History and Overview Of The Business
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| Fully describe the business's activities |
This is a Property Services Company that provides all property-related services with regards to;
Electricians, Plumbers, Bathrooms, Kitchens, Drain Unblocking, Waterproofing, Handyman Service, Painting And Decorating, Building, Alterations & Additions, Tiling, Carpentry, Plastering, Dry Walling, Steel Work, Compliance Certificates, High-Pressure Cleaning, Renovations, Extensions, Bricklaying, Paving, Landscaping, End Of Tenancy Refurbishments
It has been established for 8 years and boasts a current client base of 377 clients being made up of,
- 10 Estate Agents (growing monthly)
- 7 Property Management Companies
- 10 Body Corporates which look after 2 to 3 complexes
- Private clients, a large base of private clients that use and recommend the business on a regular basis.
What needs to be understood is that due to the quality of the work and the service levels given to the clients the business is constantly picking up new private and business work as a result of word of mouth recommendations, references are available that attest to this. |
| When was the business established? |
2012 |
| How long has the owner had the business? |
The owner started the business |
How Does The Business Operate
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| How does the business operate on a daily basis |
The business is owner run with three Foreman, currently the owners son is one of the foreman but he will be leaving the business shortly to emigrate and the owner then fulfills this foreman role.
It must be noted that the owner is hands on in quoting and checking that the jobs have been done correctly, hence the reputation for quality and service the business has in the market and the continually referrals of new clients, no advertising is required. |
| How are the clients attracted to the business? |
Due to the quality of the work and the level of service delivered by the business, there is a 90% word of mouth component and the owner, therefore, does not advertise as he is not interested in growing the business any bigger than it currently is, the owner is comfortable with the current revenue produced by the business and is not personally driven to generate more, he likes the business at its current size as he finds this comfortable.
There are over 377 clients and the business gains between 3 and 5 new clients on a monthly basis.
60% of the business is repeat business |
| What Advertising/Marketing is carried out? |
The business has a Website and Facebook presence |
| Does the business have any contract work? |
No signed contracts but multiple Estate Agents, Property Management companies and Body Corporate's that use the business, some of them exclusively |
| What competition exists? |
The normal in the industry for Property Services as supplied by this business, the difference is the quality and service level supplied that sets this business apart from the rest and keeps the client base growing.
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| Seasonal Trends? |
Due to the nature of the work and the client base the business is busy through out the year, please note this is a 24/7 business as in when your clients call with a problem you must service them, this the reason so many business clients exclusively use this business and stay loyal to the business |
Financial Information
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| Vat Registered? |
No |
| Vat Documentation on File? |
Not registered |
| Management Accounts? |
Yes |
| Audited Financials? |
February 2020 |
| What as Cash/Credit Split? |
90% is EFT
10% is Cash |
| Debtors Book Age Analisys |
One large Property group is on 30 Days, the balance are 14 Days, 7 Days and Next Day
This means there is a small debtors book overall, it can grow a bit sometimes with the large group but there is no real risk in this. |
| How can you improve the profitability? |
The seller is comfortable with the current size of the business and has no interest in growing it larger, that being said for a new motivated owner they can build on the existing client base and extend this with advertising and marketing. |
| Is Seller Finance available and if so what is it? |
No |
Staffing Of the Business
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| Staff Breakdown |
3 Foremen (Years in service 8, 4) (sellers son is one but will be leaving and the seller otherwise provides this function)
5 Other staff (Years in service 7, 7, 4, 2, 1) |
| Staff Special Perks and Bonuses? |
Accounts lady gets 13th Cheque, other staff 3 Weeks extra salary, XMas Party, XMas Present, Food Basket |
| Are the staff on Contract? |
Foremen and Accounts have contracts and the rest are on Weekly contracts |
| Does any of the staff have management potential? |
Yes, the one Foreman does and stands in when the owner is on leave currently |
| How involved is the Owner in running the business? |
Owner is 100% involved in running the business |
Premises Of the Business
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| When Does the Current Lease ends? |
The current premises will only be able for a maximum of six months and by then the buyer will need to relocate the business as the premises belong to a family member
A buyer is also welcome to immediately relocate the business if they prefer. |
| Is there an option to renew? |
No, six months maximum lease |
| What is the annual escalation % |
N/A |
| What are the Trading Hours? |
While the owner starts earlier and prepares himself for the day, the staff and rest operate more along with the following time frames
07:30 - 17:00 Monday to Friday
Saturday and Sunday they are available for call outs as required, this is part of the reason that the business is so highly regarded by the client base and must be seen as a 24/7 business for any prospective buyer |
| What is the square meters? |
To be discussed with the seller as to the space requirements for staff, tools and stock |
| Is a copy of the lease available? |
Seller will draft |
| Do You require a license? |
No, however qualifications and skills in areas like Plumbing, Electrical and other trades will be an advantage |
Assets Of The Business
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| Full Asset List available? |
Three bakkies
R 30,000 Isuzu
R 80,000 Colt
R180,000 Kia 1 Ton Truck
R150,000 Tools of the business |
| Anything not included in the sale? |
A assets register with all the assets will be provided to and confirmed with the buyer of the business |
| What is condition of the assets |
All the vehicles and tools are kept in very good condition and one of the vehicles is basically new.
Ongoing repairs and maintenance is performed
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| Any Assets on Lease/HP that Buyer needs to take over? |
One of the vehicles which will be settled by the seller on the sale of the business |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
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| STRENGHTS |
Well established with a eight year track record
A solid business client base of Estate Agents, Property Management Companies and Body Corporate's, some of which use the business exclusively
In addition a large base of private clients
Three to five new word of mouth referral clients monthly
The essential services component of the business protects it from potential future lock down challenges
Well staffed with long term staff members in place, plus a Foreman that can stand in for the owners when not available |
| WEAKNESSES |
The economy but due to the quality of work and level of service the business does not appear to be suffering at all
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| OPPORTUNITIES |
With advertising and marketing the client base can be grown |
| THREATS |
None identified
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Summary
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| Why is this a good business |
For all the reasons mentioned throughout this report, a profitable, growing , well established, lock down proof, well staffed and always in demand business that correctly run will provide the same and greater levels of profitability to a new owner, with the potential to expand and grow this as big as one is prepared to drive it. There are no limitations from a regulatory or area perspective, it is up to the owner! |
| Why is the owner selling it? |
The sellers are looking at immigrating and are preparing themselves for the move, this will also enable the seller to perform an extended hand over of three months to the new owner, additional time can also be discussed if required
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