Link Business
*** SOLD ***


R4,850,000Listing: #13435

businesses for sale 


Automotive businesses for sale
Refer to Broker

About this business for sale

This reputable manufacturing and service business operate in the highly sophisticated South African’s automotive and allied industries, which is a global and one of the country`s most important role players and contributors to the GDP , servicing both the local and export market. Whilst not a direct role player it plays an important role and link in the consumables and services supply chain by having established them as a reputable provider to the major car/auto manufacturers and allied industries.

The medium size rented factory is conveniently located to serve one of the two biggest motor manufacturing hubs in South Africa and is well placed from a logistical point of view.

They operate in a niche market supplying sought after and most needed products and services. Manufacturing is done in a clean environment using highly sophisticated equipment to be able to fulfil the automakers custom made requirements.

The business has been owned by the same owner since inception, is well managed and operated and earned a reputation for good business practises. BEE rating is high in terms of being a QSE (Qualifying Small Enterprise) and therefore an important compliance factor for the auto manufacturers.

Financial performance has been solid over the years with a constant increase in turnovers and margins. The growing turnover and demand for products and services is a reflection of trust and loyalty from the prestigious customer base.

The business owner now wishes to go into retirement.

Financial performance is a NPBITD (Net Profit before Tax and depreciation) of R181, 000 per month. The listed price includes assets of R2,685m, but excludes stocks to the value of approximately R750k. This renders a very good ROI of 39%.

Whilst this business has supply arrangements with the major auto manufactures and allied industries in place there is opportunities to expand the business as there is ample spare manufacturing capacity availability to fully exploit the capital outlay and resources to its maximum return.
Barrier to entry for this business is considered as high which makes it a very attractive proposition.