Business For Sale. Manufacturing - Limpopo (lp)

This in a well established integrated manufacturing business with the following individual operations :
1)SAWMILL
Equipment is movable and can can be moved by owned vehicles to areas where wood cutting is done on farms and rural areas. Wood obtained is mainly from blue gum trees species, declared as invasive. In the rural areas work is obtained from the Dept of Agriculture via a project 'Working for water'. Use is made of the sawmill capabilities to remove the trees free of charge in exchange for the wood.
2)CHARCOAL MANUFACTURING
Wood is obtained from the sawmill activities. A total of 15 charcoal Killins (ovens) are used and are movable to the locations where the sawmill activities take place.
3)CCA TREATMENT PLANT for poles and planks. Source of wood via sawmill operations.
4) FURNITURE MANUFACTURING . This is the flagship/showcase of the total integrated business. Wooden furniture is mainly made from the red gum tree and is of an extremely high quality and nice appeal.
They are well known for patio and garden furniture , as well as customs made bar counters , or anything else the customer wants.
5) PROPERTY is situated close to the main road going through the town in an industrial zone. The land size is 2.3ha and the factory and office block is 3,165 sq m.
The property and factory is located 180kms from Gauteng whereas the other operations are mainly in the Limpopo Province.
The business is presently owner run and the furniture factory is presently only working at 25% of capacity , whereas the sawmill has not worked for nearly two years. The total personnel strength has been reduced from 400 to +- 43.
The markets for the different products are as follows :
CHARCOAL : To smelters in bulk form . Contracts are in place. Sales are made on a COD basis only.
CCA TREATMENT PLANT for poles and planks : To mines and general use such as kraals , bomas and houses.
FURNITURE MANUFACTURING : Sold directly to the public via the use of a website , agricultural/art festival shows and temporary displays at shopping centres.
R.O.I compared to asking price is an excellent 44% with a pay back period of only 2.3 years.
Break downs are available by operation. Detailed assets lists and values are available to serious buyers.
The reason for the sale is that the owner and his wife want to farm full time on their game farms.
The business has grown tremendously and the owners have cut back on staff and support and cannot manage the business if it runs at full capacity.
The husband urgently needs to under gone surgery that will put him out of work for at least three months .
The owner is prepared to act as a mentor for a new owner and it is an urgent sale in view of personal circumstances.

Opportunities are :
With more management support their is no reason why this business cannot run at full capacity.
Marketing opportunities exist to generate more sales with furniture and obtain better utilisation of the equipment by having permanent display rooms in bigger centres and also by direct marketing to furniture retailers.
For a small extra capital outlay profitability can be improved from charcoal by going into smaller retail packing with the right distribution network in place.
With BEE compliance can more government tenders be landed.

The business can be sold in total or in parts .
The CCA Treatment plant and Furniture manufacturing can be bought as one business and the property can be excluded and rented from the present owner.
On the other hand the Sawmill and the Charcoal manufacturing can operate on its own and can be bought separately.

In essence is the selling price based on an assets sale as the owner already reduced the price for an urgent sale.
Profits are good resulting in an excellent return.
Opportunities are unlimited for the entrepreneur to exploit this business to the full and at times enjoy working away from the office and in a smaller town environment.