Sector - Manufacturing
This is a unique investment opportunity to acquire a 50% interest in a colour concrete flooring manufacturer and distributor. This business will supply a network of retail agents throughout the country and neighbouring territories, with the exception of the Western Cape and Garden Route. 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 in Johannesburg to supply product to this network throughout South Africa and neighbouring territories, with the exception of the Western Cape and the Garden Route.
This investment opportunity is for a 50% shareholding and is ideally suited for someone with a background in the construction industry.
How does the business operate on a daily basis?
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.
Are financial projections available?
Financial projections are what are reflected in this report for the first 12 months of operations.
Give a breakdown of staff/ functions/ length of service?
Owner / Manager
Material Mixer and Assistant Labourer
How involved is the Owner in running the business?
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
Is any specific location required?
The location should allow for easy access to major motorways to other parts of Gauteng, Kya Sands is the likely location.
What size premises will be required?
Office, storage of material and a manufacturing area of approximately 100 sqm will be required. Delivery and despatch areas and parking also needs to be catered for.
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).
A laptop with fully loaded software and a printer worth R33 500 will also be provided and included in the sales price.
The business has an excellent and very competitive product range
The purchaser will be provided with a turnkey solution to enter the market immediately
No weaknesses identified
The cement floor is a large and growing market
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 compete strongly with the competitor products.
What is the reason for the sale?
The business is not being sold, the "sale" relates to the expansion of the business's production facilities to Gauteng in order to be closer the biggest markets and take the business to a higher level.
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