"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
A well-known printing company offering litho & digital printing service to it's loyal customers predominantly in Durban. Providing high quality printing, superior service, & competitive pricing to meet every client's needs, with a mixture of older & high-tech machinery to ensure the most competitive production runs.
They produce their clients internal & external documentation requirements, whether single page, brochure, or booklet format, and whether coated, laminated, punched or bound.
How long has the business been established?
The business was established by the current owner in 2002.
How does the business operate on a daily basis?
Existing clients or those activated through the good website, sales manager, or referrals, receive a quote before the order is handed to the general manager, then factory manager. Delivery is mainly via the Co's driver in a new Nissan NP 200.
The area only experiences loadshedding from level 7 upwards (which doesn't occur) & hardly has electrical failures - so only the UPS's for the computers are in place.
Does the business have any contract work?
No contract work, however the business has plenty of repeat business, with good clients of good standing.
What competition exists?
There are other businesses carrying out the same type of work, however, this business is well established and boasts loyal clientele.
What are the seasonal trends?
Business is steady throughout the year. January being the most quiet.
Is the business VAT Registered?
Yes, this " CC " is VAT registered.
Such a clean Co, that it is likely a buyer will take over the Membership (& keep the same Bank Acc for client payments), but also possible to rather buy the business as a Going Concern out of the CC.
What VAT documentation is on file?
VAT documentation is available and up to date, as processed by the inhouse bookkeeper
Are there up-to-date Management Accounts available?
Up to date management accounts are available at the end of each month showing full detail for each month, as well as, annual progression against targets - VS THIS REPORT WHERE EVERYTHING apart from income, IS AVERAGED FROM THE AFS (ie MA's will show monthly variances & detail of Cost Of Sales & Expenses).
What Balance Sheet and Income Statements are available?
Past Annual Financial Statements are available, with all income & expenses clearly shown & no cash therein. 2023 AFS were used in this Report with 2024 MA's showing better results.
The turnovers rise each year (including 2024), as does the Net Profit / Owners Discretionary Income (i.e. NP of the business plus provable owner benefits).
The buyer has the choice of buying the Sellers membership in the CC (advised - as a clean CC being sold by a nice gent, which will make the transfer & client interactions an easy process) or as a going concern out of the CC.
What percentage of the business is cash/credit?
Approx. 85% of business is on 30-day account
Approx. 15% of business is cash - this is generally walk-in or once-off clients.
What is the age analysis of the debtors book?
Most clients pay on time. The debtors book normally sits at 45 days.
How could the profitability of the business be improved?
Profitability could be improved by the owner also driving new business.
What is the total staff complement?
The total staff compliment is 16 excluding the owner.
5 Managers - General, Sales, Accounts, Factory, Digital Studio
9 other staff including a Buyer & Driver
Are they on contract?
All employees have employment contracts in place and are all permanently employed.
Do any have management potential?
Two of the managers manage the business when the owner is not there, which could be on a more continual basis if absolutely required.
How involved is the Owner in running the business?
The owner is a lovely gent, that works from around 10-15h00, & is mainly there for clarifying that the managers are progessing well, look over the bookkeepers' figures, process efts, & call on clients once in a while.
When does the current lease end?
The current lease is due to expire February 2026. Presently R27 000pm excl VAT, with an 8% escalation, & 3 year renewal option.
The unit size is 367m², the size of the mezzanine floor is 86m² = total space is 453m²
The premises are within a nice, secure complex in an Outer-West Industrial area close to two main roads/highways.
What are the trading hours?
Working hours are Monday - Friday 7:30 - 16:30
Closed on Weekends and public holidays.
What are the main assets of the business?
The main assets are the Litho & digital printing machines, computers & delivery vehicle. with all being in working order & sufficient for the present turnovers and more.
Their value on a 2nd hand basis would be around R1m.
The only vehicle is a Nissan NP 200 acquired in Nov 2023 for R233k, with repayments of R4 800 pm until Nov 2029.
Strengths?
This business is well-known in the industry and has an excellent reputation. They boast loyal clientele and steadily growing business.
The machinery & staff are good & capable of producing more turnover
Weaknesses?
The owner is not pushing the business as he concentrates on his retirement home construction.
Opportunities?
There is still room for growth and the possibility of offering a more diverse service.
Threats?
That competitors try steal their client base, which is unlikely due to their historic dealings
What is the reason for the sale?
The owner wishes to retire.
Why is this a good business?
Annually rising turnovers (shown as R7m in the Report & likely to reach R7.5m for 2024 yr-end) & Net Profits (including the owners benefits, shown as R1m in the Report.
Good managers in place that can manage the business while the owner is away.
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