"Selling your business is our business"
Fully describe the business's activities?
Sale of new and used spare parts and fitment centre
How long has the business been established?
Established in 2006 to 2017, name was changed in 2017 to current
How long has the owner had the business?
18 years
what steps are in place to solve "load shedding" problem?
The business is not affected by loadshedding
How does the business operate on a daily basis?
Weekdays 08:00 am to 17:00
Saturdays and Public Holidays half day
How are the clients attracted to the business?
Advertising and word of mouth. Long standing business - many returning/ repeat customers.
What Advertising/Marketing is carried out?
Facebook and Newspaper
What competition exists?
Two other scrap yards in the area
What are the seasonal trends?
Easter and December increase sales in holiday seasons
How did the Covid pandemic impact the business turnover / daily operations?
We were allowed to continue to operate as essential services
Is the business VAT Registered?
No
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
AFS FY 2024
What percentage of the business is cash/credit?
Cash, EFT and Card transactions daily. No credit is offered
How could the profitability of the business be improved?
Purchasing more second-hand stock
What is the total staff complement?
Eight, excluding Three Directors
Give a breakdown of staff/ functions/ length of service?
Sales Director (Director) 13 years
CEO (Director) 18 years
Admin (Director) 7 years
Salesman 6 years
Domestic 7 years
Mechanic 7 years
Mechanic 1 year
Workshop 7 years
Workshop 4 years
Workshop 2 years
Workshop/Driver 3 years
Do any have management potential?
Yes
How involved is the Owner in running the business?
Day to day
Do they have signed employment contracts?
Yes
When does the current lease end?
31 May 2025
Is there an option of renewal & what period?
Yes, one year
What is the annual escalation %?
5%
What is the square meters of the business?
1800sqm
Is a copy of the lease available?
Yes
Do you require a licence?
Yes
What lease deposit and/or other surety is required?
None
What are the main assets of the business?
Tools, Spares, Shelving, New and used Stock
Are any items not included in the sale?
Yes 2017 U TOYOTA HILUX 2.4 GD A/C
What is their overall condition?
Good
How have they been valued ?
Market related
Which assets are on lease/HP and with whom?
Imani Group - Telephone System
Unity Fire - Part of telephone system
MFC - 2017 U TOYOTA HILUX 2.4 GD A/C
Tracker - Tracking for Bakkie
What are their settlement amounts?
Imani Telephone System R150,021.39
Unity Fire - R960 (60month contract)
MFC - R115,108.90
Tracker - R255.88 monthly
Will Seller settle or Buyer to take over?
Buyer to take over HP if bakkie is retained, as well as telephone system
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
Long standing and well established business
Unique and extensive product knowledge
Excellent customer service and efficiency
Weaknesses?
Tight marketing budget
Opportunities?
Franchise other branches using available resources to fulfill market needs. Expand social medica presence.
Threats?
Shifts in market/ supply chain
What is the reason for the sale?
Health issues
Why is this a good business?
Always a demand for spare parts for vehicles
