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LocationSouth Africa, Western Cape

Sector - Manufacturing

Asking Price
R350,000
Monthly Profit
R 51,609
Asset Value
R 1,304,405
Stock Value
R 0
Yearly Net Profit
R 619,305

Summary

This is a unique investment opportunity to acquire a 50% interest in a colour concrete flooring manufacturer and distributor on the Garden Route. This business will supply a network of retail agents throughout the Garden Route and Eastern Cape (up to Port Alfred and including Gqeberha). The ideal investor will, ideally, have experience of the building industry. PLEASE NOTE: THE FINANCIAL RESULTS INDICATED ARE FOR 100% OF THE BUSINESS, THE INVESTOR'S SHARE WOULD BE 50%.

Give me more information

Fully describe the business's activities?

A national manufacturer of cement floor and related products is wanting to expand its network of agents and installers and is seeking to set up a factory on the Garden Route (or in the Eastern Cape) to supply product to this network throughout the Garden Route and Eastern Cape (up to Port Alfred and including Gqeberha).

This investment opportunity is for a 50% shareholding and is ideally suited for someone with a background in the construction industry.

It should be noted that this is a start-up operation and the first year's financials reflect a financial forecast for the first 12 months (January to December).

How does the business operate on a daily basis?

7 hours

What Advertising/Marketing is carried out?

Digital marketing using Google Ads
Marketing and sales activities through a network of agents and suppliers of the product
Word of mouth

What competition exists?

There are established suppliers in the market, namely Cemcrete, Flowcrete and Technical Finishes.

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

Owner / Manager
Receptionist
Material Mixer and Assistant Labourer
Representative

How involved is the Owner in running the business?

Full time

When does the current lease end?

New lease to be entered into

What are the trading hours?

9.00 to 16.00, 5 days a week

What are the main assets of the business?

The purchaser will be provided with a unique product (the intellectual property) that will be a product differentiator in the cement flooring market.
The main assets for the factory will be provided and will comprise equipment to mix various raw materials to produce and package the final product. The value of these assets is approximtely R140 000 and is included in the sales price (reinvested by the existing owners).

Strengths?

The business has an excellent and very competitive product range
The purchaser will be provided with a turnkey solution to enter the market immediately

Weaknesses?

The brand is not well known and will need to be grown through marketing and other interventions

Opportunities?

The cement floor is a large and growing market

Threats?

The competition is well established and well represented in the market. A strong and effective sales presence will be required to get market share.
The excellent product range will, however, compete strongly with the competitor products.

What is the reason for establishing the business?

The reason for opening a factory and distribution business is to be closer to the large and growing markets in the Eastern Cape and along the Garden Route

Location

Contact | Enquire

Ian

Ian Tennant

LocationSouth Africa, Gauteng

Preferred method of contact

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