Fully describe the business's activities?
A family founded business over 60 years ago, focusing on Sales, Engineering and Service on four main product lines for Water Pumping, Bulk Storage, Water Heating and PV Electric Solar solutions both on-and off-grid, supported by Backup Generators.
How are the clients attracted to the business?
Customer satisfaction created a loyal customer base and word of mouth endorsement drove new business acquisition. Machine capacity in the workshop is a further factor attracting clients to the business. Quality products and service offering has been a key differentiator for the company. Their team is skilled and experienced.
Does the business have any contract work?
Yes, this business has contracts in place. The customer order book and pipeline will be disclosed as part of the due diligence process.
What is the total staff complement?
This business has 42 permanent employees and 36 temporary workers. The number of temporary workers is currently higher than usual due to additional capacity requirements needed for a large renewable energy contract.
When does the current lease end?
The premises are renewed on an annual basis. It is unlikely that the premises would change in the near future as the relationship with the landlord is excellent. The annual escalation is subject to negotiation.
What are the main assets of the business?
The main assets of the business is the machinery. A full asset register will be disclosed as part of the due diligence process.
Well established business with a reputation for engineering excellence. High quality machinery in excellent working order. Years of reverse engineering intellectual property (drawings, manufacturing processes, know-how). Quality work is produced by competent and trained staff, which ensures that there is solid monthly revenue.
Restructuring operation to meet current market needs will boost revenue. The Namibian Government is focusing on becoming a energy sustainable country by specifically focusing on renewable energy. This is further supported with the Namibian Government's focus on Green Hydrogen. Create new markets.
Macro economic issues may dampen economic activity to detriment of capital intensive heavy engineering industries. Cheaper imports may create substitute effect in industry. Rising inflation and interest rates. Supply chain challenges.
What is the reason for the sale?
The owners wish to exit the business. One of the investors being a Private Equity Fund is in the process of exiting its portfolio investments.
Why is this a good business?
With the unfolding energy crisis renewable energies have grown in importance over the years and now form a core component of this business. High quality asset base; strong reputation which can be a springboard into new clients. Many years of experience and long standing customer relationships in the power generation industry has placed the company in a favorable position. The tried and tested methods of operations have ensured that the quality of work is of the highest standards.
What is the price plus stock and the profit?
The selling price of this business is N$ 60,000,000.00 including an average monthly stock holding of N$ 7,740,000.00. The EBITDA amounted to N$ 8,596,554.00