How does the business operate on a daily basis?
This business is opened 6 days a week providing customers with convenient and versatile shopping for their DIY needs. Adding value to customers by not only meeting customers expectations through superior customer service.

How are the clients attracted to the business?
The growth and success of 40 Franchise stores in the group makes it attractive and convenient for all types of customers from DIY to big contractors.

What Advertising/Marketing is carried out?
Marketing and Advertising is done by the Franchisor

Does the business have any contract work?
No

What competition exists?
Other wholesalers do sell some of the items that we stock, but not all of them.

What are the seasonal trends?
Stable throughout the year

Is the business VAT Registered?
Yes

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

What Balance Sheet and Income Statements are available?
Feb 2024

What percentage of the business is cash/credit?
65% Cash, 35% Credit

What is the age analysis of the debtors book?
30 Days

How could the profitability of the business be improved?
Offer Longer terms for contractors, and more marketing

Is Seller finance available and for what amount?
No

What is the total staff complement?
7

Give a breakdown of staff/ functions/ length of service?
4 Sales
1 Admin
1 Store man
1 Security

Do any receive special perks or incentives?
No

Are they on contract?
There are contracts in place

Do any have management potential?
Yes, Two possible candidates

How involved is the Owner in running the business?
60% involved

When does the current lease end?
September 2026

Is there an option of renewal & what period?
Yes, 3-5 years

What is the annual escalation %?
7%

What are the trading hours?
7:30 - 5pm Mon to Friday
8:00 - 2pm Saturdays & public holidays

What is the square meters of the business?
331m2

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
Deposit R 99 000 Plus Surety

What are the main assets of the business?
Tangible Assets Inventory / Stock: Electrical products, lighting, cables, switches, solar equipment, and other electrical supplies.
Premises & Fixtures: Office, warehouse, retail space, shelving, storage racks, and display units
Vehicles & Delivery Equipment: Delivery vans.
Tools & Equipment: packing tools, and safety equipment.
2. Intangible Assets Franchise Rights / Licenses: The right to operate under the Franchisor brand. Brand Reputation: Established brand recognition and customer trust. Digital Assets: Website, social media profiles, online ordering system, and databases of customers and suppliers. 3. Operational / Human Assets Trained Staff: Skilled employees in sales, customer service, technical support, and delivery. Standard Operating Procedures (SOPs): Do

What is their overall condition?
Good Working Order

Strengths?
Established relationships with suppliers and strong partnerships with reputable suppliers ensure reliable access to quality products.
Diverse portfolio of electrical products catering to various customer needs. Strong brand recognition as part of a national franchise network. Wide range of electrical products. Efficient delivery system that ensures timely service to contractors, businesses, and retail customers. Trained and skilled staff providing quality customer service. Support from the franchisor, including marketing, operational guidance, and standardized procedures

Weaknesses?
Reliance on suppliers for product availability and pricing.

Opportunities?
Increasing demand for electrical products driven by construction and infrastructure projects. Growing demand for sustainable and energy efficient products presents opportunities for product diversification.

Threats?
Economic downturns or fluctuations in demand can impact sales and revenue.

What is the reason for the sale?
Owner has other business interests.

Why is this a good business?
Electrical supplies are essential for construction, infrastructure, and maintenance projects. Demand for electrical supplies is relatively consistent, providing a stable revenue stream. Well trained staff that are committed to the business. Ability to serve both retail and corporate clients increases profitability. Operational Efficiency Streamlined order processing, inventory management, and delivery services enhance customer satisfaction and repeat business. Growth Potential Opportunities for expansion into underserved areas, online sales, and partnerships with contractors and commercial clients.
These factors contribute to the potential attractiveness of an electrical supply chain business as an investment opportunity.