Ref. No - BFS936812

LocationSouth Africa, Gauteng

Ref. No - BFS936812

Sector - Manufacturing

Asking Price
R1,800,000
Monthly Profit
R79,355
Asset Value
R 781,825
Stock Value
R 0
Yearly Net Profit
R 952,261

Summary

For sale: A well-established custom service business with 18 years of operation, specializing in niche surface treatments across various industries. The business has a loyal client base, expertly trained staff, and a reputation for delivering high-quality results. Serving residential, commercial, and corporate sectors, it offers a unique opportunity for growth in a thriving market. This is a turnkey business with consistent profitability and room for expansion, making it an excellent acquisition for those seeking a stable, income-generating venture with a strong industry presence.

Give me more information

Fully describe the business's activities?

This business specializes in custom surface treatments and decorative enhancements, including precision sandblasting, frosted vinyl applications, and laser engraving across various materials. Serving residential and commercial clients, it offers both on-site and in-factory services. Notably, 30% to 40% of income is generated through online e-commerce, with a significant portion coming from bulk and recurring orders. The business has established a reputation for high-quality craftsmanship, serving diverse industries with a dedicated, trained staff and a loyal client base. This mix of traditional and digital sales channels ensures steady revenue and growth potential.

How does the business operate on a daily basis?

The owner is not involved onsite daily anymore, more remotely as they are involved in their new venture, however, quotes, etc. are still looked after by the owner remotely

What Advertising/Marketing is carried out?

Website and Google Adwords.

What competition exists?

For on site work there is no competition
Then on the industrial side one in Johannesburg and another for Window Art.

How could the profitability of the business be improved?

Increase the Adwords spend
Add a second team to the business

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

Permanent staff have been 10 years plus with the business
The rotational staff 3 years plus

Do any have management potential?

One of the senior staff members has potential which can be discussed with serious buyers

How involved is the Owner in running the business?

The owner is not too involved at this stage as their new venture is taking up a lot of their time.

What are the main assets of the business?

Asset list is available

Strengths?

- Industry Leader: Recognized as the No. 1 company in the decorative sandblasting and surface treatment industry.
- High Demand for Services: Strong demand for refurbishment services, ensuring a steady stream of projects.
- Specialized Expertise: Well-established expertise in handling fine grits like glass and garnet, meeting the needs of detailed and delicate work.
- Diverse Client Base: Serves a wide range of industries, from residential to commercial and corporate clients.
- Robust Online Sales: 30% to 40% of income is generated through e-commerce, providing consistent bulk and recurring orders.
- Experienced Staff: Trained and skilled team delivering high-quality craftsmanship.
- Established Reputation: Nearly two decades of proven success and strong brand recognition.

Weaknesses?

- Owner's Limited Availability: The current owner lacks the time to fully dedicate to the business, potentially limiting its growth and strategic direction.
- Limited Marketing: Potential underinvestment in marketing and business development due to the owner’s time constraints.

Opportunities?

- Market Expansion: Approach other companies in related industries to expand the client base and increase revenue streams.
- Bulk Sand Reselling: Buy sand in bulk (already in 50Kg bags on pallets), resell per bag to meet the strong demand — an opportunity requiring minimal effort but some capital investment.
Geographic Growth: Expand operations to new regions, leveraging the business’s strong brand and industry reputation.
Increased E-commerce: Further develop the online sales platform to capture more bulk and recurring orders.

Threats?

Owner’s Availability: The primary threat is the current owner’s limited availability, which could impact strategic growth and day-to-day operations.
Market Competition: While currently the industry leader, any emerging competition could pose a challenge if not proactively managed.
Operational Strain: High demand for services, if not managed well, could strain resources and affect service quality or lead times.

What is the reason for the sale?

The seller after all these years has become involved with a new venture that requires his expertise and time
Location

Contact | Enquire

Frank

Frank Schrempel

LocationSouth Africa, Gauteng

Preferred method of contact

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