How does the business operate on a daily basis?
Precision carpentry factory specializing in high-quality standard and custom woodworking.
Operates on a quotation and order basis, with a strong asset base and expertise in tailored projects.
Supplies casino furnishings, cabinetry, and solid surface tops while accommodating specialized client requests on an ad-hoc basis.

How are the clients attracted to the business?
Most of the client are existing and returning clients
* The business has a very good reputation in the industry , for high quality well priced products.

What Advertising/Marketing is carried out?
Very little advertising or marketing is being done .
This will be the first factor a new owner should consider

Does the business have any contract work?
The business is the preferred supplier in a specific industry - with a national footprint

What competition exists?
There will always be competition
There is cheaper , but inferior imports for the East - especially on the bathroom furniture .
Higher import costs and global disruptions act as a benefit in this regard

What are the seasonal trends?
January and February are generally quite.
Business normally gets busy in November and December .

How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was forced to close during the level 4 and 5 lockdown periods and have worked short time since.
We entered into a signed agreement with our workers , where by , if the company has insufficient work, the workers work short time and are not paid if they cannot work. ( Short Time Work Agreement ). To cut costs and save jobs.
The owner took the time to finetune systems / productivity / costs cutting and streamline the business.
Sales have been erratic owing to disruption of supplies , delays in shipping and shortages of materials to our customers , from overseas and local suppliers, which then impacts on orders to our company.

Are there up-to-date Management Accounts available?
The business is registered for VAT
The Pastel accounting system is used
AFS is available for many years
The business is in good standing with SARS

What Balance Sheet and Income Statements are available?
All Financial statements are available for the full 30 year term of the business.
All VAT documentation on file

What percentage of the business is cash/credit?
There is a very low credit risk in the business - no bad debt situation for many years.
The owner evaluates and know his clients well .
Some client pay upfront / some COD / some on a deposit bases / few on 30 days.

How could the profitability of the business be improved?
This precision carpentry business is well-positioned for growth, with key opportunities to enhance profitability.
Expanding sales through industry networking, private client engagement, and geographic reach will drive revenue.
Strengthening digital marketing, maintaining strong client relationships, and introducing new product lines can further optimize returns.
With an efficient operation already in place, the focus is on scaling output and maximizing profitability.

Is Seller finance available and for what amount?
The seller will be available to negotiate a structured deal
The buyer should have a good understanding of the trade , and need to have a substantial deposit
* The seller will consider a 60% deposit with installment payments for the balance over 24 Months at Prime plus
1%.
* The seller will also consider accepting a property on the coast of the Cape as part payment.

What is the total staff complement?
There are 11 workers in the business , plus the seller and his wife ( admin function )
Most of the staff is working for the business for more than 5 years

Are they on contract?
With the down scaling by the seller - an agreement was reached with all employees to work on an ad-hoc ( project based ) basis

Do any have management potential?
No , the workers although skilled in their jobs , do not have management potential.

How involved is the Owner in running the business?
The Owner is 100% involved in the business
* Selling / Quoting.
* Designing and costing
* Issuing of work instructions and documentation.
* Planning and priority setting
* Buying and negotiations
* Financial and stock control
* Training of staff
* General Management functions

Will the seller be available for a hand-over ?
The seller will be available for a handover period of 3 months
Beyond this period he will available on a consultation basis
Training will be needed for :
* CNC Router designing/ programming.
* Costing and quoting systems
* Introduction to key suppliers and clients
* Training on machines and specials tools
* Training in current design and work protocols
* Training on stock system and database

When does the current lease end?
The Seller also owns the property
The property is registered in a different CC and is not included in the sale - but available separately

Is there an option of renewal & what period?
a New lease agreement will need to be signed with the new owner

What is the annual escalation %?
8 %

What are the trading hours?
Monday to Tuesdays 7h00 to 16h30
Fridays from 7h00 to 14h00
Tea break 10.00 to 10.30 Monday to Friday
Lunch Break 13.00 to 13.30 Monday to Thursday.
* Currently the factory only operates on an ad-hoc basis - according to orders and projects

What is the square meters of the business?
940 sq m in total
* Offices x 2
* Office toilets x 2 / Office kitchen
* Reception 1 ( currently used as store )
* Store for components ( fittings )
* Rest rooms Male/ Female/ Plus 1 separate toilet.
* Garage 40 sq m.
* Tooling room and tool store
Different work areas :-
Machine shop and assembly and staff kitchen
Sanding
Priming and painting. Spray booth.
Fitting
Packing
Outside canteen shelter.

Is a copy of the lease available?
To be negotiate

Do you require a licence?
no

What lease deposit and/or other surety is required?
A lease deposit to the value of 2 months lease will be required with the new contract
Lights and water is for the account of the lessee.

What are the main assets of the business?
A very wide range of tools and machinery associated with a precision carpentry factory .
Small reliably ,& competent team of workers.
Designs, systems and good cliental .
Reputation for quality products and service.

* A detailed asset list will be available for serious buyers

Are any items not included in the sale?
3 x private vehicles are not included

What is their overall condition?
All equipment is very well maintained and needs very little ongoing maintenance.

How have they been valued ?
The assets were valuated at R 2.3 M
This is a conservatively valued by the owner - within his expert opinion

Which assets are on lease/HP and with whom?
Two machines are on a loan basis from hardware suppliers - the new owner would have the option to continue with this arrangement.

Are they presently insured?
All assets are comprehensively insured

Strengths?
The business is very well established with a wide range of quality machinery
The staff is experienced
The business is known for it's quality products for the general , and niche markets
The business has the flexibility to adapt to the market

Weaknesses?
Little marketing / no sales Rep / no digital footprint

Opportunities?
The business is not limited to the current lines and markets
Marketing towards a national market offer new opportunities.
The owner was contacted by the largest Casino group in SA - the supplying of gambling machine cabinets is their specialty
Turnkey opportunity

Threats?
There are cheaper imports on certain lines

What is the reason for the sale?
Owner is now 74 years of age and will retire soon

Why is this a good business?
This business offer a perfect opportunity to diversify or integrate vertically if you are already in this industry
* It has a good client base , and a broad product line
* It is flexible to adapt to any new opportunities within the industry
* Good potential for growth
* Vast untapped market
* Good reputation with clients and suppliers

What is the price plus stock and the profit?
The business is listed at R 1.75M plus R250 000 stock