"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Leading, accredited producer and supplier of ready-mixed concrete, to all sectors of the construction industry.
The business operates from a fully automated concrete plant serving large parts of Pretoria and Johannesburg, they also operate mobile plants for clients with high volume demands.
Their ready-mixed concrete is manufactured under computer-controlled operations and transported and delivered on site using sophisticated equipment and methods.
How long has the business been established?
21 years
How long has the owner had the business?
Since inception.
What steps are in place to solve 'load shedding' problems?
The business has a generator with enough capacity to run the plant during loadshedding.
How does the business operate on a daily basis?
They serve a broad array of clients, from individual homeowners to commercial and industrial developers.
They supply the following clients on a daily basis:
- concrete sub-contractors
- commercial and industrial property developers
- residential developers
- building contractors
- homeowners
- pool builders
Products include standard / normal class concrete (designed for residential applications, low-rise buildings, paving etc.) as well as high-performance concrete (designed for high-rise, commercial and industrial projects).
How are the clients attracted to the business?
Well known in the industry and centrally located servicing a large area in Gauteng.
What Advertising/Marketing is carried out?
The company employs 2 x reps employed on a commission basis who do a lot of the groundwork.
The company vehicles, which includes trucks and delivery vehicles are all branded with the company logo.
What competition exists?
There are other competitors, however this company has built a name for itself in the industry.
What are the seasonal trends?
This business trades well throughout the year.
Is the business VAT Registered?
The business is vat registered.
What VAT documentation is on file?
All vat returns are on file and up to date.
Are there up-to-date Management Accounts available?
Current management accounts available.
How could the profitability of the business be improved?
Greater owner involvement.
What is the total staff complement?
8 staff including manager.
Give a breakdown of staff/ functions/ length of service?
Monthly breakdown:
Manager R32 000
Sales rep. R12 000
Office admin R15 000
2 x general workers R4500 each
Tipper driver R8280
Loader R8600
Batcher R9600
Are they on contract?
All staff have contracts as per South Africa's labour law requirements.
Do any have management potential?
The business is currently manager run.
How involved is the Owner in running the business?
The owner is not involved on a daily basis; however, he provides oversight.
What are the main assets of the business?
Outstanding balances.
2021 liu gong loader R270 000
2021 powerstar tipper R 300 000
2024 toyota starlet R 247 000
2024 toyota e/cab R 730 000
2022 NP 200 R 155 000
Fully automated ready-mix plant (fully paid)
including borehole.
80kva generator lovol 2021 (fully paid)
What is their overall condition?
All assets are in good working condition.
Strengths?
Well established and well known in the area amongst developers and construction companies.
Great location with large ongoing construction products in the surrounding area.
Borehole sunk resulting in large savings
Manager run with competent staff force.
Weaknesses?
Lack of owner involvement.
Opportunities?
Increased marketing and larger sales force will result in greater growth.
Expand marketing and sales to areas further out.
Threats?
Economy.
What is the reason for the sale?
The owners want to persue other business interests.
Why is this a good business?
Concrete ReadyMix plants are sought after businesses with this plant being ideally located closed to large construction projects and developing residential units.
Annual Turnover Amount between R 500 thousand and R 6 million
