Ref. No - BFS937818

LocationSouth Africa, Gauteng

Ref. No - BFS937818

Sector - Manufacturing

Asking Price
R2,300,000
Monthly Profit
R84,599
Asset Value
R 0
Stock Value
R 100,000
Yearly Net Profit
R 1,015,191

Summary

A rare chance to acquire a fully equipped nursery furniture manufacturer, operating for 35 years and supplying custom MDF/Supawood products to major corporate clients.

Give me more information

Fully describe the business's activities?

35 year old furniture manufacturing business supplying 2 x Blue Chip corporates with custom designed furniture.

High quality, practical and affordable products targeting the needs of all parents. Product range from smartly designed nursery (baby) furniture , i.e. cots/cribs, toddler beds and chest of drawer units.

How does the business operate on a daily basis?

The business is regarded as a light industrial business and manufactures nursery furniture out of MDF/Supawood board. Products are manufactured completely from start to finish by means of an automated CNC machine as well as numerous other hand-operated machinery. Products are sprayed in two spray-booths with an overhead conveyor system travelling through a drying tunnel. Once completed, products are then packaged and sent out for delivery throughout SA as well as Africa. The working hours are Monday to Friday.

What Advertising/Marketing is carried out?

The current customers of the business do all of their own marketing and advertising on their own social networks.

Social Media pages have recently been created for the business.

What competition exists?

Similar operations located in the country supply exclusive Blue Chip corporates.

How could the profitability of the business be improved?

They have targeted the public directly, outside of the supply of 2 corporates.
Contact has been made with a new Blue Chip retail outlet to supply their products to them.

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

General factory work. Some staff have been part of the business for 15 years plus.

Do any have management potential?

Yes, semi-potential.

How involved is the Owner in running the business?

100% involved in the day-to-day running

When does the current lease end?

The business is located on the property and is owned by the seller and his spouse.

What are the trading hours?

07h00-16h25 Monday to Thursday
07h00-14h25 Friday

What are the main assets of the business?

Numerous wood working machinery as well as spraying equipment including an overhead conveyor system and drying tunnel. Hyundai H100 delivery van and flat-bed trailer. 72 amp industrial diesel generator

Strengths?

Seasoned wood manufacturing experience
High quality checks and assurance
Quality product at an affordable price
Excellent customer service
Good brand name in the market

Weaknesses?

Sole-Proprietor
High level of commitment to only 3 customers (potential 4th customer)

Opportunities?

Increased Product ranges

Threats?

3 Customers generating almost 100% of the revenue.
No SLA's in place. However ther are terms in place.

What is the reason for the sale?

Looking to relocate to another province
Sellers have been involved for pretty much their entire working lives and need a change.
Location

Contact | Enquire

Greg

Greg Grose

LocationSouth Africa, Gauteng

Preferred method of contact

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