Business Summary
Selling Price: R 9,5 M
Total Sales Annual: R 21,9 M
Net Profit Annual: R 3,4 M
The company was founded more than 35 years ago and has expanded over the period with four exclusive distribution areas from two distribution depots. The company distribute, gas and all related products such as; welding equipment, welding machines, safety equipment, welding tools, abrasives products, welding rods and grinding discs to the industrial, manufacturing sectors and engineering workshops. The company distributes all types of industrial gasses on behalf of one of the largest gas producers in the world in terms of an exclusive agreement. The business consists of two distribution depots which supply products to four allocated exclusive industrial areas and which include the core of the industrial hub of Johannesburg and surrounding areas.
The diverse product range varies from standard consumables to highly specialized equipment imported from USA & China. Their customer base is small to medium manufacturing and engineering companies whom they service daily with all the types of gas, consumables and equipment. The two depots enable them to react within 24 hours to any need or requirement from their customers and they have built a strong reputation of quality and punctual service delivery. Therefore, stock levels and mitigating risk of stock losses are controlled by an integrated control system with simplistic checks and balances.
The business has grown over the past three years with an average revenue of over 25% per annum. The net profit (EBITDA) before tax grew over the same period by more than 34%. The owner has invested in an ambitious repositioning strategy of both depots and the above growth in revenue and net profit can be attributed directly to the restructuring strategy and industry growth in the industrial sector and manufacturing market.
The owner wants to retire after all these years in the industry, but is willing to stay in the business for some time after handing over the business. Any prospective buyer will have the option to purchase the going concern or alternatively 100% shares in the company.
The potential purchaser needs to meet the following criteria:
• Provide verifiable proof of the total purchase price or total unencumbered cash
available;
• Preference will be given to a prospective purchaser with the total purchase price
available;
• Complete a Non-Disclosure Agreement and attach proof of above documentation;
• The seller will have the right to accept or reject the above documentation;
• Upon receipt of instruction from the seller a compulsory introduction meeting shall be
arrange before any information will be disclosed.
There are certain terms and conditions and requirements in terms of our agreement with the seller under which we are restricted. No detailed operational/financial information will be disclosed without the required documentary and sours documents being processed according to the seller's criteria.
