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Infrastructure Development Repairs And Maintenance Business For Sale

East Rand, Gauteng
Asking Price:
R30,000,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
R43,000,000
Cash Flow:
R11,500,000

The Business is essentially a “Fluid transfer specialist” and more specifically a water transfer specialist.

It operate in the construction, engineering and manufacture sphere of business with approximately 50% of revenue generated from Municipal and Government contracts, 10% from Mining and the balance private industrial clients.

It is CIDB rated and meet the highest specification in quality and service delivery.

Processes involve civil construction, installation, maintenance and repairs of valves, pumps and pipes.

The business employs a sales force of 10 individuals who are actively involved in promoting company capabilities, identifying business opportunities and quoting on tenders and contracts.

The business also a website and all vehicles are properly branded to profile and advertise the business to the market.

The corporation has also historically advertised its services in magazines and trade exhibitions.

Property information

Real Estate:

Lease

Lease Terms:

Lease terms and conditions (escalation, renewal, duration) are all negotiable and will form part of lease contract negotiations.

Leasehold Rent:

62,000/m per annum

Location:

The business is operating from an Industrial site on the East Rand. The property belongs to the seller and the purchaser can decide to rent, buy or move the business to a new premises. A second property is also rented on which civil ground moving equipment is stored.

Premises Details:

The premises from where the business operates is owned by the Seller and was acquired 2 years ago. It offers 2200m2 under roof surface area.

The Purchaser has the option to acquire (market price indication R10,5m), rent (R62,000/month) or move to alternative premises.

Size in square feet:
2200m2

Business Operation

Expansion Potential:

- The business is currently focused on Municipal contracts.
- The larger Government projects with Water Boards offer enormous growth opportunities.
- The revenue potential based in its current structural makeup could be in excess of R200m and would require only incremental increases in operating expenses.

Competition / Market:

There are very few competitors that meet a similar CIDB rating (estimated at 10 – 12) This is often specified as the minimum requirement in larger projects.

There are many non-certified competitors offering competitive pricing but would specifically excluded from lucrative contracts.

Most competitors do not own their own equipment which has been acquired by the Seller at great expense but are enjoying higher operating margins and a competitive edge as a result.

The business holds a level one BBBEE status and with large quantities of work secured from municipalities and mines it is advisable that the purchaser sustain this status.

Reasons for selling:

The seller is emigrating.

Trading hours:

The business is on a 24/7 hour standby schedule.
Office hours are between 07:30 – 16:30 Monday – Friday.

Employees:
The business employs a total of 30 persons. - A technical Director - Civil Engineer - Accounting Officer - 10 Sales Persons - 4 x Field Team Leaders - Coded Welders - Certified Drivers - General Workers
Years established:
7 years

Other Information

Support & training:

Negotiable. The seller is also prepared to consider the sale of a part of the business.

Financing available:

The seller is negotiable on price and may consider some terms if the purchaser can provide securities.

Furniture / Fixtures value:
R12,000,000 - included in the asking price
Inventory / Stock value:
R8,000,000 - included in the asking price
Relocatable:
This business can be relocated.

Contact Information

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