"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Manufacturing of plastic moulded components for automotive, seating, lighting, point of sale and other local industries. The business uses vacuum forming machines to mould the plastic components.
How long has the business been established?
Established in 1973 as a reseller of automotive accessories, over time it began manufacturing its own range of accessories and then later more general manufacturing of other products.
How long has the owner had the business?
This family-run business, founded in 1973, was managed by the owner until 2025 when it was handed over to his son to run.
What is the average KW usage?
Between 200 and 400A three phase.
How does the business operate on a daily basis?
The business services a core range of clients who draw off moulded components as required. In addition clients also reach our for development of new products as required.
How are the clients attracted to the business?
Client base is relatively stable, new clients are referred by people in the market who know which companies have plastic moulding capabilities.
What Advertising/Marketing is carried out?
Nothing outbound. There is a basic website.
Does the business have any contract work?
While there is no specific contract work, there are long standing customers who continue to draw components moulded from standard tooling kept at the business.
What competition exists?
There is one other vacuum forming company in the area that services the local market. There are two companies that also service automotive clients.
What are the seasonal trends?
Business shuts down for 3 weeks over Christmas / New Year.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
VAT registration, returns and certificate of good standing.
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
Year ended Feb 25 (signed, available); Year ended Feb 26 (in drafting stage)
What percentage of the business is cash/credit?
Mostly credit due to the company servicing mainly other businesses. Suppliers are equally on 30 days.
What is the age analysis of the debtors book?
30 days
How could the profitability of the business be improved?
Increase turnover, by actively marketing the services of the business to new clients. The current manufacturing facility is running at approximately 50% capacity.
Is Seller finance available and for what amount?
No
What is the total staff complement?
10
Give a breakdown of staff/ functions/ length of service?
1 Full time Office Manager; 1 Full time Factory Manager; 2 Full time Factory Staff; 6 Part time Factory Staff on zero hours basis
Do any receive special perks or incentives?
The company is part of the Motor Industrial Bargaining Council (MIBCO). Full time staff are members of the MIBCO provident fund.
Do any have management potential?
Yes - Office manager and Factory manager who manage the day to day running of the business currently. Owner manages remotely.
How involved is the Owner in running the business?
2 â 4 hours per week of owners time.
Do they have signed employment contracts?
Yes for full time staff
When does the current lease end?
The business is currently occupying owned premises.
Is there an option of renewal & what period?
A new lease would need to be entered into upon sale of the business. Owner is flexible to negotiate this at time of sale. Also note that the premises is for sale as part of this deal, should the buyer elect to purchase the property too.
What is the annual escalation %?
To be discussed.
What are the trading hours?
7am to 4.30pm â 5 days a week. Longer hours are worked where required to meet client requirements.
What is the square meters of the business?
650 sq/m under roof; 400sq/m yard
Do you require a licence?
No
What lease deposit and/or other surety is required?
To be discussed.
What are the main assets of the business?
5 Vacuum forming machines; 2 Robots; Compressors; Collection of saws and cutting equipment, tooling, delivery van, forklift
Are any items not included in the sale?
Property
What is their overall condition?
Moulding machines are old, but have been kept in good working order.
Do any require repairing?
One machine requires a Plc rebuild in order to get it operating again.
Which assets are on lease/HP and with whom?
None
Are they presently insured?
Yes
Strengths?
Limited competition, high barrier to entry because of capital cost of machinery; Spare Vacuum forming capacity, and Robots add to capability to do more complex trimming; Competent management team; Central location
Weaknesses?
No staff dedicated to marketing / sales; Lack of owner presence (lives overseas)
Opportunities?
Opportunity to take market share in Point of Sale companies in Durban; Further expansion into Automotive sector â in and outside of Durban; Opportunities to diversify into other types of plastic moulding (e.g. injection moulding) serving the same client base.
Threats?
Single person dependencies; Infrastructure instability / decay
What is the reason for the sale?
Owner has inherited the business, but is working overseas,
Why is this a good business?
The business is relatively compact, based in Durban serving mainly local clients. It has a good profit margin, and the new owner can easily scale up profitability through increasing the sales through the same facility. Competition is relatively low and barriers to entry for others are high due to cost to purchase these type of moulding machines.
Annual Turnover Amount between R 500 thousand and R 6 million