Fire protection equipment and servicing business

Asking Price

R2,750,000

Monthly Profit

R61,493

Asset Value

R 720,000

Stock Value

R 350,000

Yearly Net Profit

R 737,920

Summary

Established premier one-stop business for comprehensive fire protection needs domiciled inland in the Western Cape region. Servicing and maintenance of fire protection equipment, the business has an extremely large client base who are serviced on a cyclical basis to ensure legal compliance of the customer’s needs. The business specialises in servicing, refilling, repairing, and installing select fire equipment, and sales of allied equipment such as fire blankets, SABS-approved signage, high volume sound horns etc. The servicing and maintenance is a need for businesses and premises where regulations require that fire prevention and controls are compliant. Customers include pre-schools and schools, restaurants and guesthouses, churches, sports venues, garages and workshops, shops, factories etc. Over the past 4 years the Owner has built this business into the main “go–to” business for fire safety in the region. The business and the Owner are fully compliant with the licencing and legal requirements to operate under stringent conditions where all visits and servicing and sales require a very rigid paper trail and legal and insurance company compliance

Give me more information

How long has the business been established?

This business was established over 27 years ago

How long has the owner had the business?

Since 2022

How does the business operate on a daily basis?

One of the Owners is actively involved on a operational basis and is the face of the business, assisted by 2 general workers.

How are the clients attracted to the business?

Since they are to main supplier of this equipment and service, they are in strong demand within the region amongst various sectors from schools, restaurants, guest houses, factories, businesses etc.

What Advertising/Marketing is carried out?

The business already has an estimated 90% of the footprint in the region, so intense marketing is not required.
The word of mouth endorsement is strong, and limited Google marketing is carried out.

Does the business have any contract work?

No, but the business services their clients on a regular cycle as are the requirements to ensure legal compliance.

What competition exists?

There is very little effective competition in the region.

What are the seasonal trends?

There is no significant seasonality as the type of service this business delivers is on a cyclical basis.

Is the business VAT Registered?

Yes

What VAT documentation is on file?

As required

Are there up-to-date Management Accounts available?

Pending

What is the age analysis of the debtors book?

There is a bad debt recovery pending

How could the profitability of the business be improved?

There are a number of opportunities that could be considered by a new Owner if so desired.

Is Seller finance available and for what amount?

Seller finance is not available.
Please note that Proof of funds will be required before confidential information can be shared with a potential Buyer.

What is the total staff complement?

3 with the Owner
Two are general workers

How involved is the Owner in running the business?

On a daily operational basis in the field seeing clients.
Managing the required paper flow and responsibilities in line with legal and SABS requirements..

When does the current lease end?

The non active Director is the owner of the property so a favourable lease is in place currently.
A 3 year lease will be negotiated with the Buyer but the business is relocatable if required.

Is there an option of renewal & what period?

Yes, subject to negotiation

What are the trading hours?

08.00 to 5.00 pm daily Monday to Friday.

What is the square meters of the business?

Approximately 74 square meters.

Is a copy of the lease available?

A Commercial Lease will be granted.

Do you require a licence?

There are a number of legal requirements for an Owner to ensure compliance.
These include an SABS approved course, ongoing training and compliance and the Owner must be qualified to operate within this industry and to sign off appropriate documentation.

What are the main assets of the business?

Re-filling tooling and equipment on the premises.
Two fully equipped vehicles for on-site operational requirements.
SABS Required on-site display items and endorsements.
A data base of over 4 years of record keeping, SABS endorsement and regulatory documentation.
A comprehensive stockholding.

Are any items not included in the sale?

Yes, the Sellers laptop and external hard drive as well as cellphone are not included.
The Cell phone sim card will be handed to the Buyer.

What is their overall condition?

All assets are in good working order.

Which assets are on lease/HP and with whom?

There are a few items of equipment that are retained for filling purposes and ongoing hired basis and remain the property of the Supplier.

Are copies of agreements available?

Yes

Are they presently insured?

Yes

Strengths?

Over 1800 clients on their data base, all of whom require a service periodically.
The business has a guesstimated footprint of 90% ownership of the regions requirement.
A 3 year tender by a local municipality appears to be allocated to this business shortly.

Weaknesses?

This is an actively operational business where the business Owner needs to be fully involved and on the road interfacing with the clients on a regular cyclic basis.
Very stringent document maintenance in line with SABS and Fire Safety standards/ Insurance requirements, needs to be prepared and kept up to date.

Opportunities?

Geographical expansion...... there is an opportunity to geographically expand the territorial coverage.
Branch out into allied business opportunities such as Health and Safety, First Aid etc

Threats?

There are no known threats to this business if the Owner maintains the current service levels.

What is the reason for the sale?

The Owners feel that they have reached a point where they can afford to scale down and spend more personal time with family etc and as such would like to relinquish the business.

Why is this a good business?

This is not a difficult business to manage, just so long as the territory is well covered on a cyclical basis and the customers requirements are met.
An ideal business for a married couple who would like to work hard from Monday to Friday but enjoy the free time offered over weekends in a tranquil and healthy semi-Karoo environment.
The current rental is very attractive and the premises are very well located.....however the business can easily be relocated if so desired.