"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Our client spotted a gap in the acrylic market. Acquiring the technology and machinery to produce high-end acrylic furniture was their main goal.
As pioneers in acrylic furniture, their products are 100% locally made. their cutting-edge facilities have made them a leader in the industry, and they receive increasing requests from customers looking for bespoke acrylic products for various uses in homes, hotels, commercial outfits and restaurants. With the demand, they made a strategic decision to reposition their business with the vision to become South Africaâs largest acrylic furniture manufacturer.
How long has the business been established?
2006
How long has the owner had the business?
The owner has had the business since inception.
What steps are in place to solve 'load shedding' problems?
The landlord is in the process of installing solar.
How does the business operate on a daily basis?
They entered the market by supplying South Africaâs top interior designers, decorators and architects as well as high-end furniture and homeware retailers. In just a few years, their reputation for being the leading supplier of acrylic products grew, allowing them to expand internationally with a global footprint.
At the moment they primarily supply a large distributor in the US. However, their products are sold globally through local boutique retailers that stock their products. Herein lies one of our greatest opportunities for growth.
The business supplies various ranges from multiple units for corporate retailer to bespoke units for private clients.
How are the clients attracted to the business?
They are the leading Acrylic furniture and homeware manufacturer in Africa!
They have well setout website with established online presence.
What Advertising/Marketing is carried out?
They currently have a fixed term contract (expiring in July 2024 but extendable should they wish to) with SA Decor who is the largest online platform for businesses in their industry. They also have an annual print publication which they have taken 2 double page spreads in. They discontinued their social media spend over a year ago as the owner didnât have the time to adequately manage it with the company he was working with, this is also something they would suggest the new owner looks into.
What competition exists?
Very little, they are industry leaders.
Is the business VAT Registered?
Yes the business is Vat registered.
What VAT documentation is on file?
All relevant Vat documentation is on file.
Are there up-to-date Management Accounts available?
Yes, financial records are current and available to qualified buyers.
How could the profitability of the business be improved?
o They are installing a smaller breaker onto the DB board which if sufficient, will decrease their monthly electricity bill by R20 â R25k.
o Their distribution company has substantially increased the amount of thicker gauge acrylic it imports to cater for the furniture business. This would result in a decrease in COS by around 15%
o The owner recently travelled to the east to meet with various suppliers including companies that supply some of the consumables they purchase on a monthly basis. Ideally buying these consumables in bulk would result in a monthly saving of R15 â R20k.
Is Seller finance available and for what amount?
No seller finance available.
Are they on contract?
All staff are on contract.
How involved is the Owner in running the business?
The owner is involved in the daily running of the business.
When does the current lease end?
⢠Lease ends 30 April 2025 however they have first right of refusal to extend it. The landlord is eager for them to stay therefore a new owner would be able to immediately extend it as per his/her length of period required
Is there an option of renewal & what period?
There is an option to renew for another 3 to 5 years.
What is the annual escalation %?
10% escalation
What are the trading hours?
8am to 5pm Mon - Fri.
What is the square meters of the business?
1540sqm
Is a copy of the lease available?
Yes a copy of the lease is available.
Do you require a licence?
No licence required.
What lease deposit and/or other surety is required?
2 months rental deposit.
What are the main assets of the business?
A comprehensive asset schedule will be provided to qualified buyers.
What is their overall condition?
Good working order.
How have they been valued ?
Owner valuation.
Are they presently insured?
All assets are comprehensively insured.
Strengths?
Years of experience in working with this product.
Industry leader
Blue chip clients
Growing export business, with growing international footprint.
Ergonomic factory.
Opportunities?
There is large opportunity to scale the business on the international front and throughout Africa.
Increase profitability and efficiency by procuring specific tools and equipment.
They discontinued their social media spend over a year ago as the owner didnât have the time to adequately manage it with the company he was working with. This is also something they would suggest the new owner looks into.
Opportunity to purchase some additional tools machinery which would greatly improve efficiency.
Threats?
Economy.
What is the reason for the sale?
The owner wants to focus his attention on other business interests.
Why is this a good business?
- Niche market.
- Industry leader with both local and international clients.
- National retailers are selling their products with great success and requesting more lines.
- Opportunities to grow the business with a more focused social media spend.
Annual Turnover Amount between R 500 thousand and R 6 million
