Aldes Lowveld Business Brokers

Summary

A very well established and longstanding power tool sales and repair business. With a full basket of accessories machinery and equipment to service the building and development industry.

1. History Background

Fully describe the business's activities?

Sales of power tools as well as woodwork and metalwork. Machinery, hand tools, accessories, furniture, fittings and minor hardware for repair cent re.

How long has the business been established?

Established April 1994

How long has the owner had the business?

Sins April 1994

What steps are in place to solve 'load shedding' problems?

Standby 6 KVA generator.

What is the average KW usage?

Used pre paid and now converted to meter. Unknown at present.

2. Present Market

How does the business operate on a daily basis?

Open 07:30 pm and close at 16:30 and is a retail cent re.

How are the clients attracted to the business?

In the past via advertising through various media and shows. Currently via W.O.M and service at website.

What Advertising/Marketing is carried out?

There is a website.

Does the business have any contract work?

No.

What competition exists?

Builders Warehouse, Lowveld Bou, Nelspruit Armatures Winders and Lowveld Garage Equipment.

What are the seasonal trends?

December not a good month and April is normally affected by the no of public holidays.

3. Financial

Is the business VAT Registered?

Yes.

What VAT documentation is on file?

Registration Doc.

Are there up-to-date Management Accounts available?

Yes.

What Balance Sheet and Income Statements are available?

Pastel.

What percentage of of the business is cash/credit?

40% Cash and 60% Credit.

What is the age analysis of the debtors book?

30 to 60 Days.

How could the profitability of the business be improved?

Acres if advertising in local news paper.

Is Seller finance available and for what amount?

Yes, 20%.

What is the payback period?

36 Months.

What is the ROI?

4. Staffing

What is the total staff complement?

13 Staff

Give a breakdown of staff/functions/length of service?

Do any receive special perks or incentives?

Sales staff 0,5% of their sales repair supervisor R15-00/ Repair.

Are they on contract?

Only the carpenter.

Do any have management potential?

Yes.

How involved is the Owner in running the business?

Daily.

5. Premises

When does the current lease end?

Do not have one.

Is there an option of renewal & what period?

Yes, 5 years.

What is the annual escalation %?

10%

What are the trading hours?

Open at 07:30 pm to 16:30 am Monday to Friday.

What is the square meterage of the business?

675sqm. Ground level with mezzanine of 545sqm.

Is a copy of the lease available?

None.

Do you require a licence?

No.

What lease deposit and/or other surety is required?

6. Assets

Is a full asset list on file?

Yes.

Are any items not included in the sale?

Yes.

What is their overall condition?

Good.

Do any require repairing?

No.

How have they been valued. ?

Which assets are on lease/HP and with whom?

Telephone system and copier and water purifier.

What are their settlement amounts?

Hire.

Will Seller settle or Buyer to take over?

Buyer take over.

Are copies of agreements available?

Yes.

Are they presently insured?

Yes.

7. S.W.O.T. Analysis

Strengths?

Good staff knowledge, back up, demo, unique organized and stock.

Weaknesses?

Advertising, no mobile rep and not doing any shows.

Opportunities?

Enough area to utilize of other lines of merchandise.

Threats?

Bored.

8. Reason For Sale

What is the reason for the sale?

Daughter and son in law migrated to New Zealand used to work for me left because of crime want to see my grandchildren grow up.

9. Conclusion

Why is this a good business?

Has become a household name and is unique established.

What is the price plus stock and the net profit?

Price plus stock is R 5 500 000.00 and net profit per month R 61 393.00 Stock at Cost R 2 800 000.00.