Link Business

Exciting New Business Concept with Patents

R2,000,000 plus RoyaltiesPretoria - CentralListing: #13722

Pretoria - Central businesses for sale 

R2,000,000 plus Royalties

Import/Export/Wholesale businesses for sale
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About this business for sale

Exciting New Business Concept with Patents

Exciting New Business Concept with Patents
This unique opportunity has become available to purchase and in so doing, invest in a turnkey operation that will produce and distribute a household product that proved a success on the South African market many years ago.

The product and design concept has been dormant for years but the owner has now decided to live out his dream to make it available to consumers. The plan is to market it, firstly to the South African consumers until it has become a well-known household brand and secondly, build on the local success by rolling roll out the concept via manufacturing concessions on an international basis to selected overseas countries.

This will all be done with trademarks and both local international registered patent rights in place.

The newly uniquely designed and aesthetically attractive product is a space saving and storage device which is easily wall-mounted , plastic injection moulded and constructed from three major but simple interlocking devices negating the need for screws.

Market research has established that the product will be well accepted by the middle to upper income groups as the pricing is competitive and makes this once off purchase a very affordable one. It also found that direct sales channels are very keen to advertise the product.

Specialized and consumer supply retailers are also eager to stock this magnificent product with supplier codes already in place. A major non-profit organization is very excited at the prospect of selling the product with suggestions that they will move significant quantities through already established distribution networks to generate funds.

Competition, both locally and internationally is almost non-existent and current alternative products in the market do not offer the uniqueness of this product.

The business model is flawless and the timing is perfect as the consumer market is in frenzy over anything new, trendy and attractive. The design of the product is an indispensable tool for consumers due to its convenience, but commercial customers will also use it as it is an attractive product that will easily find its way into the corporate market due to its aesthetically pleasing appearance.

The Intellectual Property (IP) is vested with the shareholders. Protection of the IP is a challenge and costly, but very necessary. The best approach to the protection of the business model is to ensure quick development time, maximum market penetration and exposure during and after the launch.

By being the first to negotiate supply agreements with major role players it will be difficult for a future rival to compete. The registered company name is also is a very descriptive name of the product and offers additional support in IP protection. The trademark registration process is now completed and the “Registered Trademark” used.

Manufacturing in South Africa will be outsourced to a plastic injection moulding manufacturer and be transported to one central depot in Gauteng, from where it will be packaged and distributed countrywide to wholesalers, retailers and consumers that place direct orders.

Despite the fact that the manufacturing process is outsourced, the company will still have a healthy gross profit margin and based on the anticipated sales volumes, the net profit and return on investment for the shareholders will be very lucrative.

This fully comprehensive turnkey business package comprises the following:

• Genuine business concept.
• Huge target market.
• Excellent profit margins.
• Competitively priced comprehensive business package with no hidden costs to the buyer.
• Simplicity and ease of operation.
• Rapid business expansion capabilities with selling of international manufacturing concessions.

The inventor and IP holder is beyond retirement age and his first preference is to sell the business concept, Intellectual Property and downstream benefits as a turnkey operation.

The business owner will consider alternative offers in the form of an initial upfront payment for IP and thereafter a structured royalty based on sales .Royalty will be paid out of profits after royalties and available cash flow over a limited period of time or any other arrangement on a mutual agreeable basis.

The selling price of R4,0m for the local market is derived from the 1st three years cumulative NPAT of R11m and for 5 years cumulative of R29m respectively.

The selling prices for both the local market and international market concessions of R5m are derived from the 1st three years cumulative NPAT of R15m and for 5 cumulative years of R36m respectively. The business concept as outlined above offers excellent ROI’s and pay back periods.

Start up and capital expenditure will be approx. R2.4 year in the first year, mainly for two moulds that will have a long life span. Working capital requirements in the first year will be low as it is expected that the business will become self-funding in the first year of operation with breakeven in the fourth month of trading.

This is truly a unique and once-off opportunity with a product that has proved successful and timeless in the market place with the added advantage of IP protection in place and the trade and consumers just waiting for the product to be launched.

This is a turnkey operation ready for commencement of manufacturing within a month as manufacturing arrangements are already in place. A detailed business plan including marketing of the product backed up by detailed financials are available for serious investors, entrepreneurs, investment groups, venture capital companies, etc.

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082 600 3848

Leon Bahlmann