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  • Mandate: 30462
  • Added: 16 Jan 2024
  • AFS
  • 1010

Well established business in automotive industry

Windhoek & Central, Windhoek & Central
Mandate 30462
Added 16 Jan 2024
N$ 9,800,000* NAD
Stock: N$ 1,200,000
Assets: N$ 580,000
N$ 306,796 NAD
Ferdi van Greunen
Aldes Namibia
Windhoek, Kleine Kuppe
Windhoek, Kleine Kuppe

Well known and well established business in automotive industry for sale

Well established business in automotive industry
N$ 9,800,000* NAD
Stock: N$1,200,000
Assets: N$580,000
N$ 306,796 NAD

Well known and well established business in automotive industry for sale

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please supply us with your details below

Fully describe the business's activities?
This is a well-established business in the automotive industry, with a well-known brand and a good name in the industry. The business is perfectly located for its customers and also does off-site sales and services. The business imports 80% directly from the factory overseas and therefore owns the whole value chain.

How long has the business been established?
The business has been in existence since 2003. It moved to its current premises in 2008.

How long has the owner had the business?
The current owners started the business, so since 2003.

How does the business operate on a daily basis?
One of the owners opens the business in the mornings. Clients come to the premises and the business vehicles do off site sales and services.

How are the clients attracted to the business?
The business has a good visual location, it has a very good name in the industry and it is contracted by all the major insurance companies in Namibia. The business also has one courtesy vehicle which can be used by customers.

What Advertising/Marketing is carried out?
Limited marketing is done, the business is well known with a well established and recurring client base. The business uses branded vehicles and visible signage outside the business which attracts the buyers.

Does the business have any contract work?
The business is contracted with all the major insurance companies in Namibia to do insurance claims.

What competition exists?
There are two main competitors in the market, but all of them have been in business for many years and the market is stable regarding competition.

What are the seasonal trends?
Business is fairly stable throughout the year with no real seasonality.

Is the business VAT Registered?
Yes and all VAT returns will be made available during the due diligence process.

Are there up-to-date Management Accounts available?
Management Accounts as at 31 October 2023 available.

What Balance Sheet and Income Statements are available?
The latest Annual Financial Statements (Feb 2023) are available.

What percentage of the business is cash/credit?
Most cash sales are generated by excess payment clients have to make with insurance claims. In total cash is around 10% and credit 90%. Customer profile is mostly big businesses - the risk for bad debt is very low.

What is the age analysis of the debtors book?
30 Days +- 70%
Current +- 25%

How could the profitability of the business be improved?
There are scope to expand the business footprint.

What is the total staff complement?
The total current staff complement is 10 employees including the owners. The staff turnover is very low; many of the staff members have been with the business for over 5 years and their key staff members for more than 10 years.

Do any receive special perks or incentives?
Sales Staff get a fuel subsidy.

Are they on contract?
Yes, employment agreements are in place.

Do any have management potential?

How involved is the Owner in running the business?
The owners are involved on a day to day basis, however all processes and procedures are in place for the smooth running of the business.

When does the current lease end?
The owners of the business are also the owners of the properties. A long lease will be offered to the buyer of the business or the buyer can also acquire the properties at the latest valuation.

Is there an option of renewal & what period?
Yes, Negotiable

What is the annual escalation %?
10% per annum. (negotiable)

What are the trading hours?
The business hours are Monday to Friday 07h30 to 17h00.

What is the square meters of the business?
333 sqm

Do you require a licence?
Yes, all licences are in place and the products comply with all internationally required standards.

What lease deposit and/or other surety is required?
One month’s rent in advance.

What are the main assets of the business?
Owner provided us with a full asset list which includes all office furniture, workshop equipment and tools, generator and delivery vehicles.

What is their overall condition?
All in good working order

How have they been valued ?
Vehicles are valued at insurance replacement values.
Owners provided us with a value for the other assets.

Which assets are on lease/HP and with whom?

Are they presently insured?
Comprehensive business insurance.

Details of the Assets
All business assets are included in the sale. The assets are in a good working condition and no HP or any other loans are included in the sale.

The business premises are accessible with enough parking for clients. It is a good and visible spot in town. It has a very good name in the industry and are contracted in with all the major insurance companies. The business has been in existence for more than 20 years. It imports directly from the international factory to ensure maximum profit margins.

The owners are involved on a day to day basis so a new owner cannot afford to let service standards slip.

The wholesale business is fairly unknown and the existing smart partnerships with service providers in other towns can be expanded. It is Realistic to expect that the business will indeed achieve growth over the next 2 to 3 years.

Service levels will have to be maintained to ensure that the strength of the brand is maintained.

What is the reason for the sale?
The owners have been in the industry for many years and they are looking at retiring.

Why is this a good business?
This is a very well established, very well known business in this industry. The business owns the value chain from the factory door to the end customer, ensuring profit margin and lowering the business risks. It is not a very complicated business and apart from the established processes and procedures, it offers further growth and upside potential. A great buy for any serious investor.

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Windhoek & Central

Aldes Namibia

1 members
3 mandates
Windhoek , Kleine Kuppe
Kleine Kuppe , Kleine Kuppe , Windhoek

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