Ref. No - BFS938209

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS938209

Sector - Services

Asking Price
R4,500,000
Monthly Profit
R144,813
Asset Value
R 4,578,338
Stock Value
R 200,000
Yearly Net Profit
R 1,737,750

Summary

A unique opportunity to combine lifestyle and work in world class resorts and homes. The business has developed a reputation amongst architects and developers as a trusted supply source of innovative and quality product to compliment any home.

Give me more information

Fully describe the business's activities?

The business focus is primarily the construction of all timber structures They manufacture/Construct decking, balustrades, pergolas and stairs in timber. They also do all steel work in-house.

How does the business operate on a daily basis?

The owner sets the jobs, ensures teams are assembled, materials allocated, tools are in good working order and the supervisor and his team are then dispatched to the client . As necessary the owner conducts site visits, problem solves, deals with major client concerns and manages the office administration including the purchase of materials required per job.

What Advertising/Marketing is carried out?

The owners son-in-law runs a social media page which has proven to be valuable in attracting enquiries.

What competition exists?

There are numerous small decking companies around but none that have maintained for 18 years. They are fortunate to enjoy a "large chunk" of the available business.

How could the profitability of the business be improved?

Aggressive marketing and increasing teams to match the workload - spread fixed costs and revisit suppliers pricing.

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

6 with + 15 years
2 casuals
3 - between 2 and 5 years

Do any have management potential?

No - capable as site supervisors

How involved is the Owner in running the business?

The owner is involved on a daily basis. He opens and closes the business, meets with clients, costs the jobs, allocates work to the teams and visits sites to check on progress.

When does the current lease end?

The building is owned by the seller but a lease is available to the purchaser. The owner is willing to sell the building. The asking price for the building is R 1.5Million

What are the trading hours?

07h00 - 16h00 Monday to Friday

The employees work a 40 hour week

What are the main assets of the business?

These are detailed in the asset list

Strengths?

The business has been operational for the past 18 years and has grown in line with the KZN North coast development. It has secured a reputation for service, quality and competitive pricing in the upper market, amongst architects, developers and homeowners.

Weaknesses?

The business is owner/manager run and needs daily attention.

Opportunities?

Based upon their marketplace reputation a stream of new work is constantly available. The owner is currently in discussion with an estate on the North Coast which is setting up various infrastructure. The business has enjoyed contacts from a new exclusive resort and has recently been allocated additional work by the same client.

Threats?

The usual threats exist from opposition which indicates that there is sufficient work for others to operate in the same space. Some of the opposition "buy" work based on cheaper prices.

What is the reason for the sale?

The owner is finding the physical demands of the job to be getting tougher and believes the business will thrive with young energy at the helm navigating the future. The owner is of retirement age and is wanting to "slow-down".
Location

Contact | Enquire

Grant

Grant Longhurst

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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