LocationSouth Africa, Western Cape

Sector - Sales & Services

Asking Price
Monthly Profit
R 333,261
Asset Value
R 6,000,000
Stock Value
R 300,000
Yearly Net Profit
R 3,999,135


This 15 year old business is very successful and profitable in the hiring and sales of a range of machinery used in the construction industry.

Give me more information

Fully describe the business's activities?

This business is involved in the import of medium sized construction equipment which it hires out and sells.

How does the business operate on a daily basis?

The business hires out construction equipment for varying lengths of time. It also sells new equipment,spare parts and consumables all which get imported from USA, Italy or China.

What Advertising/Marketing is carried out?

Very little - there is a sales representative

What competition exists?

There is competition but because they import the majority of their equipment it gives them a big advantage on capital costs as well as maintenance costs and also affords them to be very competitive in the market place for sales of new equipment. The ratio between hire sales and new equipment sales is :

How could the profitability of the business be improved?

The current owner has a number of ideas to take this business to the next level which he has not been interested in doing because of his relaxed lifestyle. He will discuss this with the new owner.

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

3 Members of staff are in management positions. The business is managed for the owner who spends little time in it.
The other 11 members are involved in sales, the workshop and administration. There is a part time bookkeeper who has been involved for many years.

Do any have management potential?

3 Members are already in management positions one with 30 years service . Admin lady with 7 years and the manager with 8 years service.

The owner has stated that he will leave bonusses equal to 3 months pay, payable one year from the sale date to ensure they remain with the business.

How involved is the Owner in running the business?

30 % of his time

When does the current lease end?

The owner owns the building so any length of lease can be negotiated at a very reasonable rental.

What are the trading hours?

7.30 to 5.00 weekdays
Closed weekends

What are the main assets of the business?

The main assets in the business are various motor vehicles and all the hire equipment.


This business imports all its equipment from China, Italy or the USA which gives it a big advantage over competition on capital costs as well as maintenance costs.
The business has built up an excellent reputation in the market and a lot of its business comes from repeat business - 90 %.
The business is well manged by 3 managers who virtually run the business.
The business is very profitable and easy to run.


None perceived


Huge opportunity for a younger energetic person to expand the business by introducing other lines that have already been identified by the owner and by opening a second branch in the Western Cape.


The only perceived threat is the economy but the business has continued to do well throughout the poor conditions over the last 18 months.

What is the reason for the sale?

Semi -retirement but the owner needs to keep a small business for his son and for certain tax benefits hence the access equipment section which he is retaining.


Contact | Enquire


Geoff Hatt

LocationSouth Africa, Western Cape

Preferred method of contact

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