Buying or Selling a Business in South Africa

Category: Manufacturing
Province: Gauteng

Join a team of 8 other licensed manufacturers & distributors in South Africa by acquiring the sole manufacturing and distribution rights for the Gauteng region. This ideal "one-man" business manufactures and sells its products to a captive market. The product sells itself so no hard selling is required. The business concept is proven, their product's exceptional quality and performance has been established in the market place and existing license holders are doing well. Financing / Terms: The Buyer must arrange his/her own finance. The price includes VAT. Reason for sale: The licensor is expanding the enterprise on a national and international basis Training & Support: Full training will be provided at the Mpumalanga head office in Nelspruit. Business Description: The business is operated under license in the Gauteng region. A map will be provided to indicate the boundaries. The new owner will need to be approved. Essentially the product is manufactured, packed and distributed to a network of wholesalers and/or end users. Auxiliary equipment is also supplied to these customers. A GP of ~80% is achieved and since the business operates on a low overhead structure it is easy to control and manage with just one owner. Historical Summary: This unique product was designed specifically for industrial use and South African conditions and it maximizes tyre and vehicle performance. Initially designed for the heavy-duty industrial, transport, farming and mining equipment it has now been adapted for use in the DIY market and this product's demand for this market is growing daily. Potential for Growth: The distribution network can be increased continuously and the manufacturer can appoint sub-distributors. Additional complimentary products can be acquired and also distributed to same network. A sales team could also be employed. Special Requirements for New Owner (if applicable): Hardworking and prepared to call on clients every two to three months. INCOME STATEMENT SUMMARY (RAND). Year YEAR 1 YEAR 2 YEAR 3 Sales Rev 800,000 1,040,000 1,352,000 CoS 160,000 208,000 270,400 GP 640,000 832,000 1,081,600 Expenses 80,000 104,000 135,200 Net profit (before tax) 560,000 728,000 946,400 BUSINESS VALUATION: R YEAR 1 YEAR 2 YEAR 3 Years to pay back 2 2.5 3 SDE/annum 560,000 728,000 946,400 Goodwill value 1,120,000 1,820,000 2,839,200 Plus Inventory (stock) 50,000 65,000 84,500 Total Business Value 1,170,000 1,885,000 2,923,700 License Information: No royalties or additional license fee is payable. A Manufacture will received the following for his capital outlay:: • Formula to manufacture your own Tyre product • All equipment to manufacture your own tyre product • Gas Geyser • 100 x 25 lit raw materials Tyre Fluid • 100 x 25 lit Drum Labels • List of addresses to obtain raw materials • 100 x 500 ml Retail Bottles • 100 x 500 ml Retail Labels • Contract Agreement • Full training to manufacture Tyre Fluid • Full Training on Marketing of Tyre Fluid All that the License Holder needs is a single garage water and electrical point. We prefer to sell the formula to a individual person and not to a company of people due to the formula secretly.

Kenneth Anthony Maade

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