How does the business operate on a daily basis?
They supply electrical components to electrical contractors and other businesses. The business started off as an electrical component retailer, which evolved into an electrical wholesaler and retailer, boasting a number of large nationals as clients.

How are the clients attracted to the business?
Well known in the area with large client base.

What Advertising/Marketing is carried out?
Facebook
Twitter
Instagram
Website
All the digital platforms and advertising is managed by an external service provider.

Does the business have any contract work?
No but the business has built a loyal customer base over a long period of time

What competition exists?
There are other electrical suppliers, however this business is focused on supplying B2B and electrical contractors.

What are the seasonal trends?
Increase in trade during the summer months however this business trades well throughout the year.

Is the business VAT Registered?
Yes.

What VAT documentation is on file?
All current vat reports are available.

Are there up-to-date Management Accounts available?
Yes.

What Balance Sheet and Income Statements are available?
Current financials are available to qualified buyers.

What percentage of the business is cash/credit?
80% Business to business and rest is cash

What is the age analysis of the debtors book?
Up to 180 days

How could the profitability of the business be improved?
The business was moved from a retail space into a wholesale only premises which has resulted in a R500 000 annual saving.
The business needs to become a bigger player in the solar market and focus more on cheaper solutions to low income house owners.

Is Seller finance available and for what amount?
The seller is willing to finance the stock value.

What is the total staff complement?
8 staff

Give a breakdown of staff/ functions/ length of service?
1 manager
3 sales people
2 accounts
1 store manager
1 driver

Do any receive special perks or incentives?
4% on GP for sales above R350 000 per month per sales person.

Are they on contract?
Yes

Do any have management potential?
Yes, manager currently in place.

How involved is the Owner in running the business?
The owner is involved on a daily basis with large amount of flexibility.

When does the current lease end?
31 August 2026

Is there an option of renewal & what period?
Yes. 3 year option.

What is the annual escalation %?
8% annual escalation.

What are the trading hours?
Mon - Sat 8am to 5pm.

What is the square meters of the business?
330sqm

Is a copy of the lease available?
Yes.

What lease deposit and/or other surety is required?
2 months rent.

What are the main assets of the business?
A comprehensive asset list will be made available to buyers on request.

Are any items not included in the sale?
Yes, owners personal vehicle registered to the business.

What is their overall condition?
Good to Fair

Do any require repairing?
No.

How have they been valued ?
Financial auditor valuation.

Which assets are on lease/HP and with whom?
Nissan Van.

What are their settlement amounts?
R18K.

Will Seller settle or Buyer to take over?
Seller will settle.

Are copies of agreements available?
Yes

Are they presently insured?
All assets are comprehensively insured.

Strengths?
Well established with solid client base.

Weaknesses?
The business needs a good external sales representative to get out of Midrand and look for business in the neighbouring areas too.

Opportunities?
Establish an e-commerce store.
Large opportunity to scale the business in B2B space.

Threats?
There are no real threats unless you don't keep enough stock and sell above the market prices. The staff here are very friendly with the customers and that gives them alot of buying loyalty from customers.

What is the reason for the sale?
The owner is a registered Professional Engineer and wants to focus more on doing consulting work.

Why is this a good business?
Opportunity to buy a profitable electrical supplier with strong client base.