"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Well know name (>20 yrs) in the Industry supplying metal machinery components (mostly imported) required by a number of Industry Sectors / Players across KZN, but mainly within greater Durban.
In addition, they supply hand-held metal products that perform a similar process but on a smaller scale than the machines.
The purchaser of this business should have some knowledge with respect to the varying types of steel & their strengths - so as to be trained on the products by the seller & then interact with the clients (technical managers), noting that overseas suppliers assist where required.
For confidentiality purposes the actual products will only be disclosed at a much later stage of the sale process of this business.
How does the business operate on a daily basis?
Clients call/email in their requirements, stock is extracted, invoiced and delivered, as per the urgency required - which is one of the main reasons they command this market space.
Within the stock in hand, some products will be modified by the stock/metal worker on site at the business, in advance, based on normal requirements.
Stock is managed and re-ordered from overseas, with importation processed in-house, so as to ensure that clients product requirements are on hand for immediate dispatching.
Client queries, especially re - new machinery / processes are discussed with the owner to ensure new products will perform, as well as, the old components.
How are the clients attracted to the business?
The business is well known for over 20 years of supplying the various industry sectors / players. However, there is also a basic website and sales call are sometimes made.
Within their approximate 150-client base are about 50 Vendor Numbered clients ensuring their re-use, while competitors do not have their range of clients or generally do not have immediate supply capability through low stock holdings (thus losing out on possible sales).
80& of clients are KZN, with 10% each in Gauteng and across Africa.
The 3 largest Grade A clients contributed to the Co's 2026 turnover, some R 1m, R700k, R600k; while this could rise when new machinery/processes are implemented by some of the clients, as occurs every few years eg 2024 & 2025.
Is the business VAT Registered?
Yes, with all documentation on file & up to date
Are there up-to-date Management Accounts available?
Produced monthly in arrears and used in this Report, excl VAT.
Stock invoiced outwards is recorded as dispatched against that months' sales.
Sales generally occur around 40 times a month to different clients, ranging from some R1k to R50k, with the average around R15k (excl VAT).
Annual Results:2023 R6.5m, 2024 R7.3m, 2025 R7.6m, 2026 R6.3m, being a normal rolling cycle with an Av of R6.9m & thus a higher average NP than within this Report.
This Report has rounded figures for expenses, while the exact expenses (which will be lower) can be verified at a later stage against the MA's, invoices, bank statements.
This PTY will be sold through a transfer of it's shares, in order that the Vendor numbers, Import / Export licence & Bank account are retained to the benefit of the forward business with suppliers and clients.
Required stock holdings will be in the region of R1.4m to R1.7m, being assessed & paid for on takeover.
How could the profitability of the business be improved?
All it requires is younger blood to drive sales vs the sit-back and wait for orders process of the old/tired owner.
While other product lines that their client base require, could be added.
What is the total staff complement?
Owner plus 3 full-time staff.
Office manager - quotes, orders, import / export process, client interaction, invoicing R42k pm:
Assistant - other admin R7k pm
Sales, Delivery, Driver R17k pm
Stock, metal material modification (in house low-level metal working), cleaning R9k pm
Total = R75k pm or R975k pa (incl 13th cheque)
Should a buyer wish to take over the senior aspects of the R42k pm manager's position, then some R360k pa could form part of an increased NP to R2.2m pa (while still retaining some R12k pm in the expenses for another new top assistant for the junior aspects).
How involved is the Owner in running the business?
The owner is involved some 50% of the day re - overview, liaising with clients, driver, labourer working on the enhancements of metal materials pre-delivery
Premises Detail
The Purchaser could operate the business from their home or new business premises that allow for 20m2 offices, 40m2 stock room, & 20m2 metal working area.
This report has an expense provision of R60k pa (which would be added to the quoted NP should it be operated from home).
What are the main assets of the business?
Nissan NP 200 valued 2nd hand at some R150 000
Workshop machinery & office equipment of some R30k, 2nd hand pricing
All in fair working condition
What is the reason for the sale?
Retiring, but within range to be available to consult into the future.
Why is this a good business?
20 yr metal component supplier to manufacturing industries, as well as, having an ancillary product line, and some 150 clients of which 50 are Vendor numbered clients. The norm in turnovers is in the region of R6.3m-R6.5m pa, with some years (depending on new machinery/ process implementation by clients) peaking in the R7m range. The Net Profit/ EBITDA, including owners benefits for 2026, is some R1.8m, which could be R2.16m, should the purchaser be willing to carry out some senior tasks of the present Manager, who could then be replaced by an assistant.
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