Leading suppliers of branded sports fitness equipment with exclusive Licenses to Reebok, Adidas and Pele brands for over 10 Years
Only supplier of these brands in South Africa
This is an incredible opportunity to buy a well established ( 20+ year old ), leading supplier of branded sports Equipment and other sports goods business, with 70% of its business being online. It is extremely profitable, operating in a niche market. It owns a number of very valuable Brands, which for purposes of the valuation, have simply been included at no value.
Sales and Profits have increased steadily over the last number of years, and the foundation has been laid, for this trend to continue onwards, as is evident in the AFS for Year Ended February 2021, where Turnover was R70.2 million with a Net profit of R 7.648 million. Stock is estimated at R18-22 million, but will be counted and valued on the effective date.
From a cash flow perspective, the purchaser needs to be aware, that in round figures, he will require to pay R16 million, being the down payment for the business, plus stock estimated at R18-22 million. The Purchaser will also have to cater for the ongoing cash flow requirements of the business, because the Seller will be collecting the debtors for his account, and paying the creditors, net amount estimated at R 15 million. One year down the line there will be a further payment for the business, of say R3 million, and a further one year later, say another R3 million, but obviously these two payments will be funded from the profits of the business.
It is the wish of the present owners to sell their loan accounts, and for the deal to be structured in that manner. This is an obvious advantage to the Purchaser, and the net value has not been taken into account in valuing the business. Continuity of operations is essential for the projections to be met and more, and for the business to thrive, and the driving force, being the present manager of the business, would be delighted to stay on and carry on running it.
Price: R22 million, payable R16 million upfront, and a further R6 million on an earn out basis over two years. Plus Stock of approximately R18-22 million. Debtors less Creditors (Estimated Net R15 million) will be collected by the Sellers for their account. Contact us for more information.