Over the past seven years, the business has established itself with five stores, of which two are located in the Eastern and three in the Northern suburbs of Pretoria. With an excellent service offering, exceptional track record, well-trained, friendly staff and competitive prices for the extensive product ranges, the business is set to grow rapidly in the future. After many successful years in industry, the owner decided to exit the business in Gauteng and relocate to the coast. He will be available to remain in the business after it has been handed over to the new owner for a negotiable period and to secure a seamless transition and handover.
There are ten staff members, of which most have good experience in the industry and are target oriented to meet the requirements of the market environment and promote positive growth in the business. The business offers a complete range of pet necessities, which meets the demands of the market in all the categories. The extensive pet food section contains all the well-known brand names at very competitive prices. The pet toys and treats section as well as pet cages, collars and pet cushions are very popular.
The clientele consists of a well-balance composition of age and income groups from across Pretoria and surrounding areas. The business generates the growth of clients mainly through word of mouth, social media and good exposure in the different neighborhood's in the suburbs. The growth potential in the industry and people's positive attitude towards pets and the growing pet industry, promotes the potential growth to the business.
A comprehensive financial overview was carried out and the relevant source documents were confirmed against operational revenue and expenditure. The proposed price valuation was calculated against industry benchmarks and considering that the business has a good historical growth trend and very good potential to grow to the next level.
Acquisition Value
R6,500,000: Business Value (Selling Price)
R1,600,000: Trading Stock (Estimated)
R8,100,000: Total
Profitability
R2,617,081: Net Profit (EBITDA) per Annum
R 218,090: Net Profit (EBITDA) per Month
Investment Returns
2.5 x:PE Ratio (Price Earnings Ratio, Before Tax)
40%: ROI (Return on Investment)
30 x: MPB (Months’ Pay Back)
IMPORTANT NOTE
There are certain terms and conditions and requirements in terms of our agreement with the seller under which we are restricted to introduce to a potential purchaser/investor, no detailed operational/financial information will be disclosed without the required documentary and source documents being processed according to the seller's criteria.
