Independent Estate Agency in sought after Garden Route town, over 10 years of successful trading.

Asking Price

R3,400,000

Monthly Profit

R310,360

Asset Value

R 267,122

Stock Value

R 0

Yearly Net Profit

R 3,724,316

Summary

Based in one of the most sought after Garden Route towns for semi-grating people this independent Estate Agency business trades very profitably. The Owner is very community orientated and sponsors a number of social sporting events and charities as well as marketing in magazines etc. They offer marketing incentives and initiatives within certain sporting activities However the Owner feels that the time has come to move into the next phase of their life.

Give me more information

How long has the business been established?

12 Years

How long has the owner had the business?

Since Inception

Fully describe this property and its income earning activities.

Estate Agency operating predominately within the domestic residence sector.

How does the business operate on a daily basis?

The Owner is very actively involved in all aspects of the business from canvassing to obtain listings, listing and selling of the properties and all aspects of the marketing from sporting sponsorships, promotional activities and above the line marketing initiatives.
They have the support of an office administrator who also manages the rentals.
There are numerous activities that this business is involved in across a wide spectrum.

How are the clients attracted to the business?

Word of mouth supported by numerous marketing initiatives within the area of operation.
Strong presence over many years in this industry.
An excellent reputation and year on year successful sales makes this an attractive business to successfully market and sell ones property.

What Advertising/Marketing is carried out?

A full list will be given to a qualified Buyer at time of Due Diligence.
A significant aspect of the marketing embrace sponsorships of social sporting events with branded prizes and handouts which ensures that this business retains a high profile presence in their area of operation.
Donations to local charities.
Advertisement in selected magazines.
Listings on the Property 24 site.

What competition exists?

There are a number of estate agencies in the town each with their own select clientele.

What are the seasonal trends?

The region where this business is situated as with most areas of the Garden Route is impacted by seasonality.
This area is one of the most desired destinations of people relocating from the North as well as for foreign investors.

Is the business VAT Registered?

Yes

What VAT documentation is on file?

VAT returns

Are there up-to-date Management Accounts available?

Yes

What percentage of the business is cash/credit?

All the deposits are paid directly into a lawyers trust account.

How could the profitability of the business be improved?

A new owner could expand the coverage to include commercial properties as well as small holdings if they so wished.

What is the total staff complement?

5 Permanent Staff
1 Part-time staff member

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

Office Manager who handles the property rental controls and office duties.

How involved is the Owner in running the business?

The Owner is actively involved in all aspects of the business:
- Liaison with home owners and buyers
- Selling and marketing of the business
- Liaison with lawyers and other business associates
- Attending and participating in sports events and other sponsorships
- Organizing and sourcing of marketing handouts from suppliers etc.

When does the current lease end?

The current lease ends in January 2028.
The office has a high visibility and profile in the main street and the internal look-and-feel is very high-end to indicate a high level of professionalism to their clients.

What are the trading hours?

Daily 08-00am to 16-30pm
Saturdays during the peak season the office opens for the morning.

What is the square meters of the business?

The office is 60 square meters and set in prime position.

Is a copy of the lease available?

Yes, as and when required

Do you require a licence?

No specific license but the Buyer will need to be a registered estate agent with the PPRA, with required qualifications for the position and in possession of a valid Fidelity Fund certificate.

What are the main assets of the business?

Office Equipment
Furniture and Fittings
Boardroom table and chairs
Desks with chairs and pedestals
Sofa and side tables etc
Inverter.
Camera's
TV' screens
Computers and Printers
Switchboard

Are any items not included in the sale?

Yes, there is a shredder on the premises which is the private property of the Owner and is not recorded on the asset list.
The one vehicle may be taken over at an agreed price if so desired.

How have they been valued ?

A comprehensive list of each asset with its purchase price and written down value will be made available at due diligence process.

Which assets are on lease/HP and with whom?

There is one printer on lease...details will be made known to the Buyer

Are they presently insured?

Yes

Strengths?

Year on year substantial profitability proves the strength of the business.
The Seller is fully involved with all aspects of the business and will ensure a comprehensive hand over of the business.
Well known, well supported and highly profitable estate agency operating in the premium sector of domestic homes for over 10 years.
The business sponsorships and marketing initiatives cover a wide spectrum of social sporting events, charities and magazines etc.
This business is not part of a franchise brand which ensures more profitability for the Owner.
The Seller is prepared to offer an extended hand over period subject to agreed terms and conditions.

Weaknesses?

There are no weaknesses for a Buyer who must be qualified in the property sales sector.

Opportunities?

Appoint more agents.
List commercial properties and small holdings.
Increase the territorial coverage.

Threats?

To an Owner who is qualified within this sector there are no threats.

What is the reason for the sale?

The Owner has been very successful in this business over the many years.
They now wish to down scale and spend more quality time with family and pursuing their personal interests.
The Seller is prepared to offer an extended hand over period subject to certain parameters.

Why is this a good business?

The business is an excellent opportunity for an experienced estate agent offering substantial earning potential.
It has been built on several years of the Owner being actively involved with the local community and sponsoring of a number of social sporting events and magazines, charities etc.
Very importantly, the fact that the Seller will offer an extended handover period is beneficial to the Buyer.

What is the profile of the ideal Buyer?

An experienced and registered estate agent with a valid Fidelity Fund Certificate.
Ideally the type of person who is prepared to be actively involved with the social sporting events that the business currently supports, and also the other initiatives such as charity events.
It suits a person who enjoys being of high profile within the community and prepared to go the extra mile and put in the extra hours.
This in not a typical 9 am to 5 pm type position and can be quite demanding but very rewarding.
A potential Buyer will also be required to submit proof of funds and a valid NDA prior to confidential information being shared.