How does the business operate on a daily basis?
Manufacture wooden entertainment products like soccer tables and dartboard to order. They also manufacture wooden furniture for one customer, this is being exported. On average, 15% of their turnover is the furniture

How are the clients attracted to the business?
They are the lowest unit cost producer in the country.

There is competition from China but their service and prevents imports.

What Advertising/Marketing is carried out?
They do not require advertising and marketing because they deal with major chain stores

Does the business have any contract work?
No

What competition exists?
There are other manufacturers, but they are more expensive.

With the dollar rate being so high they are protected from Chinese imports. They are the lowest cost producer of our product range and deliver nationally

What are the seasonal trends?
40% of their turnover is done in the last three months of the year

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All the required VAT documents and tax clearance

Are there up-to-date Management Accounts available?
Yes

What percentage of the business is cash/credit?
100% credit

What is the age analysis of the debtors book?
On average 45 days

How could the profitability of the business be improved?
Branching out to do direct sales to wholesalers and end consumers.

Is Seller finance available and for what amount?
Yes, dependant on the details in the offer

What is the total staff complement?
49

Give a breakdown of staff/ functions/ length of service?
Will be supplied to serious sellers

Do any receive special perks or incentives?
No

Are they on contract?
Permanent contracts

Do any have management potential?
Yes

How involved is the Owner in running the business?
Fully involved. Seller performs the following duties:
1. Sales
2. Designing
3. Programming of CNC machines
4. Technical when required
5. Company Finance

Seller is willing to stay on for a negotiated period to hand over the Design and CNC work, as required

When does the current lease end?
The premises is owned by a company that is wholly owned by the seller

The property can be rented but is also available and can be bought for R9m. The property has been formally valued

Is there an option of renewal & what period?
This will be discussed as part of the new lease if a buyer doesn't want the building

What is the annual escalation %?
10%

What are the trading hours?
Monday to Thursday 7am to 5pm
Friday 7am to 3pm

What is the square meters of the business?
2300 square metres

Business is on the main road with easy access for transport of manufactured goods

Is a copy of the lease available?
There is no current lease since the building is owned by the seller. New lease will be drawn up if not interested in the property.

The current rent amount isn't market related but the valuation takes into account a higher market related amount

Do you require a licence?
No

What lease deposit and/or other surety is required?
3 months

What are the main assets of the business?
Wood working Machines
3 CNC Machines
Powder coating machine
Dust extractor Hopper, Motor and piping
3,5 Tonne Forklift
2 Compressors (30KVA) with Chiller Unit and air Receiver
2 Contour edging machines
Various wood working and metal workshop machines

Computers, desks and chairs in the office
Security cameras
Switchboard

1 Vehicle - Toyota Bakkie

Are any items not included in the sale?
Owner's 2 vehicles

What is their overall condition?
Average to good. Well maintained

Do any require repairing?
No

How have they been valued ?
The property has been valued

Which assets are on lease/HP and with whom?
There is no equipment on lease/HP

Are they presently insured?
Yes

Strengths?
Lowest cost producer of the product range.
Customers are committed to the business and products and would find it hard to change suppliers
Very low rebates from Retailers due to being a long-standing business

Weaknesses?
Business doesn't have lots of customers. Exposed to a few big customers.
Does not have a great market exposure as a stand-alone brand

Opportunities?
Selling direct to consumers and other wholesalers

Threats?
Not many.

China used to be a major threat but not so much now with the R/$ rate

What is the reason for the sale?
Owner would like to retire.

Why is this a good business?
Lowest cost producer of the product range.
Customers are committed to the business and products and would find it hard to change suppliers
Products and customers can be expanded to increase profits. The fact that the owner is willing to stay on for up to a year, if required, to perform a comprehensive handover will give anyone comfort