Acquisition Value
R3.6Million: Business Value (Total Selling Price)
Proposed Deal Structure (Need to be final approved by Seller)
R2 Million as deposit on date of Hand Over
R1,6Million payable over a negotiable period.
Profitability
R1,273,675Mill: Net Profit per Annum - R106,140: Net Profit per Month
Investment Returns
2.8 x PE Ratio (Price Earnings Ratio, Before Tax)
36% x ROI (Return on Investment)
34 x MPB (Months’ Pay Back)
IMPORTANT NOTE
There are certain terms, conditions and requirements in terms of our agreement with the seller under which we are restricted from introduce a potential purchaser/investor; no detailed operational/financial information will be disclosed without the required documentary and source documents being processed according to the seller's criteria.
BACKGROUND HISTORY
The business was established more than 17 years ago as a diverse and innovative technology company in telecommunication with the vision to help create a world where technology is powered by individuals, ingenuity and independence. The company’s mission is to provide tailored solutions and lifelong support to empower people, community, and businesses to control the way they harness technology. The current owner and technician are full-time involved in the business; he keeps an eye on the business operations and administration, while the technician does problem solving, installations and maintenance of systems at businesses and individual clients. After many successful years in business, the owner decided to retire from the industry, He shall be available to remain in the business after it has been handed over to the new owner for a negotiable period and to secure a seamless transition and handover.
STAFF AND WORK Forces
There are two permanent employees on the payroll, both of whom have many years of experience in the industry and are target-oriented to meet the requirements of the market environment and to promote positive growth in the business and meet client’s needs to the best of their ability.
OPERATIONAL
The company currently operates from the owner’s residential home in Pretoria. With all the technology, it can obviously operate from anywhere and clients have no reason or demand to visit the business premises. The business generates its revenue currently from the following systems:
VOIP (Voice Over Internet Protocol): The business meets the client’s needs and ensures his deployment is flexible, reliable, and secure. The friendly support team provides exceptional service whenever the customer needs it.
PABX Solutions (Work from anywhere) Remote working is no longer just a nice-to-have, but a must-have capability for businesses of all sizes. Whether cloud-based or on-premises, Cloud PBX system offers secure and flexible remote working tools. The system has a lot to offer with the following value-added futures:
Voicemail, enterprise-grade reliability, free calls between staff, advanced call routing and queuing, caller ID, employee mobility, call recording, business hour rules, custom hold music, call forwarding, hunt groups and call screening.
Fiber & LTE Services (Super-Fast home & business internet): Fiber to the home/office is much faster and more reliable vs cable internet or DSL. But it has other major advantages, like no throttling and better TV picture quality.
Back-Up & Solar Generation Solutions: No matter which way a house is facing, energy prices are going north. Demand is increasing, and resources are dwindling. The Sun gives more than enough solar energy to power everything.
Network Installations (Quality Guaranteed): Whether it’s for a home or business, the company guarantee exceptional workmanship and only utilizes industry-leading equipment. The company does all its clients networking needs and ensures a seamless and reliable network infrastructure for their homes or businesses.
The business is small enough to deliver old-fashioned quality services but definitely big enough to meet all the requirements and demands at all levels of clients, from individuals and small businesses to corporate clients in any industry.
MARKETING AND CUSTOMERS
The business has never implemented an active marketing plan with an infrastructure of reps and marketing people. The income grew over the past 17 years based on word of mouth and referrals from old established relationships with long-standing loyal clients. The client base consists of corporate clients in different diversify industries, small and medium-size businesses and individuals.
SUMMARY
The demand for specialised telecom systems in all segments of the industry have grown rapidly over the past decade in all the provinces of South Africa. The need to work from home for corporations as well as small businesses after COVID-19 has grown rapidly over the past four years and will even grow more in future and this is one of the main reasons that a proper telecom system for support will be in demand. The business is aligned to handle the rapid pace of potential growth, with owner-driven, trained staff and excellent service and extensive knowledge of the industry, backed by the best possible solutions and systems.
FINANCIAL OVERVIEW
A comprehensive financial overview was carried out over the system documents from the financial system and management accounts. The relevant source documents were confirmed against operational expenditure. The current financial overview does include historical revenue on a monthly basis, latest management accounts, cashflow projections, 60-month profit and loss projections and a stress module to analyse the price valuation and risk analysis.
