Established, well located & very profitable butchery
Listing # GBB201 Location Gauteng Selling Price R 18,900,000 Annual Sales R 56,033,000 SDE R 5,246,000 ROI 27.80% Industry Retail
An exceptional opportunity to acquire this lucrative butchery well known for best quality meat products.
The range of products covers only high quality meat from beef, poultry and pork.The butchery has a good reputation for it range of cold meats and sausages. Other products and services include biltong and dried meat in a large onsite dedicated biltong dry room, game meat processing during the hunting season and rental of spitbraai’s for functions.
The business just recently adopted the facility of an online store ordering and deliveries and this is growing well.
Butchery very well located with good visibility and ample parking. Surrounded with many other shops and been in the same location for many years. Butchery with the same owner for more than 20 years.The Butchery has a well laid out retail area with excellent display fridges, racks, well placed tills at the exit, etc.
The business has been operating for over 20 years and is well known. The current owners started the business and it has grown into a large independent operation.
The premises also belong to the Sellers but included in the Operating Costs is a market related rental as the property is not part of the legal entity trading.
Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation – also known as SDE = Seller Discretionary Earnings) based on historical trading amounts to R437,185 pm. Offers an excellent ROI of 27.8% and payback period of 43 months notwithstanding the high asset base. Sales are R56,033,000 per annum and growing.
Included in the price of R18,900,000 plus VAT (if applicable) is assets to the value of about R3,000,000 and consist of various Cold Rooms, Manufacturing Equipment (cutters/scales stainless steel tables/trolleys, etc.), Delivery Van, Office Equipment, Computer Equipment including POS system and Security Equipment, all in good condition. Also included in the price is Stock to the value of about R2,500,000 made up of raw and semi processed meat and final saleable products, spices, packing materials, etc.
The reason for the owners wanting to sell is that they want to reach the stage where they want to scale down and considering moving to the coast after having had it for many years starting and growing the business in a successful ,reputable and profitable entity. The two owners are involved on a revolving day- to- day basis, overseeing operational standards, etc.
Sales and growth for the butchery business for the four years 2018 to 2021 remained strong notwithstanding difficult economic conditions that prevailed. The business is poised for further growth with the advent of online ordering that looks very promising. The underlying concept for a good and proven business coupled with product and service reputation has been laid over a long time span.
The owners will ensure and provide adequate training. Full trained staff complement with two fulltime Managers that handles the day- to- day operations.
Excellent established Butchery to acquire in good location in an area with high population growth.