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Granite Supplier For Kitchens Bathrooms Tombstones For Sale

Gauteng, Gauteng, South Africa
Asking Price:
Sales Revenue:
Cash Flow:
Not applicable

Profitable and established business been operating successfully for more than two decades.

A unique opportunity to either enter this lucrative market, or to expand existing operations or for large Kitchen/Bathroom installers or Funeral Undertakers to integrate
to obtain the benefits from business synergy.

This granite business has a very large display of samples in their onsite showroom where customers can observe the array of granite types and colours. Granite slabs are ordered from a range of suppliers. Customers pay deposits when placing the orders onto the slab suppliers.

Cutting and finishing is done according to customers’ requirements. There are two types of customers – those private clients for whom the business also performs the final granite installations accounting for about 40% (including tombstones) of sales and the balance of about 60% from 3rd party Kitchen/Bathroom installers, using granite where their clients insist on this product.

The business has around 10 full time production staff including installers, 1x tombstone seller (also doing the engraving) - they are all well trained with good working skills.

The business has been operating for many years and is well established. The current owner started the business, and it has grown into a large independent operation.

Sellers Discretionary Earnings (SDE), also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation) based on historical trading amounts to R100,095 pm.

Offers a reasonable ROI of 23.4%. The EBPITD figure stated is after including an allowance for Landlord rent.

Included in the price of R5,125m plus VAT (if applicable) is assets to the value of about R1,140m consisting of 2 x vehicles, 1 x forklift, cutting machines, various loose workshop tools, Office/Computer Equipment, all in good condition. Also included is the website domain and Trading name. The selling price also includes stocks worth about R150,000.

Also available is the Commercial Property in a separate entity that is well located for R2.5m plus transfer fees over and above the business price of R5,125m. The size of the land is 1,100 sqm. and the buildings occupy 740 sqm. The building consists mainly of the Factory area, Offices and Storage.

The Property can be rented from the Seller, but the first preference is for an outright sale in view of the reason the Seller wanting to sell.

The owner reason to sell is that he wants to emigrate together with his family after many years starting and growing the business in a successful and reputable and profitable entity. The owner is involved on a day-to-day basis, overseeing operations, etc.

Sales and growth up to F2020 remained strong despite the difficult economic conditions. For the F2021 financial year sales dropped slightly due to business closures during Level 5 of the Covid-19 impact.

The business is set for growth with a Marketing Rep to deal with the bigger corporate customer market and potential for sales into Africa also exist but needs to be further explored with the right partnerships in place. A BBBEE-owner will also be able to bring in other business opportunities to the business in the form of semi- and national government business.

The business is well established with a good recognizable branding and repeat business having carved a niche with excellent and wide range of products.

The business is being sold as turnkey and the owner will ensure and provide adequate training.

Property Information

Real Estate:

Real Property Included

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