Plant Hire Business In West Rand For Sale

Business description

History Background
Fully describe the business's activities? Plant hire of tippers and water trucks predominately
How long has the business been established? Business has been established for 6 years
How long has the owner had the business? 1 year, original owner is still fully involved in the business
Present Market
How does the business operate on a daily basis? Owner run
How are the clients attracted to the business? Mainly through word of mouth
What Advertising/Marketing is carried out? Yellow pages, Internet site. All the vehicles and equipment carries the companies logo with telephone numbers
Does the business have any contract work? No, the business is primarily subies, this is based on progressive works orders which are normally six to eight weks in duration
What competition exists? The normal
What are the seasonal trends? Winter months are the busiest, summer months are fine but rain can interfere with work, however the client still pays 50% on rain days. Company closes from the builders holidays over December and January
Financial
Is the business VAT Registered? Yes, business is vat registered
What VAT documentation is on file.? All returns are available
Are there up-to-date Management Accounts available? Yes, up to date accounts are available
What Balance Sheet and Income Statements are available? February 2009
What percentage of of the business is cash/credit? 99.9% EFT
What is the age analysis of the debtors book? 30 Days from date of invoice (Buyer will need 60 days trading capital)
How could the profitability of the business be improved? BEE ownership
Is Seller finance available and for what amount? No seller finance is available
Staffing
What is the total staff complement? 26 staff in total
Give a breakdown of staff/functions/length of service? 22 x Drivers (6 months to 6 years), 2 x Mechanics, 1 x Spanner man, 1 x Workshop foreman
Do any receive special perks or incentives? All current employees that have been employed over a year are going onto a Hospital plan, Any driver doing more than 185 billable hours per month receives a R500 bonus where the company picks up the tax, etc. The record was 265 hours for the month and in the last month 2 trucks did R65,000 turnover (R115/Hr)
Are they on contract? All permanent
Do any have management potential? 1 member has management potential
How involved is the Owner in running the business? Full time
Premises
When does the current lease end? Current lease ends December 2009, the property has been sold and they must vacate by February 2010, currently looking at buying new premises close by
Is there an option of renewal & what period? See above
What are the trading hours? Site staff 07H00 - 16H30 and on site by 09H30, Workshop/Yard 05H45 - 18H00
What is the square meterage of the business? Currently 900m2, looking at 1,800m2 for new premises
Do you require a licence? No
Assets
Is a full asset list on file? Will be drawn up, To take note, the fuel usage is only to get the vehicle to site and back, the client pays for all the fuel usage at site. The other fuel is for the owners vehicles
Are any items not included in the sale? Everything on the asset list will be part of the sale
What is their overall condition? Working condition with all vehicles roadworthy with certificates (Regular maintenace is a critical component of this business)
Do any require repairing? No, the builders holiday at year end is used to respray all the vehicles to ensure they maintain the correct image. This is done by one staff member who then takes leave in January
How have they been valued. ? Insurance valuation
Which assets are on lease/HP and with whom? 1 x Tarter - Bakkie, 1 x Tarter - Water truck
What are their settlement amounts? 1 x Bakkie - R45,000, 1 x Water Truck - 250,000
Will Seller settle or Buyer to take over? Seller will settle
Are copies of agreements available? Yes, agreements are available
Are they presently insured? Yes, assets are insured
S.W.O.T. Analysis
Strengths? Hands on management, track record in market place, high service levels, relationships with clients
Weaknesses? Lack of BEE
Opportunities? BEE which can lead to contracts, etc. BEE companies can on average ask 10 to 15% higher prices
Threats? Economy
Reason For Sale
What is the reason for the sale? Business requires BEE to grow and go forwards
Conclusion
Why is this a good business? Hugely profitable
What is the price plus stock and the net profit? Priced at R12 400 000

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R6,400,000 (included in the asking price)