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Manufacturing Business In The Western Cape For Sale

Cape Town, Western Cape, South Africa
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The company specialize in the diagnostics, re-manufacture, repair and maintenance of equipment. The business has its origin 21 years ago (2001) when it first started to trade as a humbled small business with limited resources. The business grew steadily over the years, building relationships with their customers on a reputation of quality and reliable services. Over the past few years, the company has embarked on an ambitious repositioning program, upgrading systems and repositioned themselves in the market environment on an ongoing basis to serve much bigger clients with a more diversified range of services and products in the industry. The changes not only significantly improved the capacity, but it also allowed them much better control over the quality control of craftsmanship.


The owner/management actively analyses the labour market and recruit more qualified and quality staff so that they would be able to provide their growing customer base a better service offering and more professional support with the best value proposition and solutions they could find in the industry. Whilst this process never ends, they are confident that they have been successful and can therefore offer their customers, professionally trained staff. The company employs at this stage 8 permanent staff members on the payroll, the management consist of the owner, admin/secretary and workshop manager. The operational staff consist of 2 x artisans and 3 x qualified technicians. The business hours are a normal 8 to 5 work-week, closed on weekends and public holidays. A team are permanently on standby for serios breakdowns to support customers if it is an emergency.


The business currently re-manufacture, maintain/repair and supply a complete range of products to a large diversified number of clients in the industries. Some of these clients are in the retail, wholesale, distribution, hospitality, medical health, meat and fishing industries, to mention a few. Staff are trained at different levels of the organization, which again is in line with the company’s Skills Development plan. The company is small enough to deliver old-fashioned quality service, but is definitely big enough to meet all the requirements and demands of the industry.


Most of the current customers are approximately within a radius of 50Km from the business in the Western Cape peninsula. The business has no marketing plan or strategy from a management perspective and do not operate currently with reps or marketing agents. The new clients are currently being referred to the business by existing clients and word of mouth. The West and South Coast areas as well as the Garden Route and the rest of the Western Cape have not yet been developed at all on a marketing platform or strategy with new clients and have an enormous potential for the business to develop growth and scaling to the next level. As the business serves a specialized industry and service a large amount of Black Empowered Corporate Clients in the various sectors, to date there has never been a requirement to meet any form of B-BBEE criteria.


The current Owner/Founder has managed the business in his own way to the point where it is today, possibly one of the most successful businesses in the industry and of its kind in the Western Cape. He wants to retire after many years of hard work and realizes that to take the business to the next level, the business needs a person, who does not necessarily need technical skills, but good financial, marketing and operational knowledge in general. His proposal is that a good technical person must be appointed in his place with good management qualities as a general manager (of which there are many available in the labour market) while the new owner focus on further growth, overseeing a proper financial, marketing and operational plan/strategy to scale the business. Although he would like to retire, he is willing to stay in the business for a negational period of six to eight months after handover to guide the owner and new general manager. It is a very clear and important objective for the owner to see that the business will be successfully hand over.


Purchase Value
- Value Excluding Stock: R 9,500,000
- Trading Stock at cost price: R 8,000,000
- Total Acquisition Value: R 17,500,000

Financial Summary

- Revenue R 22,5Mill
- Gross Profit R 9,4Mill
- OPEX R 3.9Mill
- Profit (Ebitda) R 5.5Mill

Important Notes
There are certain terms and conditions and requirements in terms of our agreement with the seller under which we are restricted to introduce a potential purchaser/investor, no detailed operational/financial information will be disclosed without the required documentary and sours documents being processed according to the seller's criteria.

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