Fully describe the business's activities?
This business is a registered gas installer business based in Windhoek. It is an approved inspection authority that is registered with the Ministry of Labour. It specializes in the supply, installation and maintenance of medical, commercial, industrial and domestic / household gas systems and appliances. The shareholders and their team install gas systems at major hospitals, schools, hotels, workshops, universities and other institutions. It is a member of the Liquefied Petroleum Gas Safety Association of Southern Africa's(LPGSASA) and an approved inspection authority, registered with the Ministry of Labour, Republic of Namibia.
How long has the business been established?
The owners established this business 25 years ago, and have over 40 years experience of which they have shared and trained their staff with.
How are the clients attracted to the business?
Clients are attracted to this business through its established name; through it's website; through existing contracts and word of mouth. They have an excellent record to date across Namibia, Angola and beyond our borders.
What Advertising/Marketing is carried out?
Advertising is carried out through a website.
Does the business have any contract work?
Yes, this business has contract work with hospitals and the state. The business is also involved regularly with tenders. Currently the business has received signed contracts for projects to be completed in 2021 & 2022.
What competition exists?
There are currently several SME's in competition with this business.
What are the seasonal trends?
The business remains busy throughout the year with similar trends each month, although December and the beginning of January are quieter due to the festive season.
Is the business VAT Registered?
Yes, this business is VAT registered and all VAT documentation is available to buyers in the Due Diligence stage.
Are there up-to-date Management Accounts available?
Yes, there are up-to-date management accounts available and available to buyers in the Due Diligence stage.
What Balance Sheet and Income Statements are available?
The last five AFS are available to buyers in the Due Diligence stage.
What percentage of the business is cash/credit?
Approximately 50 % of the business is cash and the remainder is credit.
How could the profitability of the business be improved?
The profitability of the business can be improved by negotiating with the suppliers and sub-contractors for lower prices. Expanding their scope of work throughout Namibia and advertising their services to the general public.
What is the total staff complement?
The total amount of employees currently employed are ten. They have been with the company from 3 to 20 years.
Do any have management potential?
There are currently two managers / supervisors, one has been with the company for just under 20 years and the other just under 15 years.
How involved is the Owner in running the business?
The owner is involved in the business on a daily basis, however the supervisor runs all sites without the owners assistance. The current owner is prepared to stay on after the sale of the business for an agreed amount of time to hand over the business to the new buyer. The owner is prepared to assist the new owner thereafter and into the years to come on a consulting fee basis agreed by both parties.
When does the current lease end?
The seller of this business currently owns the premises and will rent this out to the new owner for N$15,000 p/m for 162m2. There is also option to purchase the premises from the owner at N$ 1,5 million, negotiable and or sign a lease contract with the option to buy. This property was valued at N$ 1,800,000.00.
Is there an option of renewal & what period?
The renewal of the lease is annual, however open for negotiations as mentioned above.
What is the annual escalation %?
The escalation of the lease is currently at 5%, however is open for the option to purchase and therefore negotiable..
What are the trading hours?
The current trading hours are 07:30 to 17:00, Monday to Friday.
What is the square meters of the business?
The square meters of the building warehouse is 162m2 excluding a new mezzaine floor extension on the second level which adds a further 30 to 40m2.
Do you require a licence?
This business requires the standard municipal fitness certificate and has an accredited gas installation certificate. It is a member of the Liquefied Petroleum Gas Safety Association of Southern Africa's(LPGSASA) and an approved inspection authority, registered with the Ministry of Labour, Republic of Namibia.
What lease deposit and/or other surety is required?
The deposit will be approximately one months rental.
What are the main assets of the business?
The main assets are plant, machinery & vehicles.
Are any items not included in the sale?
No items are excluded from the sale. The option of stock takeover is offered by the seller.
What is their overall condition?
All items are in good working order and do not require repairing.
How have they been valued ?
The assets have been valued at owner value.
Are they presently insured?
All assets are presently insured.
Is a full asset list on file?
Yes a full asset list is available.
This Business is an established business and specializes in its field. It has an extensive client base and a reputable name. The opposition of which there are only several businesses that have not been in their field as long as this business.
No weaknesses are perceived.
The opportunities of this business is its growing market with a significant percentage of its target market still not knowing they are out there! There are increasing sales opportunities beyond this businesses current targets. At a time when more and more strain is being placed on our electricity supplies, LP Gas is an exceptional alternative primary energy source. LP Gas boasts many advantages over electricity, including efficiency and is economical. It is widely accessible and unlike electricity, is portable allowing it to provide for a host of other uses. This is the ideal opportunity for the hands-on-buyer to grow this business from a solid foundation.
What is the reason for the sale?
The owner would like to retire and sell his 51% share holding in the business.
Why is this a good business?
In 1996 when this business opened its doors, they were the only registered company involved with industrial and medical installations. This business is strong and established ! It is important that the installation of gas and gas appliances are installed by a registered gas installer whose work complies with the industries legal standards. This is followed by regular service and maintenance which allows for an ongoing revenue after its original installation. The Seller is willing to be involved on a consultancy basis to assist with installations.
What is the price plus stock and the profit?
The 51% share holding in this business is selling for N$ 1,100,000.00. All shareholder loans will be reversed from the sale. The overdraft will be settled by the seller.