Official COVID-19 Information: www.sacoronavirus.co.za
Official COVID-19 Information: www.sacoronavirus.co.za
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LocationSouth Africa, Gauteng

Sector - Sales & Services

Asking Price
R 10,150,000
Monthly Profit
R 207,248
Asset Value
R 1,628,014
Stock Value
R 0
Yearly Net Profit
R 2,486,970

Summary

This business focuses on the public sector. It has supply contracts with blue chip IT equipment and consumable suppliers. There is great potential to grow and expand the business through the recruitment of IT sales specialists.

Give me more information

Fully describe the business's activities?

The business is based in Pretoria and is a leading independent service provider offering Information Technology turnkey related products and solutions to both the Public and Corporate sectors. The focus is to supply only top tier products, professional services and support which ensures solid and lasting client relationships

How does the business operate on a daily basis?

8.00 to 17.00

What Advertising/Marketing is carried out?

Working predominantly with Government Departments, the company has been operating in terms of the SITA RFB 2007 contract since 2016. It has also submitted an application for the SITA RFB 2005 and RFB 2009 tenders which are in the final stages of being awarded. The company is optimistic that they will awarded these tenders too. The advantage being on these contracts means that the company does not need to spend unnecessarily on advertising and marketing.

What competition exists?

There are numerous competitors but the company has an unique selling proposition that gives it a competitive advantage. It is the only active re-seller that sells SITA and National Treasury approved re-engineered products to all Government Departments. Currently the company literally wins all the quotations as the competitors cannot compete on price.

How could the profitability of the business be improved?

Currently the company comprises the managing director who is responsible for the entire sales, operational and finance functions. Despite this, an annual average turnover of R10m is achieved. Additional staff to share the workload and expand the business will result in higher turnover and profitability.

What are the main assets of the business?

The assets comprise normal office equipment (desk, laptop, printer etc.) and motor vehicle. The assets are not being sold.

Strengths?

The business is established and has built solid business relationships with suppliers and clients. It has a high success rate in the bidding for tenders and being on the SITA contract list ensures that the Government requests quotes from the company for all the products covered by the contract. The company’s strengths include quick turnaround times and its unique selling proposition mentioned above.

Weaknesses?

Currently it is a one-person operation with resultant constraints in terms of the amount of productive and focused hours that can be brought to bear on the business

Opportunities?

Additional sales personnel and a wider geographical footprint will grow the turnover and profitability

Threats?

Competition, in most businesses, will always constitute a threat, but in this instance the company has a unique competitive edge in that it is the only active re-seller that sells SITA and National Treasury approved re-engineered products to all Government departments. The only foreseeable threat is that the high standard of current service excellence might be compromised with only one staff member working under more pressure and a growing workload as a result of the award of the new tenders mentioned above.

What is the reason for the sale?

The owner is planning to emigrate

Location

Contact | Enquire

Ian

Ian Tennant

LocationSouth Africa, Gauteng

Preferred method of contact

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