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Tyre Fitment Centre For Sale

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Fitment Centre For Sale


OVERVIEW

This franchised fitment centre is well established with opportunity for growth.  This is in a prime position with high visibility from two busy streets.  The modern equipment backed by Tyre Fitment Centre for Salethe strong brand, hi quality products, well trained staff and growth opportunity makes this an attractive business.  The profit and growth during the recession makes this a low risk investment for the right buyer.  This is a rare opportunity as fitment centres of quality and substance rarely comes on the open market.





Fitment Centre For SaleSELLING DETAILS

Selling Price

3,600,000

Turnover pm

781,664

Stock

1,200,000

Profit pm

111,987

Total Asking Price

4,800,000

Nett Assets Incl

1,200,000

MANDATE REPORT

 

1. History Background

Fully describe the business's activities

Fitment centre doing Tyres, Batteries, Shocks, Brake Discs, Wheel Alignment, Wheel Balancing.  This franchised fitment centre is well established with opportunity for growth.  This is in a prime position with high visibility from two busy streets.  The modern equipment backed by the strong brand, hi quality products, well trained staff and growth opportunity makes this an attractive business.  The profit and growth during the recession makes this a low risk investment for the right buyer.  This is a rare opportunity as fitment centres of quality and substance rarely comes on the open market.

How long has the business been established?

7.5 Years

How long has the owner had the business?

Since August 2009.

What steps are in place to solve "load shedding" problems

There are UPS in place for the computers and telephone systems

2. Present Market

How does the business operate on  a daily basis

Owner run

How are the clients attracted to the business

Word of mouth and good service.  The franchisor does national marketing and the franchisor also concludes national vendor agreements.  The prime position on two main roads also allows for walk-in customers.

What Advertising/Marketing is carried out

Only  the  advertising  done  by  the  franchisor,  the  franchisee  does  no  own advertising. The business grew by 30% purely through good service

Does the business have any contract work

The franchisor has contracts with large blue chip organisations that need to use the franchise if one exists in their area, it is also up to the franchisee to approach these businesses to ensure this happens

What competition exists

There is another fitment centre about 3 km away

What are the seasonal trends

Peak periods are Sep, Oct, Nov, Dec through to mid Jan, also all holidays specifically Jun/Jul

3. Financial

Is the business VAT Registered

Yes

What VAT documentation is on file?

All Vat returns

Are there up to date management accounts?

Yes up to end Jan 2012

What audited financials are available, income statement and or balance sheets?

Sole Proprietor - No Audited Financials, however the business is run on Spiral Soft POS system which has all the history and all transactions are accounted for. The seller also has previous owner history on turnovers for comparisons

What percentage of the business is cash/credit?

Card 70%, Cash 30%

What is the age analysis of the debtor’s book?

R60,000 on 30 Days

How could the profitability of the business be improved?

More own marketing, There are lots of businesses in the surrounding area that have not been tapped that need to be marketed to. The current seller did not market or try garner extra business. The new owner can alos expand into Exhausts and Vehicle servicing neither of which the business currently does. While the business does some CV's currently there is a market to cater for both CV's and Wheel Bearings as well. Another growth area will be to grow the Mag Wheel side which is currently largely untapped.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

16, excluding the owner and his wife.  The wife does the wages one day per week.

Staff Breakdown and length of service

3 x Sales, 2 x Wheel Alignment, 3 x Technical (shocks),

6 x Tyres, 1 x cleaner, 1 x Storeman

Do any receive special perks, bonuses or incentives?

No

Are they on contract?

MIPCO, all permanent

Do any have management potential?

Yes.  The 3 sales people are senior with one more than the rest and is a pseudo manager.  The rest of the areas have a team leader, 1 x Wheel alignment, 1 x Tyre supervisor, 1 x Senior technician

How involved  is the Owner in running the business

Hands on, but lately has structured the business as such that he has free time.

5. Premises

When does the current lease end?

September 2014

Is there an option of renewal & what period

Yes, 5 years

What is the annual escalation %?

8%

What are the trading hours?

Mon-Fri 8am-5pm, Sat 8am-1pm

What is the square meterage of the business?

800m²

Is a copy of the lease available?

Yes

Do you require a licence?

No

6. Assets

Is a full asset list on file?

Yes available and prepared for fair market value

Are any items not included in the sale?

Laptop in office belongs to owner

What is their overall condition?

Excellent

Do any require repairing?

No

How have they been valued?

Fair market / Replacement value

Which assets are on lease/HP and with whom?

N / A

What are their settlement amounts?

N / A

Will Seller settle or Buyer to take over?

N / A

Are copies of agreements available?

N / A

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths

Well established in a good busy area. The franchisor is an excellent brand. There is a large amount of potential that has not yet been tapped. Stable, well trained, reliable work force.

Weaknesses

Not enough marketing

Opportunities

More own marketing, There are lots of businesses in the surrounding area that have not been tapped that need to be marketed to. The current seller did not market or try garnering extra business.  The new owner can also expand into Exhausts and Vehicle servicing neither of which the business currently does. While the business does some CV's currently there is a market to cater for both CV's and Wheel Bearings as well. The Mag Wheel side is currently largely untapped.

Threats

None identified

 

 

8. Reason For Sale

What is the reason for the sale?

The owner’s wife prefers that they have a business where she can be actively involved, even if something might happen to her husband and find this not to be such a business.

9. Conclusion

Why is this a good business to buy?

Profitable with growth in the recession, in an excellent area, a franchise with a strong brand, excellent product range, modern equipment and capacity for more growth with the existing staff levels, staff skills, infrastructure and equipment.  The client mix is a mixture of consumer and business and no single client represents a large portion of the business thereby limiting risk to a buyer.  Add to this that fitment centres always have a demand and this is a good business to buy.


 

 

Hi-Q Franchise for sale,Tyre Fitment Centre For Sale,Business For Sale,Tire Fitment Centre For Sale,Pretoria Business For Sale

R120201
 

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