"Selling your business is our business"
"Selling your business is our business"
How long has the business been established?
The business started as a Sole Proprietor in 2009 and in 2015 the Pty Ltd company was established
In the past the seller operated from a business premises with a plumbing retail division.
COVID , and lessons learned in the trade has showed that bigger business with larger overheads should be avoided - thus the smaller , dynamic business model with a focus on excellence
They are focussing on General plumbing maintenance , drains , main waterlines , solar controls and heat pumps and all geyser related work
How long has the owner had the business?
15 years
How does the business operate on a daily basis?
Their highly skilled team of professionals have adapted a hands-on approach with their clients from consultation to final services; thereby ensuring services are to the highest of standards.
They have a drive for excellence - for fast, reliable services from installations, repairing, maintenance and beyond
The business pride themselves to have open communication with clients - they are going the extra mile to ensure the even tiling / ceilings and paving are repaired by approved subcontractors on the request of the client
The owner is picking up the employees at 07:00am
Job cards are discussed and teams are dispatched
The normal working day conclude at 16:30, overtime rates apply from 17:00pm onwards to both clients and employees
How are the clients attracted to the business?
Word of mouth
Facebook
Google (#1 on Google)
Supplier Referrals
What Advertising/Marketing is carried out?
Google Ads
Facebook Ads
WhatsApp Ads
Local newspaper advertising
Networking within the local business community
Does the business have any contract work?
No, their work is based on ongoing enquiries from exciting clients, new enquiries and projects and plumbing
related emergencies
What competition exists?
There are long existing plumbing companies in the city - many can be considered as competition
However the competition all many work in different fields and areas - there is abundant work available
Since this plumbing business is "top rated "" in the city - there is a constant inflow of enquiries and the owner often have the luxury to decline work
What are the seasonal trends?
May - July
Geyser Replacements/Maintenance
December
Christmas Rush, water leaks and blockages
Quiet months
May/September - specials are pushed during these months depending on what has been most popular leading up to these months
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Vat Certificate and VAT 201
Are there up-to-date Management Accounts available?
Yes
What percentage of the business is cash/credit?
90% Cash
10% Credit
How could the profitability of the business be improved?
An extra team can be established to increase the businessâs profitability and to ensure all areas of plumbing is handled timely
Currently (3rd quarter of 2024) the business is very busy - and a 3rd team is need eminently
Brining a new division within the company such as offering electrical and solar solutions
What is the total staff complement?
5 employees (this excludes the seller and the admin)
All labour related issues are handled by a labour consultant on an ad-hoc basis
Give a breakdown of staff/ functions/ length of service?
Master Plumber - 15 years in business
Lead Plumber - 13 years with business
Lead Plumber - 5 years with business
Assistant 1 - 7 years with business
Assistant 2 - 4 years with business
The wife of the seller is currently managing the bulk of the admin functions from a home office
In the event of staff turnover - the seller is always in contact with skilled individuals who are looking for job opportunities ( Applicants' CV are kept on file) There is a local skills development platform are always looking or job opportunities for student artisans as casuals
Do any receive special perks or incentives?
Yes
Cash on overtime
Transport costs when working overtime
Bonuses (birthdays)
Are they on contract?
Lead Plumbers (Permanent Contract)
Assistants (Subcontract)
Do any have management potential?
Yes, if guided accordingly
How involved is the Owner in running the business?
Full-time managing and controlling stock/quality control/customer relations and follow-up/marketing/visiting sites
The new owner does not need to BE a plumber - but would need to be able to manage people/productivity/costing / understand the basics of the service industry
What are the trading hours?
Mon - Tues 07:00am to 16:30pm
Sat 08:00 to 13:00pm
Sunday/Public Holidays: By Appointment
Overtime costs applicable thereafter for emergencies
What is the square meters of the business?
Storage for stock & equipment of about 6m x 2.5m
Most to all admin is run from phone, a small space for filing would be needed
Most to all meetings are held on site with client
Do you require a licence?
No
If you wish to carry out Compliance Certificates then you would need to be a trade qualified plumber
However, insurance have ruled out the need for certificates and need a basic form to be filled to ensure work was carried out correctly, this is mainly for geyser replacements
Describe the business premises
The business is currently run from home - and it will be possible for the new owner to continue from his / her own premises in the city area
Aldes has made provision in the expenses for a suitable storage rental for tools and materials - and assume that the admin function will be managed from home - with secure parking available for 2 x vehicles
What are the main assets of the business?
2018 Toyota Quantum 2.5 Crew cab
Specialised Drain Equipment
Tools and materials
Are any items not included in the sale?
Subaru Forester - to be deregistered
What is their overall condition?
Good to excellent condition
Do any require repairing?
No, only servicing when due or required
How have they been valued ?
Realistic current value
Which assets are on lease/HP and with whom?
Toyota Quantum 2.5d - Standard Bank - R45 000 settlement at November 2024
High Pressure Cleaner/Boiler Box - Centrafin - long term HP at R94 000 settlement period left - 35 months
Will Seller settle or Buyer to take over?
Buyer to take over
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
Recession proof
Skilled & experienced teams
Wide range of plumbing services offered
Strong relationship with suppliers
Positive word of mouth referrals
Well established relationship with clients
Known for Quality over quantity
Constant flow of income
Reputation is high, ranked #1 on Google
Special supplier costings
Special attention to details - exceeding expectations
Weaknesses?
Limit marketing budget
Reliance on local client bases
Limited online presence
Insufficient staff during peak demands
Opportunities?
Expand with more teams
Drain Team / Maintenance Team/ Insurance Team
Maintenance contracts for drains can be drawn up (hotels/guest houses/restaurants)
Consider to add an electrical team (domestic only ) as this can generate further profits to the business and open the company to a new field of growth like solar
Inferior plumbing parts and components are used by building contractors --- this increase the relevance and need for quality plumbers in the market place !
Threats?
Price increase on materials - there has been a large rise on materials which impacts the overall price to clients which can result in loosing clients
Quitter months months in the trade are unavoidable
What is the reason for the sale?
This trade has a lot of time constrains on the seller with a young family - they are considering relocation and possible emigration
Why is this a good business?
Fantastic opportunity to expand and grow yielding more profit
Itâs recession proof as this field of work is deemed a basic necessity to all
Flexible working conditions: work from home or establish an office
Constant cash flow
Exceptionally high Google rating
