"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Established in 1987 to supply industrial and computer electronics, mainly to industry. They have since branched out into corporate and retail computer electronics and offer a total IT solution â networking, notebooks, cctv, pcâs, repairs and support.
They have been successful in the buy and sell of various specialised electronic hardware to small, medium and large corporate blue chip companies including top South African short term insurance houses for the past 25 years.
They have over this time been labelled specialists in the field of IT and related electronic equipment, including installation, design of audio visual and network backbone systems.
How long has the business been established?
34 years.
How long has the owner had the business?
Since inception.
How does the business operate on a daily basis?
They service small, medium and large corporate businesses on a daily basis. A large part of their revenue is derived from short term insurance claims and maintaining large business network and IT systems.
How are the clients attracted to the business?
They are well established and well known in the industry.
What Advertising/Marketing is carried out?
Website
Facebook
Key account service.
Does the business have any contract work?
No, the business does not have contract work but they are listed as preferred supplier to a number of short term insurance houses such as Hollard, Santam and the like.
What competition exists?
There are competitors but battle to match this business on price and service, this is testament to the age and success of the business.
What are the seasonal trends?
Summer months are generally better as a result of flood and lightning insurance claims, however this business trades well throughout the year.
Is the business VAT Registered?
Yes.
What VAT documentation is on file?
Yes
Are there up-to-date Management Accounts available?
Available to qualified buyers.
What Balance Sheet and Income Statements are available?
Feb 2025
What percentage of the business is cash/credit?
20% COD
80% terms
How could the profitability of the business be improved?
By listing with other insurance companies and applying an active marketing strategy.
Is Seller finance available and for what amount?
No.
What is the total staff complement?
7 staff
Give a breakdown of staff/ functions/ length of service?
Staff breakdown:
1 x tech/drivers
1 x logistics and repair manager
1 x cleaner
1 x Electrical field technician/assessor
1 x IT technician
1 x Junior technician
1 x Sales consultant
Most of the staff have been with the business for more than 10 years.
Are they on contract?
Yes.
Do any have management potential?
Yes.
How involved is the Owner in running the business?
The owner is involved in the business on a daily basis but not office bound. The business has a solid management and administration structure in place.
When does the current lease end?
The owner is looking to relocate the business to a premises more suitable and closer to their key clients.
Is there an option of renewal & what period?
Month to month lease in place until the owner can find suitable premises to relocate to.
What is the annual escalation %?
8
What are the trading hours?
Mon to Fri 8am - 4pm
Is a copy of the lease available?
Yes
What lease deposit and/or other surety is required?
2 months exit rental.
What are the main assets of the business?
Full asset list available to qualified buyers.
Which assets are on lease/HP and with whom?
4 x Nissan NP200
Will Seller settle or Buyer to take over?
Buyer to take over HP agreements.
Are they presently insured?
All assets are comprehensively insured.
Strengths?
The ever growing and impressive blue chip client base.
The ability to provide superior service and product at a reduced cost.
Overheads are not excessive.
Weaknesses?
None percieved.
Opportunities?
To be listed on other insurance companies suppliers lists.
Threats?
None percieved.
What is the reason for the sale?
The owners are reaching retirement age.
Why is this a good business?
This is a well established and profitable business that boasts an impressive client base. The business has a solid management/admin structure and a skilled workforce.
Annual Turnover Amount between R 500 thousand and R 6 million
