The business was started by the owner and his brother when his brother experienced severe service and quality issues during building alterations which included the installation of aluminium doors and windows at his house. Despite contacting several service providers, only one bothered to provide an estimate, and once the job was given to him, the quality and installation were way below standard.
They recognized this as an opportunity in the market to concentrate on the home-owners market and concentrate on product quality and high levels of service. Even today the owner will still keep off-cuts from projects, which allows them to do simple repair work for clients at minimal cost.
The business has grown organically with almost no sales or marketing, and apart from the builder and architect client base, rely almost entirely on word of mouth for its homeowner's work. Today they not only do windows and doors, but also roller shutters, shopfronts, showers and even frameless squash courts. They have also developed a security man-trap which is being exported to West Africa. They recently had an order for 5 of the Security Man-traps and there is the potential for a further 70. If this comes to fruition, the profit margin will cover 50% of the business purchase price.
They have done projects as far as Namibia, Mozambique, Botswana, Kimberley and Hoedspruit, although their primary market remains the Gauteng area.
All products are manufactured from aluminium extrusions (profiles) manufactured to ISO standards. Specialist equipment, careful attention to detail, and caring and well-trained staff ensure all products are manufactured to the highest standards.
They pride themselves on using only approved and tested components that will last for years without problems. Their staff has been extensively trained in manufacturing their products, and all have been with the business for over 10 years. Almost all of their products can be either powder coated or anodised in the colour of choice. Glazing options vary from 4mm normal or toughened to SIG (double-glazed) glass. They comply with SABS standards in terms of safety specifications for glass.
The owner is not active in the business apart from an administration and financial role. Provision has been made in the Valuation for an administrative person to take over his functions.
Asking Price: R 5,700,000.00 excluding inventory which will be determined during a stock take. Inventory at 28/02/2024 was R5,800,000.00
Average 2-Year EBIDTA*: R 2,814,000.00
Multiple of EBIDTA*: 2.02
ROI: 24.3 months
