current lease end?
The present lease ended in June 2023.
A new lease will be signed at R55 000.00 per month.
The monthly levy and generator cost would be added
The property is held in a family trust owned by the business owner.
Is there an option of renewal & what period?
To be negotiated with the owner
What is the annual escalation %?
8%
What are the trading hours?
Monday to Friday start 07H00 and close at 16H30 except for Friday close at 14H30
What is the square meters of the business?
1060m² with an additional ±130m² mezzanine level and ±45m² upstairs office space
Is a copy of the lease available?
Yes
Do you require a licence?
No
What lease deposit and/or other surety is required?
The deposit would consist of: one monthâs rental, one monthâs electrical costs and one monthâs levies.
Electrical costs are ±R11 000.00 per month
What are the main assets of the business?
A full asset list is on file
Are any items not included in the sale?
The small trailer
What is their overall condition?
All in very good condition
Do any require repairing?
All the assets are in good working order.and have been well maintained.
How have they been valued ?
They have been valued by our auditors with input from management
Which assets are on lease/HP and with whom?
Two vehicle are on finance, all other assets are fully paid for.
The property owners installed a diesel generator that is being paid off over a four year agreement.
The telephone system is on a rental of R990.00 per month.
What are their settlement amounts?
The one bakkie has a settlement of ±R45 000.00
The second bakkie - Toyota Hilux 2.4, was leased in November 2024. Settlement R 411 000. Leased at R 6965/month.
The generator has a settlement of ±R360 000.00
Will Seller settle or Buyer to take over?
The Seller will settle the older bakkie as well as the generator.
The lease on the new Toyota Hilux to be taken over .
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
The business is profitable, with a healthy bank account. The product range ensures that they have ongoing orders on hand. They have dedicated staff, and while some are unionized, they have never experienced any issues or industrial action whatsoever
Weaknesses?
They do not import the smaller fans for domestic and industrial use.
They are having to subcontract the manufacture of electrical panels and wiring for their ovens.
With an increase in sales, this could be done in-house.
Opportunities?
Initially increasing their share of the fan market, is the biggest opportunity.
Secondly, they could increase their market share of manufacturing industrial ovens - to be discussed with a new owner.
Threats?
At present they do not have any threats to the business.
What is the reason for the sale?
The owner wishes to retire but will be available for an extended handover period and on a consultancy basis thereafter.
Why is this a good business?
While the business in its present state is profitable, profits can be increased depending on the drive, marketing and available capital of any prospective buyer
