Sector - Mining
The Company is on 22 vendor lists for construction and renovations projects The business is a leading supplier of blue gum timber to minesGive me more information
How does the business operate on a daily basis?
The business is on the vendor lists of 22 mines
The owner is constantly submitting tenders for numerous projects
75% of the Timber is supplied directly to the clients ( mines )
The timber is sourced form reliable suppliers in the forestry industry
Further treatment of the timber products are done on the business premises - stock levels are kept to a minimum
50% of the construction business is done on site . 20% pre- construction work is done on the premises while 30% of construction manufacturing is done by sub contractors
What Advertising/Marketing is carried out?
Bill boards on 4 busy roads
Some vehicles are branded
Workers wear branded uniforms
The business constantly submit tenders to various projects
What competition exists?
There are competition in the construction and renovation sectors , but their good reputation and pricing results that many orders are received via ordering portals and quotation processes
In the Timber business the company has a huge advantage in terms of knowledge , equipment and infrastructure
They are operating on a 80% markup without any competition
How could the profitability of the business be improved?
According to the Seller the business is operating on a optimal level
a Business partner with strategic vision can help grow the business further
Give a breakdown of staff/ functions/ length of service?
Truckdriver , Timber quality supervisor , LDV drivers , Carpenters , Tool inspectors and general workers
How involved is the Owner in running the business?
The owner is involved in running the business on a daily basis
He is the main negotiator and is oversees management functions
The Seller will be available for a handover period , or being part-time available if an alternative exit clause is structured
When does the current lease end?
The Seller is also the the owner of the premises
Aldes has made provision for a lease amount in the financial calculations
What are the trading hours?
7h to 16H on normal week days
What are the main assets of the business?
Vehicles , tools and equipment
The business is well established in this mining area and have a good reputation for its quality of service
Little or few competition resulted in high markup and profit margins
The business is holding 22 Vendor numbers with numerous mines - any products / services can be added
The business should be better positioned in terms of BBEEE
A good BEE partner should be able to bring more opportunities towards the business
A capital injection and a broader management structure might help the business to expand to the Western limb of the chrome and platinum belt as well as the coal mines
This is a unique and sought after opportunity to enter into dealing with the mining sector
A slowdown in mining activities
What is the reason for the sale?
The seller is nearing retirement and would like to start a new venture in the Western Cape
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