How does the business operate on a daily basis?
Work is referred to the business by insurance companies and to a lesser extent obtained through walk-in clients
Vehicles are examined by an estimator on arrival and a quote is thereafter prepared and presented to the client or sent to the insurer
In the case of insurance work, assessors then inspect vehicle and sign-off the quote.
Once quotes have been accepted, the work is scheduled and the repair work starts when the vehicle is delivered

How are the clients attracted to the business?
Word of mouth and referrals from insurance companies

What Advertising/Marketing is carried out?
Local newspaper and LED advertising board in prominent position in town

Does the business have any contract work?
The company does have contractual agreements with a number of businesses to provide panel beating services.

What competition exists?
One other panelbeater in the area

What are the seasonal trends?
Weather conditions and traffic volumes (holidays, special events) play a large role in vehicle accidents

Is the business VAT Registered?
Yes

What VAT documentation is on file?
VAT returns and related information

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Annual Financial Statements to 28 February 2024 . The February 2025 are currently being compiled.

What percentage of the business is cash/credit?
Cash sales comprise up to about 5%, balance on credit. Vehicles only released once payment settled.

What is the age analysis of the debtors book?
Mostly current

How could the profitability of the business be improved?
Improve the BEE rating and thereby attract more work
Obtain better labour rates from insurances companies
Obtain better settlement discounts from suppliers

Is Seller finance available and for what amount?
No

What is the total staff complement?
40

Give a breakdown of staff/ functions/ length of service?
A list is available to qualified buyers

Do any receive special perks or incentives?
13th cheque at the end of the business year – salary increases are done every September (have ranged between 6% and 10% in recent years)

Are they on contract?
A number of the staff have contracts.

Do any have management potential?
Yes, the workshop manager (a panel beater) could move into a senior management role. The office manager (estimator as well as a trained panel beater) could run the quoting and assessments sections

How involved is the Owner in running the business?
Assumes overall responsibility for the running of the business on a day-to-day basis

Is the Owner prepared to assist with a hand-over period?
Yes, the owner is prepared to provide a new owner with an extensive hand-over

When does the current lease end?
The business property is owned by the current shareholders (it can be sold with the business - the price is not reflected in the above advertised selling price).
There are distinct advantages in owning the property to secure long-term tenure and control the lease charge.
An adjoining property is leased from Transnet and is used for parking vehicles awaiting repair etc.

Is there an option of renewal & what period?
The lease period would negotiable

What is the annual escalation %?
Negotiable

What are the trading hours?
7h30 to 17h00

What is the square meters of the business?
The workshop comprises 2,400 sqm. The upstairs section of 740 sqm comprises office space for management, finance and administration.

Who is the Owner/Landlord?
The current owners own the property

Do you require a licence?
No

What lease deposit and/or other surety is required?
One month deposit and personal sureties would be required

What are the main assets of the business?
All the assets are critical for carrying out the business. The assets of most monetary value comprise the chassis straighteners, spray booths, nitrotherm spray units, generator, compressor, and courtesy cars belonging to Brits Auto Body.
The immovable assets' book values are low but are valued at around R8m.

Are any items not included in the sale?
No

What is their overall condition?
Very good

Do any require repairing?
No

How have they been valued ?
Replacement cost of the equipment - by "YES", an equipment supplier in Johannesburg. One of their technicians, with in excess of 20 years of experience in the industry valued the assets.

Which assets are on lease/HP and with whom?
None

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?
All assets are insured

Strengths?
Very well established in the North West area with strong brand and dominant in immediate area
State of the art equipment and best practices employed
Well supported by insurers
Experienced and well trained staff
Accredited by all the popular car manufacturers
High turnover with impressive profitability levels
Property is owned and is part of the business
High barriers to entry

Weaknesses?
BEE rating needs improvement

Opportunities?
A higher BEE rating will attract additional work
Turnover and profitability can be improved further

Threats?
Current BEE rating a threat

What is the reason for the sale?
The shareholders want to retire.

Why is this a good business?
Very well established, very stable client base of key insurance companies, high turnovers, good profits and potential to grow further

What is the price plus stock and the profit?
R11 250 000 including stock (in the region of R70,000).