"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
This well-known business, one of the 3 largest manufacturers in the Western Cape, operates in the manufacturing sector, specifically classified under "Headware Manufacturing Sector."
The company manufactures headwear ( ie, caps, hats, etc ) for various institutions, companies, schools, government, and wholesale suppliers.
Their core focus now is the manufacturing of caps and hats, where the process of sublimation (printing onto material) has occurred, and they stitch the cap/hat together.
A second part, which is a smaller component of the business, is to embroider onto the caps/hats.
How long has the business been established?
The business was incorporated on 31 December 1993, making it over 30 years old
How long has the owner had the business?
Since Inception
What steps are in place to solve 'load shedding' problems?
Inverter and batteries to keep the sewing machines running
How does the business operate on a daily basis?
As they are one of the leading South African manufacturers specializing in custom headwear, including caps, beanies, and hats, the owner deals with all incoming enquiries and qoutes.
After the project has been finalised, he then introducing this project into the production line.
They also produce a wide range of promotional textile items such as cushions, aprons, tablecloths, jackets, fleece blankets, and scarves.
Their core product offerings, embroidery (including 3D embroidery), digital, sublimation, and reflective printing, mobilizes them to customize products for both promotional companies and major sports brands.
Their flexibility in design, style, and color is a key differentiation.
How are the clients attracted to the business?
Clients are attracted through a combination of online presence (website), word-of-mouth, and industry reputation.
Their main market is promotional companies, schools and their longstanding relationships, with these and large sports brands, makes them a preferred supplier.
What Advertising/Marketing is carried out?
No formal marketing is in place. They rely on its website, business directories, and industry reputation.
This is where the growth is lying - acquiring more clients by becoming more visible in the online space.
Does the business have any contract work?
No - but regular well known clients come back year on year
What competition exists?
Competition includes other headwear and promotional textile manufacturers in South Africa.
What are the seasonal trends?
Demand may peak around major sporting events, year-end functions, and promotional seasons.
Winter items like beanies and scarves are likely more popular in colder months.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
To be provided during a Due Diligence
Are there up-to-date Management Accounts available?
To be provided during a Due Diligence
What Balance Sheet and Income Statements are available?
To be provided during a Due Diligence
How could the profitability of the business be improved?
Potential improvements include expanding digital marketing, diversifying product lines, and increasing direct sales to end-users.
The business has the assets and the staff to double the volume of their current output.
Is Seller finance available and for what amount?
No
What is the total staff complement?
A full staff list will be made available during a DD.
The staff consists of the owner, a receptionist, and machine operators.
How involved is the Owner in running the business?
The owner is hands on and involved with responding on enquiries, quoting clients, ensuring production take place timeously.
When does the current lease end?
The Owner owns the building and will also be putting it on the market.
We have budgeted R 35k for rent for a maximum of 12 months.
The ideal transaction would be for someone to purchase the business and move it to a smaller, approx. 250 sqm venue.
Is there an option of renewal & what period?
A New Lease will have to be signed for a maximum of 12 months.
What is the square meters of the business?
They operate in a 450sqm space but can downscale to around 250sqm.
Is a copy of the lease available?
New lease to be signed
What are the main assets of the business?
Various machines as per asset list.
Other asset as per list
Are any items not included in the sale?
Private vehicles
What is their overall condition?
Second hand but all working
Which assets are on lease/HP and with whom?
None
Strengths?
Over 30 years of experience - the seller will hand over properly
In-house embroidery with wide product range and customization
Supplies major brands and promotional companies
Weaknesses?
Limited digital marketing
Owner reliant
Opportunities?
Expand online marketing and e-commerce
Grow the client base and double the business
Diversify into new promotional product lines
Digitize the business
Threats?
Competition from other manufacturers
Economic downturns affecting promotional budgets
What is the reason for the sale?
The owner wants to retire
Why is this a good business?
Established reputation and client base
Strong manufacturing capability and flexibility
Opportunity for growth with modern marketing
