Plastic Injection Moulding Business For Sale
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Plastic Injection and Blow Moulding Factory
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Business For Sale

BUSINESS FOR SALE OVERVIEW

This Plastic injection and blow moulding factory is now for sale with huge spare capacity. This well established over 20 years old business has come to the market as the owner is looking to retire. With over 50% spare capacity on the existing machines and aPlastic Factory very neat facility this business is poised for some serious growth. Also included is a full facility for manufacturing of any mould required.


Fitment Centre For SaleSELLING DETAILS

Selling Price

6,000,000

Turnover pm

1,064,330

Stock

3,000,000

Profit pm

124,260

Total Asking Price

9,000,000

Nett Assets Incl

7,500,000





Pretoria Business For Sale



MANDATE REPORT

1. History Background

Fully describe the business's activities

A plastic injection and blow moulding business that has been in existence for over 20 years has come to the market as the owner is looking to retire. Included in the business are all the moulds to manufacture the various in-house products as well as a fully equipped machine to manufacture the moulds themselves.

The business currently has a Cape Town branch which will be merged with the Johannesburg branch in January resulting in substantial overhead savings for the business and the subsequent bottom line increase, this is as per an independent consultants report commissioned by the seller.

How long has the business been established?

Established in 1979 this business is 34 years old.

How long has the owner had the business?

The seller established the business.

What steps are in place to solve "load shedding" problems

None.

2. Present Market

How does the business operate on  a daily basis

The owner is hands on in the business.

How are the clients attracted to the business

90% of the clients are long standing clients of the business. There is one rep that that reps this business in addition to his other products.

What Advertising/Marketing is carried out

No advertising or marketing is carried out.

Does the business have any contract work

No, but longstanding regular clients

What competition exists

Various but few with the capacity of facilities in this business.

What are the seasonal trends

There is no real seasonality to the business, but it is closed during December as is normal in manufacturing industry.

3. Financial

Is the business VAT Registered

Yes

What VAT documentation is on file?

All Vat returns

Are there up to date management accounts?

Yes

What audited financials are available, income statement and or balance sheets?

Audited financials for 2013, 2012, 2011, 2010 are on file.

What percentage of the business is cash/credit?

30% Cash and 70% pay within 30 Days

What is the age analysis of the debtor’s book?

As above, the company has no debtors.

How could the profitability of the business be improved?

Merging the Cape Town operation into the Johannesburg site which is already planned.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

26 staff members.

Staff Breakdown and length of service

Do any receive special perks, bonuses or incentives?

No perks or incentives.

Are they on contract?

All staff members are permanently employed.

Do any have management potential?

The tool room has a manager but there is manager in production, the owner fulfils this role currently.

How involved  is the Owner in running the business

The owner is fully involved in running the business and would be willing to stay on in the business as a consultant.

5. Premises

When does the current lease end?

Owned by the seller.  A rent of R50,000pm is INCLUDED in the fixed expenses.

Is there an option of renewal & what period

Yes 5 years, the owner will look require a deposit equal to two month’s rental.

What is the annual escalation %?

8%

What are the trading hours?

Factory operates 24 hours, trading hours are from 8:30am to 16:30pm

What is the square meterage of the business?

The Johannesburg facility is ±4000m²

Is a copy of the lease available?

N/A

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Yes available.

Are any items not included in the sale?

All items on the asset register, not all the smaller items are listed.

What is their overall condition?

The machines are all in working condition.

Do any require repairing?

No

How have they been valued?

According to previous valuation

Which assets are on lease/HP and with whom?

N / A

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?

Yes

7. S.W.O.T. Analysis

Strengths

Well known and established company with strong cash flows.

Weaknesses

The current is ready for retirement and does not have the energy to push the business.

Opportunities

There is no marketer in the Johannesburg operation but there is huge scope for marketing.

The business is operating at less than 50% capacity which leaves huge scope for growth without capital expenditure.

The merging of the Cape operation with the Johannesburg will result in significant overhead savings.

Threats

The basic economy as affects all businesses.

8. Reason For Sale

What is the reason for the sale?

Owner wishes to retire.

9. Conclusion

Why is this a good business to buy?

The business is well established, liquid and solvent with a solid customer base.





 

Manufacturing Business For Sale, Plastic Business For Sale,Injection Moulding Business For Sale

Reference - R131004
 


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