Electrical business long established and trading solidly, based in the Eastern Cape region.

Asking Price

R3,531,250

Monthly Profit

R83,802

Asset Value

R 1,869,186

Stock Value

R 231,250

Yearly Net Profit

R 1,005,627

Summary

A long established business which has a solid management and operational team in place. The Manager is long serving and fully capable of running the business if so required. Known for their quality of work and service levels, they enjoy numerous repeat clients. The business undertakes cross border work as and when required to do so. There is growth potential for a new Owner within the renewable energy sector which is a market segment that this business can develop more fully. A very strong asset base ensures that a Buyer will be able to pick up the reins and carry on as if no ownership change has taken place.

Give me more information

How long has the business been established?

Since 1995

How long has the owner had the business?

Since Inception

How does the business operate on a daily basis?

The Owner being a qualified electrician is supported by the workshop manager who has 21 years of experience in the business.
They also have a team of 4 qualified electricians and 2 assistants, with 3 IETI working apprentices

How are the clients attracted to the business?

The business is well established and therefore has a strong repeat clientele.
They are known for their integrity and have strong word of mouth endorsement.

What Advertising/Marketing is carried out?

They also leave contact stickers on all repairs and new machinery.
Bill boards and local advertising initiatives.
Being so long within the region, they have numerous repeat clients.

Does the business have any contract work?

Yes, the business has a number of contracts in place with clients.

What competition exists?

There are a number of competitors within the town, each with their own client base.

What are the seasonal trends?

This business is not significantly impacted by seasonality.

Is the business VAT Registered?

Yes

What VAT documentation is on file?

As and when required

Are there up-to-date Management Accounts available?

Yes

What percentage of the business is cash/credit?

A very small cash component of about 5%.
Predominately credit card payments at around 80%, and a smaller EFT contribution of about 15%

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

The Owner oversees the business in its entirety.
He is supported by a Manager who has been with the business for over 20 years.

Do any have management potential?

The Manager is extremely capable of fully managing the business which offers the Owner relief when required.

How involved is the Owner in running the business?

On a daily operational basis.

When does the current lease end?

Th lease is currently on a year by year basis, but a longer term lease can be negotiated if so required.

Is there an option of renewal & what period?

Yes ....subject to negotiation

What are the trading hours?

07.30 to 16.30 Monday to Fridays
Overtime if and when required

What is the square meters of the business?

260 sq meters

Is a copy of the lease available?

Yes, if and when required

What are the main assets of the business?

Vehicles
Equipment
Tools and ladders
Stock

Do any require repairing?

The welding machines require repairing from time to time

How have they been valued ?

Owners second hand values

Which assets are on lease/HP and with whom?

All assets are fully paid for

Strengths?

Established for over 30 Years in the same region and known for their service levels and integrity..
The Owner and Manager team complement each other very well, allowing the Owner to take breaks if and when required.
The business has a number of contracts in place.
Cross border work has been carried out

Weaknesses?

The business currently has limited on-line presence and digital marketing although their repeat business is extremely strong.

Opportunities?

This business could be acquired by a Buyer who does not need to be operationally active in the business unless they wish to do so..
A marketing drive will grow the customer base.
There is an opportunity to expand the services into renewable energy such as backup power and energy efficiency solutions.

Threats?

The threats to this business are limited so long as experienced and efficient staff are in place.

What is the reason for the sale?

After trading successfully for over 30 years, and having a very capable manager in place for over 20 years, the Owner feels that the time has come for him to consider retirement.
With the extremely capable manager who knows and manages the business as his own, the business is now very marketable and the Owner is ready to hand it over to new blood.