Business for Sale

Business selling new and used office furniture at affordable prices

  • Listing #GBB119
    Selling PriceR 25,600,000
    Annual SalesR 26,735,000
    SDER 3,483,000

Business Description

On offer is a reputable and profitable customer orientated office furniture business opportunity situated in Gauteng who sells a wide range of new and quality used office furniture as well as custom made furniture.

Since their humble beginnings 12 years ago the business has grown from strength to strength as one of the leading suppliers of high-quality furniture in SA.

The only reason why this well-managed and established business opportunity came available, is that the Owners want to immigrate.

It has currently a customer base of nearly 7000 and proudly delivers quality service to their customers. The Owners have focused from the very beginning on its core values of customer service, quality, affordability and uniqueness to gain the trust of their customers.

It has a stunning six warehouses in total 1400 square meter as well as a 1290 square meter showroom for customer`s convenience on their well-located small holding. The diversity of their products offers customers a wide range of the best quality and most affordable new and used office furniture and custom made/made to order, both locally and internationally crafted to suit your office layout and design. Their diversity of services is not restricted to sales only, but include sales, rental, credit and on loan services as well as nationwide delivery.

The used office furniture passed a strict quality control to ensure that while it may be pre-owned office furniture, it will still fit into any office and look great. The selection of used office furniture is wide and varied giving customers plenty to choose from, to suit their needs and budget.

Trading Stock includes reception counters, coffee tables, to soft seating and couches, to high back/medium back and visitors chairs, cluster desks, executive furniture, veneer and melamine furniture items, bulk filers, round conference tables, small and large and very large boardroom tables, filing cabinets, roller door cabinets, top retrieval cabinets, credenzas, pedestals and various other items. Samples of various colors and fabric are also available to view.

The business supplies also an optional office furniture delivery and installation service in the whole Pretoria and Johannesburg areas. Furthermore, it also will gladly assist with interior design and space planning.

This well-established office furniture business is serious about becoming the preferred office furniture supplier for a wide range of customers from industrial, consumer and Government departments and entities and looking forward to a long-term relationship and mutually beneficial business.

Sellers Discretionary Earnings, also known as EBPITD (Earnings before Proprietors Compensation, Interest, Tax and Depreciation) amounts to R3,483,000 for the 2021 financial year, resulting in an excellent ROI of 35.9%.

Despite the difficult economic conditions, the growth in sales remain strong and increased for F2019 and F2020 with 19.3% and 26.3% respectively.

The Gross Profit (G/P) for F2019, F2020 and F2021 was 50.6%, 47.6%% and 54.3%% respectively which represents an average of 50.8% for the mentioned three financial years.

The total selling of the price of the Business and Property is R25,6000,000 (Excluding VAT, where applicable) and is made up as follows:

(a)The selling price of the Business is R9,700,000 and include a Movable Asset base of R1,430,000 and current Trading Stock at cost of approximately R2,214,000.

(b) The selling price of the Property is R15,900,000 .
*Regarding the Property it is a specific condition of the Seller wanting to sell all the business interests and the Property as a total package. Therefore, the sale of the Property and the Business is to be sold simultaneously to a willing Purchaser.

*The Owners offers a 2.5 hectare upgraded small holding Property for with inter alia six large warehouses, a spacious showroom, workshops, office, etc. The Property offers the following features with good capital growth in a well-located area:

*Six Warehouses: The sizes of the six warehouses are 1400 square meter in total (4 units are double volume), 4 x tool rooms, spray booth, workshops, offices, sleeping quarters for employees with full ablution facilities.

*A spacious showroom (1290 square meters) with adequate receiving and dispatching areas, office areas, reception, staff and customer parking, etc.

*Stunning small holding for a family, for entertainment, close to all major routes. Ideal business with ample space for further expansion. At the bottom of the property is a bird-haven, a large dam with a beautiful deck including a built-in braai to enjoy sundowns. Property surrounded by high walls and electrical fencing

*Two houses: A large modern house (539 square meter) with a huge open plan kitchen with scullery and pantry, large open plan TV and dining room with two built-in braai`s, a bar, a Boma area and the pool area, including a fully equipped granny flat as part of the house - yet separately.

*A smaller house (120 square meter) ideal for management accommodation.

*A smaller flat near the warehouses (fully equipped with two bedrooms)

*Fully equipped KOI ponds and breeding dams

*Fenced veggie garden

Detailed financial statements, management accounts, etc. are available only to serious buyers who have the required funding available.

Opportunities for further growth is moving to a Level 1 BBEEE which will open unlimited opportunities for increased business Government and national corporates as well as to start-up an own manufacturing plant. With their specific skills and craftsmanship, the business can enhance a competitive market in supplying their own Proudly South African Brand.

An excellent opportunity to acquire a well-established business and Property with great profitability and ample opportunity for further growth.
For further information, please contact the listed Broker.