Summary

This business has built a strong brand over 20 years and imports and manufactures machinery used in agriculture, forestry and industry in general. A strong countrywide dealership network of 30 dealers and a loyal customer base because of its large spares inventory meaning less downtime for customers.

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Fully describe the business's activities?

A very strong brand in the "yellow machinery" market, this business is a leader in the importation and manufacturing of equipment in the industrial, agricultural, and forestry machinery sector in Southern Africa. The business has 30 active dealerships with a goal of reaching 40 dealerships in the next 12 months. The asking price excludes the property and the numerous buildings. warehouses and workshops situated thereon. The owners are asking R12 million for the property and improvements thereon.

How long has the business been established?

The business has been operating for 20 years since it was founded in 2005 by the current owners.

How does the business operate on a daily basis?

The business is managed by an MD and also a GM who sees to the the day-to-day running of the business. There are 38 staff in total.

How are the clients attracted to the business?

Extensive marketing is done via the internet. There are 3 x Sales people on board and shows such as NAMPO and others are used for showcasing their products.

What competition exists?

There is competition but the brand has been established as being much more cost effective than the opposition without the horrendously high costs. This has been accepted in the market over the last 20 years where often they are now the "go-to" brand for certain machinery.

What are the seasonal trends?

A skeleton staff is on duty during December as it tends to be quieter but they tend to be busy for various machines throughout the year.

How could the profitability of the business be improved?

Export more into Africa beyond Southern Africa with dealerships set-up. Expand into hydraulics for the machinery - this could be very lucrative with a hydraulics division and Sales Reps just for the hydraulics division.

Give a breakdown of staff/ functions/ length of service?

A full breakdown of staff is available for qualified interested parties.

Do any have management potential?

There is already a General Manager in place who basically manages the business on a day-to-day basis.

How involved is the Owner in running the business?

One owner visits the office about 50% of the time but there is a GM in place.

When does the current lease end?

The property, which has various warehouses and workshops built thereon, is owned by the company. The owners are asking R12 million for the property.

What are the main assets of the business?

A full and extensive Asset List is available for qualified interested parties.

Which assets are on lease/HP and with whom?

Some assets are on lease/HP and would have to be taken over by the purchaser as they are needed in the business.

Strengths?

The products are excellent and well-tested in the market. Service is exemplary. Large spares holding which keeps customers loyal to the brand as well as the dealerships. Exceptionally strong networks and contacts overseas with an SA based liaison based in the actual business for quick reaction times. The history of the business speaks for itself.

Weaknesses?

The owners realise they need to get in new energy due to them nearing retirement age.

Opportunities?

Opportunities are numerous: The entrance into the hydraulics market as mentioned elsewhere in this report could be exceptionally lucrative. A new redesigned telehandler will be good for new business which is being looked at. New transmission system designs - to be the go-to repair guys as there is a lack of this knowledge in the SA market.