Summary
This business is a leader in the Hiring of Marquees, floors, tables, chairs, cutlery and other items for functions, events and weddings. Working closely with other Event service suppliers and a large client base makes it is a strong business with a 13 year track record, with good underlying assets and a strong run even through the recession. The opportunity exists for a BEE partner to join this business with an option to buy the rest of the equity later on after learning all the ropes. Proper financials to complement this offering. Owner run and uses supervisors to manage the operations (Refered to as Operations on a daily basis, managers or Crew Leaders). Word of mouth and Recurring clients account for 60-70% of the business, e.g. Jacarander. Advertising done in the Yellow pages, seller is busy training a sales rep to target the government departments. Smaller registered event organizers that get contracts all come to this company to hire the equipment

In the last 10 years due to the amount of events especially political, e.g. public holidays the year has been pretty flat. There is a bit of a peak in the last 2 weeks of November and the first week of December and then the business closes after the 16th December till the 1st Monday in January

The business is Vat registered. All returns are on file and management accounts untill the end GFeb 2010.

A percenatge of the profits must be ploughed back into the business to replace equipment and acquire more.

The seller will look at a structured deal with say a BEE partner buying in 50% up front and the other 50% after a year with the normal warranties that come with this type of deal, the seller would also be happy to settle half the leases in this cases thereby freeing up more profit.

Staff complement - 37 staff members. Office based staff - 7 , Hourly staff - 30.
All staff members have an incentive scheme, there are 2 schemes, one for the office staff and another for the events staff. With the bumper month in April all staff doubled their salaries. The staff are on contract. All the office/admin staff have management potential

Owner is 100% involved in the business.

The premises are on a ongoing lease that has a 4 month notice period. There is an option to renew at an annual escalation of 10%

Trading hours Mon-Fri 8am-4.30pm, Sat 8am-1pm

Square meterage of 1200m2 under roof

A full asset list can be drawn up and provided to serious byers.
Old equipment is sold and replaced on a ongoing basis, the age therefore varies but generally good to excellent condition of assets