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Manufacturer Supplier to the Geyser Industry
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This manufacturer supplier to the geyser industry still has huge scope to grow and can double sales with the addition of an additional machine and a staff member. The business is super easy to run and the product is SABS approved which is also a regulatory requirement and as this is only one of two approved manufacturers making this a super opportunity. The seller will train the buyer on all aspects of the business. Current staff are well trained and knowledgeable and in place.


  Selling Price     1,100,000   Turn Over Per Month     148,827 
  Stock Included 100,000    Profit Per Month 30,273
  Assets Included  390,000   R.O.I %  36%
  Total Price   1,100,000    

 History and Overview Of The Business
Fully describe the business's activities  A super easy to run manufacturer and sales of Geyser related products that are required by regulations and must be SABS approved, this is one of only two approved manufacturers.

No retail trade, only wholesale which is a huge plus!
When was the business established? Nearly three years
How long has the owner had the business? The owner started the business
 How Does The Business Operate
How does the business operate on a daily basis Business is staff run with owner oversight
How are the clients attracted to the business? Business currently has more demand than can be supplied and therefore only currently focuses on it's key clients
What Advertising/Marketing is carried out? None
Does the business have any contract work? No but is preferred supplier, also due to the SABS requirement on the product the barrier to entry is substantial
What competition exists? Only one other SABS approved supplier
Seasonal Trends? It is busier in winter than in Summer due to the cyclic nature of the geyser industry
 Financial Information
Vat Registered? Yes
Vat Documentation on File? All returns are on file
Management Accounts?  Yes
Audited Financials? 2018 and Current
What as Cash/Credit Split? ±75% EFT/Account and 25% Cash
Debtors Book Age Analisys 30 Days
How can you improve the profitability? With the addition of an extra machine and a staff member the business can double it's business, the demand already exists
   Staffing Of the Business
What is the total number of Staff? Two staff members
Staff Breakdown The staff have basically been with the business since inception and do all the manufacturing and SABS compliance documentation
Staff Special Perks and Bonuses? No - the owner does however pay a bonus on his discretion at year end.
Are the staff on Contract? Yes
Does any of the staff have management potential? No
How involved is the Owner in running the business? 100% overview and all financial and administrative , staff do all the manufacturing
  Premises Of the Business
When Does the Current Lease ends? Currently month to month
Is there an option to renew? A lease should be available, alternatively the business is extremely easy to relocate and only needs three phase power
What is the annual escalation % To be negotiated with the landlord
What are the Trading Hours? 07:00-17:00 Mon to Fri
Sat if required

In winter however they can run two shifts seven days a week if required
What is the square meters? 80m² is adequate
Do You require a license? SABS approval - in place and will therefore need to buy the legal entity
 Assets Of The Business
Full Asset List available? The manufacturing equipment and trailer
 Anything not included in the sale? No all on the asset list
 What is condition of the assets Good condition, Ongoing repairs and maintenance is performed
 Any Assets on Lease/HP that Buyer needs to take over? None
 Are they insured at the moment? Yes
  SWOT Of The Business
 STRENGTHS High barrier to entry with SABS approval required, realistically a 18 month approval time frame
Only one of two SABS approved suppliers
Very solid client base with demand outstripping supply
Easy to double business
 WEAKNESSES Not enough production capacity
 OPPORTUNITIES Upgrade the facility and double the business
 THREATS None identified at this stage
Why is the owner selling it? Seller has committed to a new business venture which will be much larger and will not be able to give this business the required attention and will rather sell and invest into the new venture

Business For Sale,Businesses For Sale,Supplier,Geyser Industry,Manufacturing,Gauteng Business For Sale

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have viewed this page since 16 January 2019