Fully describe the business's activities?
The business focus is primarily the construction of all timber structures They manufacture/Construct decking, balustrades, pergolas and stairs in timber. They also do all steel work in-house.
How long has the business been established?
18 years
How long has the owner had the business?
The owner started the business 18 years ago.
How does the business operate on a daily basis?
The owner sets the jobs, ensures teams are assembled, materials allocated, tools are in good working order and the supervisor and his team are then dispatched to the client . As necessary the owner conducts site visits, problem solves, deals with major client concerns and manages the office administration including the purchase of materials required per job.
How are the clients attracted to the business?
They have been in business for 18 years and have solid relationships with the architects, contractors and clients. Most of the business is secured via word of mouth. They are known for service, quality and competitive pricing.
What Advertising/Marketing is carried out?
The owners son-in-law runs a social media page which has proven to be valuable in attracting enquiries.
Does the business have any contract work?
No, the nature of the work does not result in contracts but they have enjoyed significant repeat business from numerous clients over the years. They are trusted as a business partner.
What competition exists?
There are numerous small decking companies around but none that have maintained for 18 years. They are fortunate to enjoy a "large chunk" of the available business.
What are the seasonal trends?
None - they enjoy smooth turnover throughout the year and are not influenced by months or seasons.
Is the business VAT Registered?
No, the business is recently registered in a new name and has not been VAT registered.
What VAT documentation is on file?
None for new business
Records of VAT are available for past 18 years in "old" trading name.
Are there up-to-date Management Accounts available?
No but will be provided for serious enquiries.
What Balance Sheet and Income Statements are available?
Yes - AFS 2026
What percentage of the business is cash/credit?
A deposit is secured prior to commencing the work and the balance is paid upon completion - typically 30-days.
Big projects are run in accordance with building regulations authority.
No cash in the business.
What is the age analysis of the debtors book?
Maximum of 30 days.
How could the profitability of the business be improved?
Aggressive marketing and increasing teams to match the workload - spread fixed costs and revisit suppliers pricing.
Is Seller finance available and for what amount?
No
What is the total staff complement?
11 but it varies with addition of casuals to balance staffing requirements for jobs.
Give a breakdown of staff/ functions/ length of service?
6 with + 15 years
2 casuals
3 - between 2 and 5 years
Do any receive special perks or incentives?
No
Are they on contract?
1 foreigner no contract
No formal contracts for the balance but all are registered with prescribed building authority and paid all benefits per law.
Do any have management potential?
No - capable as site supervisors
How involved is the Owner in running the business?
The owner is involved on a daily basis. He opens and closes the business, meets with clients, costs the jobs, allocates work to the teams and visits sites to check on progress.
When does the current lease end?
The building is owned by the seller but a lease is available to the purchaser. The owner is willing to sell the building. The asking price for the building is R 1.5Million
Is there an option of renewal & what period?
Yes, 3 years.
What is the annual escalation %?
This will be agreed with the tenant. Approximately 8% - 10%.
What are the trading hours?
07h00 - 16h00 Monday to Friday
The employees work a 40 hour week
What is the square meters of the business?
150 M sq plus a mezzanine of 100M sq.
Is a copy of the lease available?
No lease, building is owned by the seller.
Do you require a licence?
No
What lease deposit and/or other surety is required?
2 months rental deposit.
What are the main assets of the business?
These are detailed in the asset list
Are any items not included in the sale?
No
What is their overall condition?
All are in working condition - anything found to be faulty will be repaired prior to sale.
Do any require repairing?
As per above - any faults detected will be attended to at owners cost prior to the effective sale date.
How have they been valued ?
Owner has assigned value to the assets based on the original purchase price and cost to replace whilst accounting for fair wear and tear.
Which assets are on lease/HP and with whom?
Nil
What are their settlement amounts?
N/A
Will Seller settle or Buyer to take over?
N/A
Are copies of agreements available?
N/A
Are they presently insured?
No
Strengths?
The business has been operational for the past 18 years and has grown in line with the KZN North coast development. It has secured a reputation for service, quality and competitive pricing in the upper market, amongst architects, developers and homeowners.
Weaknesses?
The business is owner/manager run and needs daily attention.
Opportunities?
Based upon their marketplace reputation a stream of new work is constantly available. The owner is currently in discussion with an estate on the North Coast which is setting up various infrastructure. The business has enjoyed contacts from a new exclusive resort and has recently been allocated additional work by the same client.
Threats?
The usual threats exist from opposition which indicates that there is sufficient work for others to operate in the same space. Some of the opposition "buy" work based on cheaper prices.
What is the reason for the sale?
The owner is finding the physical demands of the job to be getting tougher and believes the business will thrive with young energy at the helm navigating the future. The owner is of retirement age and is wanting to "slow-down".
Why is this a good business?
The business is profitable and has a solid reputation with an 18-year track-record to support this. They provide a 360 degree service in their niche market, they are trusted to provide quality workmanship, after sales support and they offer value for money to their client base. The business is situated on the KZN North coast which continues to experience unprecedented growth in upmarket residential lifestyle estates. The products and services of this business align well for the next owner to enjoy an immediate income stream from the outset and to grow the business in many directions.