LocationSouth Africa, Limpopo

Sector - Sales & Services

Asking Price
Monthly Profit
R -21,598
Asset Value
R 650,000
Stock Value
R 300,000
Yearly Net Profit
R -259,180


This is an opportunity to grow a neglected fitment center into a profitable franchise Large low rental property , access to the Agri and local trade The seller is looking for a quick cash buyer

Give me more information

Fully describe the business's activities?

The business is a non - franchised tyre & fitment center that is operated from a spacious premises in the center of a plattelandse town in a vibrant Agri area
The business premises has 2 street fronts
The business is a multi service center for Tyres / shocks / battery / exhaust / skimming , relining and service of brakes / mag wheels repair & the supply of basic filters , lubricants and vehicle spares

How does the business operate on a daily basis?

The manager and / or owner opens the business at 7am
The manager and staff is attending to clients and outstanding work
The manager at the front counter is dealing with orders and the suppliers
The owner is mostly responsible for management and financial functions

What Advertising/Marketing is carried out?

Almost no marketing is carried out
The seller is not interacting with the farming community - the biggest potential market

What competition exists?

There are other fitment centers in town - they are doing fine since they do marketing , network with the farming community and offer 30 day accounts
There are other informal dealers selling tyres who is not complying to the industries' regulations that is is undercutting prices in the informal business segment

How could the profitability of the business be improved?

This business need a capital investment , business initiative and a bid of zest !
The appearance of the building ( although well located ) is dull - rebranding / paint job / sign writing / re-franchising is needed
More stock is needed and better terms with suppliers should be negotiated
Close networking in the dynamic farming community is needed
Credit terms should be offered to clients
The space of the building as well as the tools and equipment should be better utilized -
For example - basic oil services on vehicles / instalment of audio or tracker systems / resume the mag wheel repair service / stock basic 4x4 upgrade kits and equipment / install lightbars / manufacturing of bakkie rails with the available bending and welding machines

Is the business in good-standing with SARS

The seller has appointed a new financial officer to help clear up the matters with SARS
The situation arise since her husband passed away and not all obligations with SARS was followed though

With this in mind , the seller will sell the business as a running concern ( selling the assets and establishment )
The seller will sort out outstanding SARS obligations

Do any have management potential?

Yes , the counter manager have good management skills and know the trade and the suppliers

How involved is the Owner in running the business?

The owner is involved in the business by managing the finances from the back-office

How involved is the Owner in running the business?

The owner is involved in the business by managing the finances from the back-office

When does the current lease end?

This need to be confirmed , but the landlord is keen to extend a lease

What are the trading hours?

Weekdays 7H to 17H
Saturdays 7h to 13H

Describe the premises

The premises is a 470m2 building located in the CBD of the town
There are ample space for the storage of tyres / spares / exhaust parts / workshop area
It has 2 street fronts - servicing the clients with tyres and counter sales on the one front , and the workshop area on the other street front
The monthly lease is R 12500
Total monthly utilities bill is R 2000

What are the main assets of the business?

Equipment assoisiate to a Tyre and Exhaust fitment center
4 x fourpost lifts
3 x Low level lifts
2 x different pipe bending machines
2 x CO2 welders
1 x Allu Thermamax welder
Shimming machine
4 x different compressors
2 x tyre changers
2 x tyre balancers
Cutters / Drills / trollies / Presses / Chargers and testers / different jacks and many more

Differant types of welders
Brake skimming and bonding equipment
XXXXXX wheel balancing machines
Mag Wheel repair machine and allu welding equipment


Complete equipped workshop
More that enough floorspace
Knowledgeable staff
Very central and visible location


Business is not in good standing with SARS
There are not enough sellable stock in the business
The seller does not have the ability to interact with the men in the farming community
The overall outward look of the business is dull


With new ideas , capital and a sound business skills it would be easy to grow the business
New opportunities to grow the business was mentioned earlier in this report
There is the opportunity to grow into one of the well know Franchised brands ( there is non in town )


Informal selling of tyres ( used , retread and gray imports )
Informal fitment centers operating outside of the regulating bodies prescribed regulations
Large commercial farmers have they own workshops and start to deal directly with suppliers

What is the reason for the sale?

The seller inherited the business and have no plans to operate in a business segment where she feels uncomfortable in


Contact | Enquire


Arie Roos

LocationSouth Africa, Mpumalanga

Preferred method of contact

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