Summary

This funeral business , insurance book with a neat fully purpose built mortuary including the property in a good location.

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Fully describe the business's activities?

The Business operates as an established funeral servicing business in the North West Province area, providing funeral-related services and funeral plans to its local customer and surroundings. The business is the second largest privately owned funeral home in SA. It operates on a Trademark License fee agreement (similar to a franchise, but the business has more freedoms in terms of marketing, branding, etc).

How does the business operate on a daily basis?

The business provides funeral and related services to families on a daily basis.
Staff manage client enquiries, funeral planning consultations, policy administration, collections, transportation arrangements, documentation, and coordination with churches, cemeteries, crematoriums, and service providers.
Funeral preparations, venue setup, vehicle scheduling, and family support services are coordinated throughout the day to ensure each funeral is conducted professionally and respectfully. Management oversees operations, staff scheduling, stock control, vehicle maintenance, and customer service to ensure the smooth running of all branch and funeral activities.

What Advertising/Marketing is carried out?

The Business have various marketing activities, including Social media campaigns, Newspaper campaigns, radio campaigns and customer pamphlets. A marketer is also used where extremely strong relationships were built with various facilities.

What competition exists?

Avbob is a strong competitor in the area.

How could the profitability of the business be improved?

The profitability offers scope for improvement through hands-on management, tighter cost and staff control, increased marketing and referrals, improved asset utilisation, and further growth and development of the existing policyholder book included in the package acquisition. .

What is the total staff complement?

There are three permanent staff members at the business, consists of the Marketing/Operations Manager, the Driver, and the Administrative Assistant.
There are also two temporary workers who assist on an as*and-when require basis.

Do any have management potential?

Two already do and serve in the position.

How involved is the Owner in running the business?

The owner acts as the financial Director. He stays in Gauteng and visit maybe once every 2 months.

When does the current lease end?

The Seller owns the property and wants to sell the property with the business. A rental amount of R 300 000 was deducted from the profits as an expense for the interest factor on the property.

What are the trading hours?

08h00 till 16h30 for 5 days a week

What are the main assets of the business?

A Property purpose build for a funeral operational infrastructure . A detailed asset list is available covering all assets used in the funeral operation. It includes a Ford Tourneo Van with a removable coffin board, GWM steed bakkie, funeral equipment trailers, All funeral equipment ,Computers , office furniture

Strengths?

A Strong national brand, in demand industry. An established operation trading since 2006, a recognised local presence, dedicated funeral-business premises, and the ability for a purchaser to consider the business, property and valued policyholder book which forms part of the complete package acquisition.

Weaknesses?

The Owner is not in a position the visit the business regularly and has interests in Gauteng that have taken priority .

Opportunities?

With hands-on ownership, the scope to expand is massive, as the area includes the entire Brits and Hartbeespoort areas, with possible expansion into Rustenburg, as the Rustenburg area is currently vacant. A purchaser will acquire the funeral servicing business together with the property and the policyholder book. A combined acquisition will provide an operating premises, funeral-service capability and an existing policyholder base.

Threats?

Due to the nature of the industry, very few threats, except compliance issues. The new Owner should always ensure that the Department of Health compliance remains a priority.

What is the reason for the sale?

The owners business interests have shifted to Gauteng. Since his father's passing, he took over his businesses .
It is a well established branch, and he is therefore not desperate to sell, but feel it would be better off in a more hands-on owner's hands. The business enjoyed good growth year on year .