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Annual turnover

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  • Mandate: 34995
  • Added: 08 Nov 2021
  • AFS
  • 273

Franchised tyre & fitment centre

Windhoek & Central, Khomas
273
Mandate 34995
Added 08 Nov 2021
N$ 16,000,000* NAD
Stock: N$ 9,000,000
Assets: N$ 13,980,458
N$ 442,850 NAD
Ursula Gollwitzer
Aldes Namibia
Windhoek, Kleine Kuppe
Windhoek, Kleine Kuppe
Summary

Franchised tyre & fitment centre, well located, established with walkin business and auto garage relationships, offering tyres, shocks, wheel balancing and accessory fitments.

Franchised tyre & fitment centre
SELLING PRICE AFS
N$ 16,000,000* NAD
Stock: N$9,000,000
Assets: N$13,980,458
N$ 442,850 NAD
Summary

Franchised tyre & fitment centre, well located, established with walkin business and auto garage relationships, offering tyres, shocks, wheel balancing and accessory fitments.

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Fully describe the business's activities?
This business is an established franchise tyre and all round vehicle fitment centre. It offers a wide range of the world’s leading tyre brands and automotive components at excellent prices and a full and diverse range of fitment services.

How does the business operate on a daily basis?
The main stream of income is derived from everyday walk-in clients, vehicle dealers and tour companies. Thirty plus vehicles can be serviced in a single day with a turn around time of 15 minutes to 2 hours, depending on the task at hand.

How are the clients attracted to the business?
Through Franchisor advertising, world renown brands, word of mouth and repeat customers.

What Advertising/Marketing is carried out?
Advertising & marketing is carried out by the Franchisor and the well known branded groups throughout Southern Africa.

Does the business have any contract work?
No, but good relationships do exist with major motor dealers and tourist companies.

What competition exists?
There are competitors in this line of business, however competition prevents stagnation and is healthy for the economy. It allows the business to prosper and focus on service and efficiency.

What are the seasonal trends?
The business displays a consistent profitable business trend and has an excellent track record for the past decade and more.

How did the Covid-19 pandemic impact the business turnover / daily operations?
During the financial 2021 revenue dropped on average of 20%. Thereafter cash sales have picked up by 15 %, yet credit sales dropped 45%, yet are slowly improving and by Septmber 2021 they are down by 40%. As we see the tourism trade picking up again so is the revenue beginning to climb in an upward position. Profits are still expected for the 2022 financial year end.

What percentage of the business is cash/credit?
The establishment operates on a 30% cash and 70% credit.

Give a breakdown of staff/ functions/ length of service?
A full breakdown of staff, functions and length of service will be available to pre-approved buyers.

Do any receive special perks or incentives?
The sales staff receive commission and incentives.

How involved is the Owner in running the business?
Daily, however is able to leave whilst the existing managers run the business.

When does the current lease end?
Full disclosure on the lease and renewal period, escalation and square meters is available to pre-approved buyers.

What are the main assets of the business?
The main assets of the business are the plant and workshop equipment.

What is their overall condition?
All assets are in excellent condition, meeting with Franchisor standards.

Which assets are on lease/HP and with whom?
There is a vehicle on HP, details will be provided to pre-approved buyers.

Is a full asset list on file?
A full asset register is readily available on file.

Strengths?
- Very strong franchise brand, good location, established, trained staff. - Excellent support from the franchisor. - Competitive prices on world renown quality brands - Extraordinary customer service

Opportunities?
Market directly to large corporate clients with fleets.

What is the reason for the sale?
The owners have been in the tyre business for many years and are planning their retirement.

Why is this a good business?
This business is selling at a market related price Sells world renown brands Is a worldwide recognized franchise Is established in the market

What is the price plus stock and the profit?
The selling price is N$ 7,000,000.00 plus a average monthly stock holding of N$ 9,000,000.00. The net profit is N$ 5,300,000.00 EBITDA

How are Projected turnovers and profits calculated?
These are calculated on marketing trends.

What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
Franchise terms and conditions will be available to approved buyers.

What assets are included in the purchase price?
All assets on the asset register are included in the purchase price.

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AGENCY DETAILS

Aldes Namibia

4 members
26 mandates
Windhoek , Kleine Kuppe
4th Floor 1@Steps C/O Grove and Chasie street , Kleine Kuppe , Windhoek

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