"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
This business is a well-established and well known in the food processing sector.
It is a work-from-home business that has been in operation for over 20 years.
The business offers full project management in terms of implementing long shelf-
life food solutions for retailers, butcheries and more.
It imports and sells CPET trays and tubs which can be used to cook and bake in ovens. These trays enable packing of food in sterilization and pasteurization processes.
The business imports tray sealers and fill-seal automatic machines from Europe and Taiwan.
It services the machines with experienced local technicians.
It supplies sealing film for food packaging. All products are fully certified internationally and locally.
It also offers clear PET packaging made in Italy. These items are intended for packing ambient, cold and frozen products.
It also imports from the UK, and sells locally, bio-degradable and compostable food packaging
How long has the business been established?
Since 2001
How long has the owner had the business?
22 years
How does the business operate on a daily basis?
It operates from 9.00 to 16.00 during weekdays
How are the clients attracted to the business?
Initially. the business participated in food and packaging exhibitions and advertised in the relevant sector magazines.
More recently, more emphasis has been placed on digital marketing and most customers are now attracted through internet searches.
The return trade from the existing customer base is also an important source of business.
What Advertising/Marketing is carried out?
Current digital advertising initiatives target specific markets, such as butcheries and retail stores that have butchery / meat processing departments.
Does the business have any contract work?
No
What competition exists?
In terms of packaging machines and sealing film, the business competes as a small entity in the world of giants.
In CPET packaging, which is a very up-market product, the business dominates this market in South Africa.
What are the seasonal trends?
The demand for food is typically stable so there are no signficant seasonal trends
Is the business VAT Registered?
Yes
What VAT documentation is on file?
VAT compliance certificates and monthly VAT returns
Are there up-to-date Management Accounts available?
No but these can be requested
What Balance Sheet and Income Statements are available?
The year ended February 2023
What percentage of the business is cash/credit?
95% of sales are paid in full before delivery.
How could the profitability of the business be improved?
Increasing the portfolio of products and services
Employing sales representatives.
Is Seller finance available and for what amount?
No
What is the total staff complement?
The business comprises three staff.
- the owner
- the personal assistant (who handles bookkeeping, acts as a sales lady for certain lines and performs secretarial duties)
- the cleaner / helper.
Do any receive special perks or incentives?
Xmas bonuses are paid
The personal assistant is paid a travel allowance
Are they on contract?
No
Do any have management potential?
No
How involved is the Owner in running the business?
Totally involved
Does the business rent premises?
No, the business is carried out from the owner's premises. The business utilises 70 sqm.
What are the main assets of the business?
The main assets comprise the inventory (packaging material, packaging film and packaging equipment) and debtors
Are any items not included in the sale?
The only assets included in the sale are the fixed assets and stock. All other assets and liabilities will be for the seller's account.
How have they been valued ?
At cost and net book value respectively
Strengths?
The business is well known in the market
It has unique packaging and up-market products
The company offers reliable, low cost packaging machines imported from Taiwan which gives it a competitive advantage
Weaknesses?
The packaging products sold are relatively expensive compared to other competing products in the market
Certain stock is not held because suppliers require MOQ (minimum order quantities)
Opportunities?
Additional investment is required to take advantage of the following opportunities:
- Aluminum food trays â becoming popular
- A local manufacturer, with whom the company has a relationship, is in the process of entering the market which will provide an opportuntiy for further business growth.
- Increasing the working capital will allow for increased stockholdings in order to target medium and small potential customers.
Threats?
Competiton is the main threat
What is the reason for the sale?
The owner wishes to retire
Why is this a good business?
The business has a succesfsul track record of over 20 years of trading and has an excellent name in its sector.
The business has products of excellent quality, some of which are unique.
It can be run from home with a small support staff
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Annual Turnover Amount between R 500 thousand and R 6 million
