Fully describe the business's activities?
A business leader providing Namibians with high-tech security solutions. With over 33 years of experience in installing and maintaining top quality security systems, including alarms, CCTV, inter-communication and access control systems. With customers ranging from private homes and all sectors of corporate institutions. They also provide post-installation services to ensure your security is updated and maintained, including a 24/7 standby team available for technical emergencies.
How long has the business been established?
The company was established in 1987 by the current owner.
How does the business operate on a daily basis?
New installations, maintenance and repairs on existing systems and annual services are scheduled and tasked on a daily basis.
How are the clients attracted to the business?
Word of mouth from satisfied clients, 34 years of reputable service and advertising through the webpage.
What Advertising/Marketing is carried out?
Only the webpage is used for marketing and advertising purposes.
Does the business have any contract work?
This business receives monitoring commissions, rentals of frequencies and annual maintenance contracts.
What competition exists?
Other electronic security companies.
What are the seasonal trends?
Business always picks up from October, before the Christmas holidays.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Business slowed down initially, but recovered after the initial shock. This business obtained their Essential Services Certificate and were able to carry on as normal during lockdown.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
All VAT documentation is available to pre-approved buyers.
Are there up-to-date Management Accounts available?
Yes, up to date management accounts are available to pre-approved buyers.
What Balance Sheet and Income Statements are available?
The past 5 year Balance Sheets and Income Statements are available to pre-approved buyers.
What percentage of the business is cash/credit?
All invoices are due within 30 days. New projects require a 60% deposit and full payment is required after 7 days of completion of project. The few clients that come to the office usually pay cash.
What is the age analysis of the debtors book?
The Age Analysis of Debtors are 30 days net + 10% discount if settled within 14 days.
How could the profitability of the business be improved?
Additional staff to take on further incoming work. Further corporate maintenance agreements and advertising.
Is Seller finance available and for what amount?
No Seller Finance is available.
What is the total staff complement?
- The owner is a qualified technician. - 2 x Inhouse trained technicians + 1 x Learner Technician. They receive in house training on the business systems. - 2 x General staff: They help with the physical labour required on some installations such as digging trenches, gluing, laying & pulling cables. - 1 x PA: Still under management training.
Give a breakdown of staff/ functions/ length of service?
A full breakdown of staff can be provided to pre-approved buyers during the due diligence stage.
Do any receive special perks or incentives?
The senior technician receives low rental accommodation. The PA is currently on reduced office hours as required. Senior technicians receive a cell phone allowance. Employees are paid a 13th performance linked bonus.
Do any have management potential?
The current PA is being currently trained up to a management level.
How involved is the Owner in running the business?
The owner is fully involved in the business.
When does the current lease end?
The owner is prepared to rent out the office property (2 buildings on property) at a rental amount of N$ 25,000.00 /month for 1 year. The property is up for sale at a market related price close to the valuated price of N$ 3,200,000.00, whereby first right of refusal will be given to the tenant. Should the property then be a viable option for the buyer it will be sold at valuation of an independent valuator agreed by both parties.
Is there an option of renewal & what period?
A rental contract is only possible for 1 year.
What is the annual escalation %?
There is no rental escalation annually.
What are the trading hours?
The trading hours are Monday to Friday 08h00-13h00; 14h00-17h00. This excludes the teams that are on emergency standby 24/7. Only 1 Technician is on duty weekends and public holidays with a rotation basis. Most client emergencies are handled on the phone. There are very few actual physical call outs.
What is the square meters of the business?
The office space is 108m2 and storage space is 54m2.
Do you require a licence?
A fitness license from City of Whk which is renewable annually. Two CRAN license's renewal annually at N$ N$ 14,472.00.
What lease deposit and/or other surety is required?
One months rent is required.
What are the main assets of the business?
The main asset of the business are the two CRAN licenses and thereafter the security and computerized systems.
Are any items not included in the sale?
No, all assets on the asset register provided are included in the sale.
What is their overall condition?
All assets are all well maintained and in good condition.
How have they been valued ?
All assets are calculated at business value: between the replacement value and the new value, depending on the conditions and repairs required.
Are they presently insured?
All assets are presently insured.
Established for over 33 years with an excellent reputation. This business has sole agencies and owns its own frequencies.
The owner is nearing retirement age and does not want to grow the business any further.
Already owning its own frequencies allows the new owner to open a response company and thereby increase his client base, Many of its corporate clients have expressed an interest in SLA contracts.
There are no threats perceived.
What is the reason for the sale?
The owner would like to retire.
Why is this a good business?
Client base and contracts are secure with a business history of over 30 years in the market. This business has its own custom designed computer software to run this business effectively and to take it to the next level. Security will always be a necessity.
What is the price plus stock and the profit?
The selling price is N$ 3,850,000.00, including a stock holding of N$ 428,886.00. The annual profit before tax is N$ 621,078.00. .