Acquisition Value
R6,500,000: Business Value (Selling Price)
R 800,000: Stock (Estimated)
R7,3 Million: Total Acquisition Value (Including Stock)
Profitability
R2,400,000 Million: Net Profit (EBITDA) per Annum
R 200,000 Net Profit (EBITDA) per Month
Investment Returns (Excluding Stock)
2.7 x: PE Ratio (Price Earnings Ratio)
37%: ROI (Return on Investment)
33 x: MPB (Months’ Pay Back)
IMPORTANT NOTE
There are certain conditions and requirements in terms of our agreement with the seller under which we are restricted to introduce a potential purchaser, no detailed operational/financial information will be disclosed without the required documentary and information from a prospective purchaser being processed according to the seller's criteria.
BASIC BACKGROUND AND HISTORY OF THE BUSINESS
The business was established nearly 30 years ago in the Western Cape. After many successful years in the business, the current owner wants to retire from the industry. He shall be available for as long as it takes for the new owner to settle in and secure a seamless transition and handover.
The business has grown in revenue by an average of more than 31% over the past three financial years. The gross profit margin of more than 35% contributes to a very healthy net profit (EBITDA) of more than 15% after all the operational expenses has been settled. The growth can mainly be attributed due to the development and growth in the residential property market in the Western Cape, West Coast area, Southern Cape and surrounding areas.
The business supplies a complete spectrum of garage doors and access control to clients, from entry level to architectural designed garage doors. The focus is on installations in residential developments, heavy duty commercial doors and distribution to smaller installers in the retail market. Some of the largest and most established property developments count among the clients. Stock quantities are analyzed and planned, based on prepaid orders from clients before distributing and installing the products.
The business has a very good relationship with all the local manufacturers in South Africa and import products from manufacturers abroad with long-term supply agreements in place in certain cases. The company consist of multiple installation teams capable of handling standard installations to more complex ones in the garage door market. The technical and office management are key employees in the business who handle the day to day running of the business.
A comprehensive financial overview was carried out over the financial system, latest Annual Financial Statements and Management Accounts. The relevant source documents were confirmed against operational expenditure. The proposed price valuation was calculated against industry benchmarks and considering that the business has a good historical growth trend and successfully well-established over so many years.
