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Profitable Plumbing Supplies Business For Sale

Johannesburg, Gauteng
Asking Price:
R2,500,000
Sales Revenue:
R9,479,059
Cash Flow:
R1,142,702

This profitable plumbing supplies business is situated in the Northern Suburbs of Johannesburg on one of the busiest thoroughfares in the area.
It is one of two branches, the other being in the north-western suburbs and not currently for sale. The owners wish to dispose of this branch as a separate entity. It is registered in it own (Pty) Ltd and trades completely autonomously from the other branch. The other branch may become available in the near future.
This branch was started by the owner for the benefit of his sibling who has been running it since inception as General Manager. The sibling had no plumbing supply experience, but with the help of very knowledgeable staff has been doing it very successfully for the past 7 years. Unfortunate health issues have left them with no choice but to dispose of the business.
They own the premises they operate from, and this is not included in the purchase price. The premises is for sale at R 6,500,000.00 or can be rented from the owner. Provision for a rental of R 75,000.00 has been made in the business appraisal.
This is a very fast developing area with new developments starting on an almost daily basis, and there is a myriad of growth opportunities for a skilled marketer and hard working entrepreneur.
EBPIDT 2018 - R 1,142,702.00
R.O.I. - 45%/2.1
Payback - 26 months
Business price is R 2,500,000.00 but transaction includes stock, debtors and cash equivalents of R 4.0m as per 2018 Financials making total purchase price R 6,500,000.00 subject to stock take and level of current assets and liabilities. Price excludes VAT but transaction can be zero rated.

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