How does the business operate on a daily basis?
The business creates, designs, and manufactures products per order for major retailers in South Africa.
Consistently creating fresh and new designs to align with evolving market trends.

How are the clients attracted to the business?
The business has established good relationships with major retailers in South Africa and most of their orders are from their existing customer base.
Some of the Retailers include:
- Takealot
- Builders Warehouse
- Chamberlains
- Lightning Warehouse
- Metro
- Leroy Merlin
- Superbalist
- Ericson's and more
They also have a shop and website for online orders from the public.

What Advertising/Marketing is carried out?
Website
Signage board in front of the factory
Third-party representatives sell their products to independent retailers.
E-commerce and online sales
Printed advertising

Does the business have any contract work?
Nearly 80% of products are distributed to wholesale retailers on a supply agreement.
These contractual relationships have been ongoing for 12 years.

What competition exists?
The owner has only identified 3 competitors, none of them based in Gauteng.

What are the seasonal trends?
None perceived.

Is the business VAT Registered?
Yes, all VAT documentation are up-to-date and available from their accountant.

Are there up-to-date Management Accounts available?
The businesses use Pastel for all financial inputs.
They have provided Aldes with Financial Statements for 2021 and 2022 and Management Accounts for the year ending February 2023.
2024 management accounts are available.

What percentage of the business is cash/credit?
75-80% of their business are on 30 day accounts.
The balance is paid on delivery/collection.

What is the age analysis of the debtors book?
Good, healthy debtors book and they have not encountered many issues with their customers.

How could the profitability of the business be improved?
- Increase the Sales of the Business
- Price Sensitive
- Increase online presence and sales
- New product lines

Broker Note:
Owners' drawings and personal expenses.

Is Seller finance available and for what amount?
No, however the seller will accept a structured stock payment.

What is the total staff complement?
46 - Including the owners.

Give a breakdown of staff/ functions/ length of service?
1 x Admin / Office
1 x Online Management
2 x Drivers
1 x Production Manager
2 x Supervisor

Remainder of the staff is part of the factory / manufacturing division of the business.

Do any receive special perks or incentives?
Small bonus as per the owner's discretion.

Are they on contract?
Yes

Do any have management potential?
Yes - The owner has managers and supervisors in place.

How involved is the Owner in running the business?
The owner is involved in the day-to-day activities of the business.

When does the current lease end?
The owner owns the property.

Is there an option of renewal & what period?
Owner is negotiable on the lease agreement going forward.
Owner will also consider selling the property.

What are the trading hours?
Monday - Friday 08:00 - 17:00 (Manufacturing/Factory)
Saturday: 08:00 - 13:00 (Retail Shop)

What is the square meters of the business?
+-1000 sqm
(800 sqm under roof)

Do you require a licence?
None needed.

What are the main assets of the business?
The owner has provided us with a complete asset list for the business available on request.

Are any items not included in the sale?
The owner proposed not to include his personal vehicle in the sale.
in our expenses we have added it back - This can be negotiated.

The owners recently installed solar panels and a 3-phase battery system.
This unit remains on a hire purchase agreement and the potential buyer will have to renegotiate a new lease.

What is their overall condition?
Good, working condition.

Do any require repairing?
Some of the machines are old but in good working condition.
Normal general maintenance.

How have they been valued ?
Owners own valuation.

Which assets are on lease/HP and with whom?
Solar System (Recently implemented).
Ford Ranger Bakkie.

Will Seller settle or Buyer to take over?
The buyer will need to take over the solar system hire purchase agreement.

Are copies of agreements available?
Yes

Are they presently insured?
Full, comprehensive insurance.

Strengths?
- Reputable and well-known name in the industry
- Good relationship with their client
- Solid retail customer base across (National clients)
- Asset base
- Unique product base

Weaknesses?
- Manual labour remains a requirement for the very nature of the product lines.
- Too much focus on only certain product lines. Scope to expand the range.
- Dependency on wholesalers for sales/distribution and not enough online presence.

Opportunities?
- Lots of opportunities to increase online sales.
- Expanding the product range.
- Targeting the hospitality industry.

Threats?
- Staff management is crucial

What is the reason for the sale?
The owner has reached retirement age and wishes to sell the business.

Why is this a good business?
- Unique product line.
- Great customer base consisting of reputable blue-chip clients.
- Sizable asset base.
- Well-organised distribution to all major clients - Lean and mean logistics.
- Hiccups with load shedding sorted.
- Solid base to expand and grow.