Aldes Lowveld Business Brokers

Summary

6 Year old franchise video store with existing cleint base, centrally situated, easy to manage. The functional layout is perfeet for providing an addtional income with very little effort.

1. History Background

Fully describe the business's activities?

Franchise video rental outlet.

How long has the business been established?

Since May 2005

How long has the owner had the business?

Since the first day of opening. 6 years

2. Present Market

How does the business operate on a daily basis?

Staff open and run the business. The takings go into a drop safe and are collected by the owner.The owner does the purchasing of new videos and payments and banking.

How are the clients attracted to the business?

The franchise is very well known and head office assists with advertising and booklets are dropped in post boxes as well as flyers.S M S messages are sent to our client base.

What Advertising/Marketing is carried out?

H/O national advertising and flyers and sms to clients.

Does the business have any contract work?

No.

What competition exists?

Blockbuster Video

What are the seasonal trends?

School holidays. July and December busiest.

3. Financial

Is the business VAT Registered?

Yes.

What VAT documentation is on file?

All relevant SARS documents.

Are there up-to-date Management Accounts available?

Yes.

What Balance Sheet and Income Statements are available?

2011

What percentage of the business is cash/credit?

All cash.

What is the age analysis of the debtors book?

N/A

How could the profitability of the business be improved?

Hands on by the new owner.

Is Seller finance available and for what amount?

No.

What is the payback period?

27 Months

What is the ROI?

4. Staffing

What is the total staff complement?

2

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

1 full time and a casual if needed from time to time.

Do any receive special perks or incentives?

Staff are allowed to take home free videos

Are they on contract?

Yes.

Do any have management potential?

No

How involved is the Owner in running the business?

Not enough. Due to ownership of other businesses.

5. Premises

When does the current lease end?

On a month to month basis.

Is there an option of renewal & what period?

Yes.

What is the annual escalation %?

8%

What are the trading hours?

Monday to Sunday 09:00am to 21:00pm Closed on Christmas day.

What is the square meters of the business?

Is a copy of the lease available?

Yes.

Do you require a licence?

Yes.

What lease deposit and/or other surety is required?

N/A

6. Assets

Is a full asset list on file?

Yes.

Are any items not included in the sale?

Coke fridge it is on loan and Simba chips stand on loan.

What is their overall condition?

Good.

Do any require repairing?

No, not at this moment.

How have they been valued ?

On secondhand value.

Which assets are on lease/HP and with whom?

None.

What are their settlement amounts?

None.

Will Seller settle or Buyer to take over?

N/A

Are copies of agreements available?

N/A

Are they presently insured?

Yes.

7. S.W.O.T. Analysis

Strengths?

Notional brand, well stocked and good location.

Weaknesses?

The owner is not involved enough .

Opportunities?

A more hands on operation to assist with better buying which will increase turnover.

Threats?

None at this moment.

8. Reason For Sale

What is the reason for the sale?

Owner has too many other business and is not able to run video outlet to its full potential.

9. Conclusion

Why is this a good business?

Can be run without too much effort and provides an easy income.

What is the price plus stock and the net profit?

R 297 000.00 ( This price does not includ franchise fee for this business. )