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Agency Of Medical Equipment Business For Sale

Sandton, Gauteng
Asking Price:
R16,000,000 Inventory / Stock included
Sales Revenue:
R46,000,000
Cash Flow:
R3,600,000

The business is primarily an Agency driven concern representing some of the most reputable global manufacturers in Southern Africa. Products sold include A – Z requirements in a focused segment within the larger medical field. Larger products sold are of a capital nature at around R500,000 per item down to inexpensive consumables.
There are around 6000 medical professionals in this discipline in the country and global research shows that the average spent per professional is around US$500/month. This translates to a potential annual market of R500m of which the company serviced R46m in the 2018 Financial Year.

The business originated in 1989 but was only operating as a registered entity since 1994.
The property from where it currently operates has been acquired in 1997 and offers an A grade working environment.
A Coastal Branch has been established in 1998 which contributes healthily to the profits and success of the overall business.

The traditional promotional techniques involve one-on-one sales by representatives and internal sales representatives direct to the end user.
Both the Johannesburg and Cape Town branches employ dedicated sales representatives responsible for sales.

The business also recently acquired a company for the purpose of the creation of an internet based electronic shop from where products can be sold electronically. This is still a work in progress.

Property information

Real Estate:

Lease

Lease Terms:

Negotiable. As the buildings belong to the seller the terms of the leases can be negotiated.

Leasehold Rent:

70,000 per month per annum

Location:

Two branches in Johannesburg and Cape Town. The facilities in Johannesburg offers A grade working condition and has been tailor built for the business. It offers space and capacity for expansion.
The buildings belong to the seller and the purchaser has the option to acquire, rent or move the business to alternative premises.

Premises Details:

1200m2 warehousing and office floor space with double volume capacity. Estimated market value is R14m and Cape Town based Warehouse valued at R2,5m

Business Operation

Expansion Potential:

Enormous growth opportunities exist in the sales of consumables and the creation of an electronic shop can contribute majorly in growing this segment.

The business is representing some of the most sought-after agency representations available and many of these are totally underdeveloped and underrepresented.

A large opportunity to deliver turn-key projects containing multiple products exist but the business requires high level BEE rating to succeed.

When the business reaches infrastructural maturity and market penetration it can consider diversification into alternative segments in the larger medical industry.

Competition / Market:

- The seller is operating in the upper end market segment where quality, durability and technology are central to the customer’s decision-making process. There are three competitors to the Selling company in this category; one very large leading supplier, a same sized competitor and a relatively new entrant.
- A second category competitor is focused on price and is supplying low end products at low prices.

Reasons for selling:

The Seller is interested in emigrating and to join children and grandchildren already abroad.

Trading hours:

Monday – Friday 08:30 – 17:00

Employees:
The Johannesburg office employ 23 persons: 1 x General Manager. 6 ales representatives plus 2 servicing government departments. 7 technicians offering technical repairs and maintenance services. 1 x Financial, Debtors, receptionist and driver. 2 x installation specialists. The Coastal office employ 7 employees: 1 x manager (with 25% shareholding). 1 x Genera Admin. 2 x Technical services. 2 x Sales.
Years established:
30 Years

Other Information

Support & training:

Negotiable support and handover conditions.

Furniture / Fixtures value:
R6,000,000
Inventory / Stock value:
R10,000,000 - included in the asking price
Relocatable:
This business can be relocated.

Contact Information

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