How does the business operate on a daily basis?
Enquiries are received via phone calls ,emails and via website online forms.
The technical team are building / converting / repairing and servicing e-bikes
The admin team are focusing on orders / stock ordering from overseas / marketing and media
( detail info available )

How are the clients attracted to the business?
Word of mouth represents about 80% of new business.
Other sales come from Google , Facebook, Instagram and Gumtree.

What Advertising/Marketing is carried out?
Marketing is done via YouTube, Facebook and Instagram but also via word of mouth because of the excellent reputation for quality / workmanship and customer service the business is known for.

The business have a 5000 plus following on Facebook and a 99% 5-star reviews
Google 5-star reviews are beyond a 100
2000 subscribers on Mailchimp to whom they send out monthly newsletters

Customers are relying on good reviews , knowledge and backup service - this business is ticking all this boxes

Does the business have any contract work?
They do not have a SLA agreement in place
However they do service fleets of electric bikes - mostly used by operators servicing the tourist market

What competition exists?
Main competitors : Giant , Trek , Specialised , Titan , Merida.( known factory brands )
They have found these competitors to be helpful in driving the interest in e-MTBs , and attracting more customers.
However they found that the factory e-Bikes are generally more expensive
This company caters for a very specific sector of the market - and is not competing directly against the main role player

What are the seasonal trends?
October to March ( Spring / Summer ) is the busiest period.
April to September is a quieter period.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
VAT registration

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Income statement for 2021 and 2022
2023 management accounts
2024 management accounts

What percentage of the business is cash/credit?
100% cash.
They do not provide credit

What is the age analysis of the debtors book?
Since they received 50% deposits, they do not have any debit balance, only a credit balance.

How could the profitability of the business be improved?
Prior to COVID they imported complete e-Bikes from the East - a profitable operation
The import of complete e-bikes was halted in 2021/22 due to their suppliers halting manufacturing and assembly activities as a result of the Covid pandemic in the East

They now have started taking orders on a higher-end frame integrated e-MTB brand - turnover will be stimulated and profitability will grow

Is Seller finance available and for what amount?
No.

What is the total staff complement?
3

Give a breakdown of staff/ functions/ length of service?
2 members of staff for sales and admin.
1 member of staff for technical ( workshop).

Do any receive special perks or incentives?
Workshop Staff receives R250 per complete ebike or complete e-bike conversion.
One member of sales and admin receives R100 per complete ebike.
One member of sales and admin receives R2000 extra for handling enquiries every evening ( after hours).

Are they on contract?
Yes ( Seesa Contracts as per SA Law requirements. )

Do any have management potential?
Yes , their head technician has been with the business since 2014
He is capable of running the business on a day to day basis.

How involved is the Owner in running the business?
50%
The seller often travel to Taiwan for up to a month - while communicating with the manager remotely

When does the current lease end?
February 2028

Is there an option of renewal & what period?
Yes , for another 3 years.

What is the annual escalation %?
8%

What are the trading hours?
Monday to Friday 08h30am ~ 16h30.
Saturdays 08h30am ~ 13h30.
Closed on the Last Saturday of each month.

What is the square meters of the business?
312 square meters

Is a copy of the lease available?
Yes

Do you require a licence?
Yes.
They have an import license.
They also have a special license issued by NRCS for the importing of lithium battery chargers

What lease deposit and/or other surety is required?
R110,000 ( paid already to Landlord)

What are the main assets of the business?
Computers , Tools and Furniture , stock and market leading expertise

Are any items not included in the sale?
No.

What is their overall condition?
Furniture - good condition.
Computers - good condition.
Tools - fair condition.

Do any require repairing?
No.

How have they been valued ?
Reasonable market value.

Which assets are on lease/HP and with whom?
None.

Are they presently insured?
Premises and assets are insured .

Strengths?
This business is catering for a specific market segment
Branding / Reputation for customer service and quality.
Ability to convert most bicycles including trikes and tandems to electric.
Economical prices where couples can invest in two e-bikes due to the affordability factor.
The ability to be 100% in control of imports directly with manufacturers and not be fully reliant on any local wholesalers.
The ability to now build complete e-bikes overseas with reliable assemblers / manufacturers.
This business has the best expertise regarding Bafang E motors & controllers in South Africa

Weaknesses?
The building of E-Bikes locally ( was necessary because of the supply chain lost during COVID ) -- had a negative effect on the profitability of the business

Opportunities?
Building complete e-bikes ( sub assembled direct from the East )
Supplying e-bike fleets for tour / rental companies.
Supplying e-bike fleets for the last mile city / urban deliveries ( a major trend gaining momentum in SA).

Threats?
Exchange rate.
Electricity ( e-bike batteries need electricity to charge their batteries or solar if electricity is not available )

What is the reason for the sale?
The owner is moving to Taiwan to build and supply electric motorcycles globally - not electric bicycles.
New personal challenge

Why is this a good business?
This offer a unique opportunity in the cycling industry -- a lifestyle business
The e-bike industry is booming globally
The public is offered the opportunity to enter the e-bikes market with quality & more affordable alternatives
This is a trustworthy business with an established brand
Loyal customers - appreciating the reliable products and quality of workmanship
Small staff component , but with expert knowledge
Huge data base of clients
Top Google ratings

This business can supply quality e-bikes to the growing market at a more affordable price