LocationSouth Africa, Mpumalanga

Sector - Retail

Asking Price
Monthly Profit
R 145,193
Asset Value
R 3,815,000
Stock Value
R 0
Yearly Net Profit
R 1,742,316


Franchised Hardware and suppliers of building material to the public, builders and developers ,in the developing area of Mpumalanga.

Give me more information

Fully describe the business's activities?

The business is a franchised building and related hardware supplier in an touristic expansively developing area in Mpumalanga

How does the business operate on a daily basis?

The business operates as a franchised hardware and building supply services retailer . 70 % of the stock is bought through the franchisor and some stock is on consignment with a 45 day account with the franchisor. The business supplies stock directly to the public from a retail outlet and to the building wholesale traders, developers and builders .Some of these traders have accounts with t he business. There is no stock included in the purchase price of the business.This average stock on hand amounts to an additional 3 million which can be paid off to the franchisor if the franchisor approves of the credit limit of the new owners application .Any prospective buyer will firstly need to be approved by the franchisor for the business and the landlord for the lease.

What Advertising/Marketing is carried out?

The franchiser advertised special on a national basis for all its franchisees .The franchisee from time to time may run his own specials in his area this is done by means of media

What competition exists?

2 much smaller retailers operate within range of the business however with much less variety and amounts of stock to supply the same building industry . The business is afforded better prices to supply due to the franchisors buying power offer supportive stock levels on account ,stock variety and quantities as well as competitiveness prices as that of the
other competitors .

How could the profitability of the business be improved?

By adding additional lines to the current compliment and increasing operational space to accommodate such

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

There is i an employees list available for perusal

Do any have management potential?

Yes there are 4 managers , among them one main manager

How involved is the Owner in running the business?

The owner and the managers run the business, the owners is active in the business but it can operate without him actively involved.

When does the current lease end?

2023 with an option to renew

What are the trading hours?

7:00 17:00 Monday to Friday and 8:00 to 13:00 Saturdays . Closed Sundays.

What are the main assets of the business?

Computers, shelving office furniture, key cutting machine printers telephone system, glass racking , signage electric fencing air cons, vehicles . The business will require a cosmetic upgrade in the next 2 years and this it is estimated will cost around 3R00,000 Vehicles are included in the sale.


The business has outgrown its current premises so it could highly benefit from increasing its operational space and adding more stock which in turn will generate more revenue

What is the reason for the sale?

The seller has other business interests


Contact | Enquire


Arie Roos

LocationSouth Africa, Mpumalanga

Preferred method of contact

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