"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Manufacturing and supply of all types of commercial printing for customers.
Supply of office stationery and scholastic stationery.
Printing (in house) and publishing of the "Excelsior News" (only registered local newspaper).
How long has the business been established?
Business was registered in 1977 and the newspaper was then also incorporated which was first published on 1 March 1963.
How long has the owner had the business?
Purchased company on 31 March 2005.
What steps are in place to solve 'load shedding' problems?
Generator able to run the whole business (only 2 years old).
How does the business operate on a daily basis?
Controlled by the general manager, with daily production meetings with all department managers as to what is expected for the day and rest of the week within the different departments.
How are the clients attracted to the business?
Firstly by offering a quality service and product at market related prices within the customers timeframe.
What Advertising/Marketing is carried out?
By means of various advertising platforms, including Newspaper (our own product), website, word of mouth, face book, whatsapp, etc.
Does the business have any contract work?
We have an advertising contract with the Mkhondo Local Municipality.
What competition exists?
None within a 100 km radius.
What are the seasonal trends?
None
Is the business VAT Registered?
Yes
What VAT documentation is on file?
All Vat info available to qualified buyers.
Are there up-to-date Management Accounts available?
Yes, latest accounts available to qualified buyers.
What Balance Sheet and Income Statements are available?
AFS 2022 available. Auditors are busy with the latest financials and these will hopefully be completed within the next few weeks.
What percentage of the business is cash/credit?
25% Cash and 75% Account.
What is the age analysis of the debtors book?
Current = 64%
30 days = 27%
60 days = 9%
How could the profitability of the business be improved?
By procuring government and local municipal BEE tender contracts.
Is Seller finance available and for what amount?
No, however the seller are willing to consider reasonable proposals in order to facilitate a transaction.
What is the total staff complement?
17 staff members.
General manager - 38 years, financial/admin manager - 24 years, stationery manager - 23 years plus 3 staff (13, 9 and 6 years), advertising/news manager - 10 years plus 3 staff (10, 2 and 1 year), factory manager - 38 years plus 4 staff (23, 18, 13 and 1 year) plus 2 general staff with 14 years each
Give a breakdown of staff/ functions/ length of service?
General manager
Financial/admin manager
Stationery shop - 4
Advertising/news workers - 4
Factory manager/workers - 5
General staff with - 2
Do any receive special perks or incentives?
Departmental managers receive a managerial bonus and factory staff receive pension and medical allowance with a service bonus, All staff also receive a annual bonus depending on annual profits
Are they on contract?
Yes
Do any have management potential?
Yes
How involved is the Owner in running the business?
Hands on, daily.
When does the current lease end?
Premises is owned by company therefore no contract period, premises is not included in price, but lease or purchase is negotiable.
Is there an option of renewal & what period?
Negotiable.
What is the annual escalation %?
Negotiable.
What are the trading hours?
Monday to Friday: 08:00 - 13:00 and 14:00 - 17:00
Extra hours, work related at overtime rates.
What is the square meters of the business?
400 m2
Do you require a licence?
No licence required.
What lease deposit and/or other surety is required?
Negotiable.
What are the main assets of the business?
Equipment, machinery, vehicle and stock
Are any items not included in the sale?
All included.
What is their overall condition?
Excellent, serviced annually.
Do any require repairing?
All servicing, up to date, normal ongoing maintenance required.
How have they been valued ?
Independent company that deals in equipment sales, service and repairs.
Which assets are on lease/HP and with whom?
Photocopier - Panasonic (SASFIN)
Will Seller settle or Buyer to take over?
Seller to settle all outstanding debt on effective date, buyer to take over service contracts.
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
Reliable and competent staff with plenty of experience.
Loyal client base.
Unique offering.
Weaknesses?
None perceived.
Opportunities?
Plenty growth opportunities for the right person with drive to procure BEE contracts.
Threats?
General trend towards digital and paperless news platforms.
What is the reason for the sale?
Owner is getting older and children and grandchildren do not live in same town, also looking for a new challenge.
Being the only place of employment for the seller, time for a change.
Why is this a good business?
Business has provided a good quality of life for the owner's family for a number of years. With the competent, reliable, dedicated and skilled staff that the business employ the new owner will be able to reap these same rewards in time.
