"Selling your business is our business"
How long has the business been established?
Over 70 years in current location, currently the third owners of this branch
How long has the owner had the business?
20 years
What steps are in place to solve 'load shedding' problems?
We have no load shedding in this location
What is the average KW usage?
1000kw per month on average
Fully describe the business activities
Popular car franchise, selling new and used cars. Services of all makes of cars, warranty work on popular car makes, part sales
How does the business operate on a daily basis?
Clients will come in or call for vehicle service or repairs, buy parts or new and used vehicles sales
How are the clients attracted to the business?
We are the only popular vehicle dealership in 100km radius, we are very customer focused, best service available
What Advertising/Marketing is carried out?
Social media run in-house, sales team going out to clients, sponsoring golf days, school events via donations estimated from R1000 to R5000 per event, head office provides leads as well as potential clients who are coming to end of term with thier vehicles
Does the business have any contract work?
Yes, all popular car make in a 50km radius, all popular car make warranty and service plan
What competition exists?
Another popular car make dealership is 100km away, in this location there are other car dealerships selling different car makes
What are the seasonal trends?
The motor industry is busy all year round
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Will be supplied
Are there up-to-date Management Accounts available?
Yes
What percentage of the business is cash/credit?
All cash
What is the age analysis of the debtors book?
60 Days
How could the profitability of the business be improved?
Sell or service more vehicles
What balance sheets and income statements are available
AFS February 2024
What is the total staff complement?
11
Give a breakdown of staff/ functions/ length of service?
Accountant - 15 years
Technician - 12 years
Technician - 7 years
Salesman - 7 years
Service Manager - 14 years
Apprentices - 7 years
Sales Lady - 1 year
Parts Lady - 3 years
Dealer Principle - 19 years
Do any receive special perks or incentives?
Salesman earn commission on every car sold over a basic
Do any have management potential?
Yes
How involved is the Owner in running the business?
Full time
Do they all have signed employment contracts?
Yes
When does the current lease end?
December 2027
Is there an option of renewal & what period?
Yes, every 5 years
What is the annual escalation %?
6%
What are the trading hours?
Monday to Friday - 07:30 - 17:00
Saturday - 08:00 - 13:00
Sunday and Public Holidays - Closed
What is the square meters of the business?
+- 1800sqm
Is a copy of the lease available?
Yes
Do you require a licence?
No
What lease deposit and/or other surety is required?
Deposit R100 000
What are the main assets of the business?
Dealer signage & pylon, Dealer Portal, Server for dealer system, dealer advertising merchandise
Office furniture and equipment
Computers and Printers
Client chairs
Phone system - pbax Nashua
Wifi router, Fibre network
Fan
Coffee station, TV, water dispenser, bar fridge
Boardroom table and chairs and coffee station
Light fittings
Fire house reel, fire extinguishers
CCVTV system with 2 tvs
Alarm system
Workshop equipment, machinery, spares, shelving, clock card machines
Are any items not included in the sale?
The main office is not part of the rental agreement and will be blocked off as part of the sale.
Will not interfere with the dealership but will allow the other business to operate from that office
The Close Corporation is not part of the sale, a new name will need to be registered with the required entities
2nd Hand vehicles on the floor will not form part of the sale
Also excluded:
2023 Ford Everest
2021 Ford Ranger
2xPrinter
2xlaptop
Router
2 desk
5 chairs
1 bench
1 sofa
1 aircon
Cabinets
Chubb safe
Model cars
1 fridge
Wakefield safe
What is their overall condition?
All to latest popular car make specs
Do any require repairing?
No
How have they been valued ?
All tools and furniture paid by owner via popular car make
Are they presently insured?
Yes
Is a full asset list on file?
Yes
Strengths?
Selling the popular car make vehicle ranked in top 5 most sold vehicle in South Africa.
No other dealership in 100km radius in the KZN midlands area
Weaknesses?
Interest rates and fuel
Opportunities?
Many opportunities to sell and service more, extend the staff
Threats?
Prices of vehicles always going up
What is the reason for the sale?
Retirement
Why is this a good business?
Its a popular car make franchise, with very little direct competition. Extremely well established business in the KZN midlands area.
