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Building, Construction and Allied services

 

PROFILE    
Description:   
  • The business was acquired in June 2005 and at the time service was limited to the maintenance of PMC mine houses.
  • The offering was extended and occupied premises consisting of 226m2 offices on a 2545m2 property with all the required infrastructure for a multi-disciplinary construction company.
  • Workforce previously consisted of 9 well qualified and experienced departments and covered these services:
    Plumbing, Building, Painting, Electrical, Carpentry, Fabrication, Fencing, Bore-Hole Drilling and Mechanical Vehicle Maintenance).
    They also engaged contractors drilling for water - after which they would install the pump and water piping to extract the water.
  • To Co-ordinate and manage these departments there was a skilled team of managers and a foreman with a fleet of 18 vehicles.
Industry / Sector:    Construction - Building Services
LOCATION    
State / Province:    Limpopo RSA
City / Town:    Phalaborwa
Location / Area:    Light Industrial area close to CBD
Portability:    The business rents the premises from an associate entity and the property is also for sale as a separate transaction.
PRICE    
Asking Price:    R 1 195 000
Conditions:    The asking price is negotiable and includes stock on hand as well as all operating & movable assets
FINANCIAL & OPERATING INFORMATION    
Turnover:    R 324 316 per month
Profit:    R 37 885 per month
Annual Return:    38 % per annum
No. of Staff:    18
Year Established:    2005
Legal Persona:    Close Corporation
Other Information:     
  OVERVIEW  
  • The business was acquired in June 2005 and at the time, service was limited to the maintenance of PMC mine houses.
  • The offering was extended and occupied premises consisting of 226m2 offices on a 2545m2 property, with all the required infrastructure for a multi-disciplinary construction company.
  • Workforce previously consisted of 9 well qualified and experienced departments and covered these services:
    Plumbing, Building, Painting, Electrical, Carpentry, Fabrication, Fencing, Bore-Hole Drilling and Mechanical Vehicle Maintenance). They also engaged contractors drilling for water - after which they would install the pump and water piping to extract the water.
  • To Co-ordinate and manage these departments there was a skilled team of managers and aforeman with a fleet of 18 vehicles.
  • It was a lucrative market, being the sole supplier of these services. That stopped suddenly as the mine disposed all its houses to its employees, resulting in homeowners ignoring preventative maintenance and only did breakdown maintenance at cheap rates provided by unskilled people.
  • The Business had to adapt its main business from Domestic Maintenance to Building and Maintenance. They then concentrated on building domestic houses and Commercial Buildings, but provided Building Maintenance Services as an add-on and not as a main service.
  • They tendered for and fortunately secured a few major contracts including some non-cost effective out of two projects (R20 000-R2.2 million), but when these jobs were completed, they then continued with Domestic Maintenance, House Renovations and building swimming pools.
  • The recession has forced the business to down-scale and some key competent staff were retrenched.
  DISCLAIMER REGARDING INFORMATION  
  • No representation or warranty, express or implied, is given as to the accuracy or completeness of the contents of this profile.
  • The only representations and warranties that will be made are those that may eventually be included in a definitive agreement to the proposed sale of the vendors interests in the business.
  • Neither this profile nor any of the information contained in it shall form the basis of any contract for such sale, nor does it constitute an offer, invitation or inducement to purchase or acquire any shares in the business or any interest in it.
  GENERAL INFORMATION  
  • The total operational requirements reduced due to the economy and thus personnel and equipment have also reduced.
  • Nevertheless, the Business continues to provide a very good service to the greater Phalaborwa area
  • The business rents the premises from an associate company, so a lease can be negotiated, but this property is also for sale as a separate transaction.
  DETAILS OF SALE/RENT OF PROPERTY  
The potential buyer of the business, may consider operating from the same location by purchasing the property.

  FINANCIAL INFORMATION  
Detailed financials will be made available to approved buyers and the seller/s can verify all trading.
The financial information reflected above is based on turnover (excl VAT) and EBITDA (before owners costs), extracted from the audited financials for the year ended 28th February 2018.

  POTENTIAL  

  • The business still has a very good capability to do ANY building maintenance and repair work, due to its experienced work force.
  • This is a great opportunity for a BBEEE service company/entrepreneur to take over this well established business with a good track record, who will be able to secure, or have acces to local, provincial or central Government contracts.
  REASON FOR SELLING  
One of the key partners passed away a few years ago and it has been difficult for the remaining partner to keep the operation going on his own.
The business has been operating for 13 years and the business shall have to start replacing vehicles and machinery, but they do not have the resources that need a capital injection.

  PROOF OF FUNDING REQUIREMENT  
Interested parties MUST be able to demonstrate that they have access to the required funds to finance a cash transaction purchase.
In terms of the Broker mandate, the Seller will not entertain any discussions, or consent to provide any details or documentation; or accept any offer unless you first meet this criteria. The Potential Buyer will need to provide proof of these financial requirements in your initial enquiry.
FULL DETAILS WILL BE PROVIDED BY THE APPOINTED BROKER SUBJECT TO SIGNING A CONFIDENTIALITY AGREEMENT (NDA).
 

 

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Record ID: 2768
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