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Property Services Company
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Business For Sale


BUSINESS FOR SALE OVERVIEW


Successful Property Services company with a large client base that is growing on a monthly basis. 

The bulk of the Turnover (90%) is via EFT and therefore easy to verify the numbers of the business. If you have skills in the Property Services area this would be a wonderful business to add to your existing business or to get started with, everything is in place.

The services of the business are in demand from a wide range of business clients like Estate Agents, Property Management Companies and Body Corporate's (with multiple properties) in addition to a large base of private clients. Growth is mainly by word of Mouth and the owner really does not have to do any advertising

The business is successful and profitable and well-staffed, the seller is prepared to do a three month hand over and may be available for even longer if required by agreement.



BUSINESS SELLING DETAILS

  Selling Price     1,680,000   Turn Over Per Month     201,000 
  Stock Included 30,000    Profit Per Month 62,000
  Assets Included  440,000   R.O.I %  44%
  Total Price   1,680,000    



BUSINESS MANDATE INFORMATION
 History and Overview Of The Business
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
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.
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
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
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
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
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
 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
 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
 OPPORTUNITIES With advertising and marketing the client base can be grown
 THREATS None identified
 Summary
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


Business For Sale,Businesses For Sale,Property Service Company For Sale,Plumbing,Electrical, Maintenance,Geyser,Construction, Tiling,Johannesburg Business For Sale,Gauteng Business For Sale

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