Profitable Tool & Plant Hire Gauteng


R 18 500 000

Financial Information

Detailed financials available on request

Inventory Included

Very profitable established business operating independently and to benefit further with a BEE owner.

An exceptional opportunity to either enter this lucrative market, or to expand existing operations. This business hires Plant and Tools to the construction industry and DIY enthusiasts. The mix of product offering sets it aside from its competitors-ranging from small hand held tools to larger ride-on equipment. This allows the business to attract customers from DIY all the way up to large civil contractors. The business is centrally located in Gauteng allowing the business to source customers from a wide geographical area. The immediate area is currently enjoying a growth phase and this should continue for the foreseeable future. The business's target market is primarily the medium to large civil customer who has longer term contracts allowing the business to enjoy a high product utilization compared to smaller outlets. The business has a very large asset base which can service the needs of most customers without purchasing new equipment. The staff is competent and fully trained in all aspects of the business. The business has been operating for six years and is well established in its market. The current owner started the business in 2010 and it has grown into a large independent operation. Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation) based on historical trading amounts to R543,000 pm. Offers an excellent ROI of 35% and payback period of 34 months with a high asset base. Sales growth is solid with sales 23% higher F2016 compared to F2015 and for F2017 forecast slightly down compared to prior year due to the difficult economic conditions that prevailed. Included in the price of R18,500m plus VAT (if applicable) is assets to the value of +- R12,943m consisting of nearly 600 items and 6 delivery vehicles all in a very good condition. Repairs and/or replacements are being done on a regular basis to maintain customer satisfaction. Also available is the commercial property in a separate entity that is well located with good visibility for R1,400m plus VAT(if applicable) over and above the price of R18,500m or it can be rented at a reasonable rent. The EBPITD figure stated above is after an allowance for rent. The reason for the owner wanting to sale is that he wants to move on after having started the business and having operated it for more than six years to pursue his other business interests. The business is poised for multi-outlet growth within JHB and PTA. This will ensure continued growth into the future. A BEE owner will also be able to bring in other business opportunities to the business in the form of semi government business. This is an excellent offering for serious buyers only.