How does the business operate on a daily basis?
The business operates on a quotation and order basis
90% of the manufacturing is standard range
10% of the work is special / custom designs / redesigns to suit requirements

Wooden products is sold in the forms of :
* Bathroom furniture for the builders market sold to importers/ retailers / private builders
* General Cabinetry for Home and Office
* Casino Furnishings to two large casino groups.
* Solid Surface Tops to other woodworking companies ,builders or end users.
* TV Units to retailers or end users
* Office Furniture to end users.

Other unique features :
* Two computer controlled CNC router machines
* Spray painting booths for high quality spray painting.
* Good extraction system.

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.
* The business is currently only focused on the Mpumalanga and Gauteng markets
* The business does have clients in Natal , Free State and Limpopo .

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
The owner took the time to finetune systems / productivity / costs cutting and stream line the business

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Short time work agreeement. Working short time.
Reduction of non essential staff.
Reduction of stock.

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?
The business need a new , younger owner who can :
* Increase sales ( marketing / networking within the building industry and retail market. )
* Increase sales to private individuals ( home and business owners )
* Increase the geographical footprint
* Follow-up with all existing clients
* Establish a digital marketing footprint
* New products lines

The business is already very efficient - the output must be increased

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

Do any receive special perks or incentives?
The staff are receiving traveling allowances / generous food hampers / tea room benefits
Bonuses are paid at managements discretion, and dependent on performance - this includes
Bonus of 4 weeks pay at the end of year.
Christmas food hamper , valued at R 500 each.

Are they on contract?
All the workers are on new contracts ( 1/6/2018 )
Labour related matters are outsoared to a labour consultant
Normal employment contract & Short time work contract - until business stabilises.

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

Any special arrangements for the staff related to the Covid-19 pandemic?
Only normal entrance register and temperature measurements .
We have had no Covid cases or problems.

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 family of the Seller are the owners of 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.

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?
yes

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

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 current market value 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 opportunities.



Owing to current weak marketing , there is vast opportunity to expand and improve sales.

Threats?
There are cheaper imports on certain lines

What is the reason for the sale?
Owner is now 71 years of age and wishes to retire.

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 2.9M plus R300 000 stock
The 12 month average nett profit before tax is R 70 000
There are a few big projects that will conclude soon - this will have a positive effect on the financials
The profit & selling price figures will be reviewed in July - based on the latest AFS