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On offer is a reputable and profitable customer orientated office furniture business opportunity situated in Gauteng who sells a wide range of new and quality used office furniture as well as custom made furniture.
Since their humble beginnings 11 years ago the business has grown from strength to strength as one of the leading suppliers of high-quality furniture in SA.
The only reason why this well managed and established business opportunity came available, is that the Owners want to immigrate.
It has currently a Customer base of nearly 7000 and proudly delivers quality service to their Customers. The Owners have focused from the very beginning on its core values of customer service, quality, affordability and uniqueness to gain the trust of their customers.
It has a stunning rented 2000 square meter warehouse as well as a further two showrooms for customer`s convenience on their own nearby premises. This offers customers a wide range of the best quality and most affordable new and used office furniture and custom made, both locally and internationally crafted to suit your office layout and design.
The used office furniture passed a strict quality control to ensure that while it may be pre-owned office furniture, it will still fit into any office and look great. The selection of used office furniture is wide and varied giving customers plenty to choose from, to suit their needs and budget.
Trading Stock includes reception counters, coffee tables, to soft seating and couches, to high back/medium back and visitors chairs, cluster desks, executive furniture, veneer and melamine furniture items, bulk filers, round conference tables, small and large and very large boardroom tables, filing cabinets, roller door cabinets, top retrieval cabinets, credenzas, pedestals and various other items. Samples of various colours and fabric are also available to view.
The business supplies also an optional office furniture delivery and installation service in the whole Pretoria and Johannesburg areas. Furthermore, it also provides office furniture on credit (T&C’s) and can provide office furniture on rental and will gladly assist with interior design and space planning.
This well-established office furniture business is serious about becoming the preferred office furniture supplier for a wide range of customers from industrial, consumer and Government departments and entities and looking forward to a long-term relationship and mutually beneficial business.
The business is therefore classified in the following structures:
*B2B (business to business) – The Furniture ranges are of such quality and affordable price it is convenient for retailers to buy directly from them to re-sell.
*B2C (business to consumer) – Walk in Customers visits the business premises where their highly skilled sales staff assist them, which assures advertising through “word by mouth”.
*B2G (business to government) – The business is a B-BBEE Level 2 Contributor and is registered on a large number of Government databases as Vendor to supply, deliver & install office furniture. Constant tender request for quotations on a regular basis is received and they have delivered already to various departments.
Sellers Discretionary Earnings, also known as EBPITD (Earnings before Proprietors Compensation, Interest, Tax and Depreciation) amounts to R2,328,000 for the 2020 financial year, resulting in an excellent ROI of 24%.
The calculated EBPITD of R2,328,000 per annum is also stated after a market related lease rental provision charge of R60,000 per month is added to the Operating Expenses for two warehouses on another owned premise (in a different legal entity). The owned property can also be rented from the Owner or rented with an option to purchase.
Despite the difficult economic conditions, the growth in sales remain strong and increased for F2019 and F2020 with 19.3% and 26.3% respectively.
The Gross Profit (G/P) for F2018, F2019 and F2020 was 47%, 50.6% and 47.6% respectively which represents an average of 48.8% for the mentioned three financial years.
The selling price of this reputable Office Furniture Business on offer is R6,700,000 PLUS trading stock of approx. R3,000,000 and includes Movable Assets(Delivery Vehicles also included) valued at R1,600,000 (All plus VAT - if applicable) Detailed financial statements, management accounts, etc. are available only to serious buyers who have the required funding available.
Opportunities for further growth is to start-up an own manufacturing plant. With their special skills and craftsmanship, the business can enhance a competitive market in supplying their own Proudly South African Brand.
As an added advantage the Owners also offer a 2.5 hectare upgraded small holding about 2 km from the current rented premises for R10,500,000 with inter alia two large warehouses, workshops, office, etc. also being used for additional storage.
Property offers the following features with good expansion possibilities, additional third part rental incomes and good capital growth in a well-located area:
*Two Warehouses (1314 square meter each) with double storey storage, 4 x tool rooms, spray booth, workshops, office, sleeping quarters for employees with full ablution facilities. This warehouse is being used in addition to the rented warehouse on the rented business premises for storage.
*Stunning small holding for a family, for entertainment, close to all major routes. Ideal business with ample space for further expansion. At the bottom of the property is a bird-haven, a large dam with a beautiful deck including built-in braai to enjoy sun-downs. Property surrounded by electrical fence and high walls.
– A large modern house (539 square meter) with a huge open plan kitchen with scullery and pantry, large open plan TV and dining room with two built in braai’s, a Bar, a BOMA area and the pool area.
-A smaller modern house (120 square meters) ideal for business use and storerooms.
*A smaller flat near the warehouse.
*Fully equipped Koi ponds and breeding dams.
*Fenced and veggie garden.
An excellent opportunity to acquire a well-established business with great profitability and ample opportunity for further growth.
For further information, please contact the listed Broker.
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