Manufacturing Business & Property available at R 6’000’000-00 in PE

Manufacturing Business & Property available at R 6’000’000-00 in PE, (package deal and excluding stock).

Manufacturing entities have long been seen as profitable manufacturing business opportunities and this type of business is seldom available because supermarkets, (Spar, Pick a Pay, S h o p rite, etc.) convenience stores, retail stores, etc. cannot operate without the products / components manufactured by this business. The repeatable supermarket consumption can create constant profit and cash flow with no COVID-19 impact on business activities

The Seller’s 35 years industry experience has taught him that while starting a factory was a great idea, semi- retirement is also a consideration nowadays and the Seller will assist the new owner three days per week, for one year, just about free of charge.

1. Market Research

The success of this factory depends primarily on local market volume and it is possible to expand the business activity outside the Port Elizabeth and surrounding areas.

Turnover can also be increased with the manufacturing of other product on the premises

2. Profit Research

This profitable business opportunity is worth investing in due to high net margins in this industry and it has a very short payback period of ± 3 years, and the return on investment could be above and beyond market related R O I (return on investment) and in excess of 30% on a R 7.5 million business valuation, (without the property). This is an absolute sound investment with an actual discretionary cash flow or operating profit / EBPIDT, {Earnings Before Proprietors Income, (wages or drawings) Interest, Depreciation and Taxes} of ± R 1’920’000-00 per annum, ( ± R 160’000-00 pm), during the period March 2019 – February 2020.

3. Unexplored potential income

3. Added benefits

The business was never restricted in production because it was never exposed to E S KO M load shedding and this business still excels after ± 35 years due to a continuous demand for the manufactured components and trading in an environment that is not oversupplied.

4. Assets

The estimated asset value just below ± R 4 million rand, (excluding the building and including ONE L D V”s)

5. Property with excellent location (± R 1.8 million rand valuation).

This Property with its excellent location will also increase the new owner’s profitability of the business because there is no yearly rental escalation clause from any Landlord.

The management accounts / information will be available on request to Purchaser with funding options available to cover the above mentioned selling price and subject to the Seller’s terms and conditions. Contact: G e r t S t r y d o m <> i b m brokers@gmail.com