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Listing ID: 770585

Established Computer and Software Business For Sale

Eastern Cape, South Africa

R 2,280,000

Revenue: not disclosed

Cash Flow: not disclosed

Business Description

Average profit: R40,869
Sector: Sales & Services
Stock: R80,000
Price excl. stock: R2,200,000
Total assets: R2,000,000
Monthly turnover: R1,137,343

Established in the early 90's, this IT computer and software business has continuously adapted to meet the ever-changing demand in the IT enviroment. Supplier of hardware and software of all major IT brands. Profitable and well managed. Netting R75 000 per month on average for period 1 march 2012 to 31 January 2013.

1. History Background

Fully describe the business's activities?

The sales,instalation,training and maintenance of information technology, hardware and software.

How long has the business been established?

Since 1990

How long has the owner had the business?

Since 1990

2. Present Market

How does the business operate on a daily basis?

The retailing, instalation, training and maintenance of IT hardware and software.

How are the clients attracted to the business?

Business established in 1990 and has developed a reputation for service exellence over the years. The business has continously adapted to the ever-changing demands on the IT industry.

What Advertising/Marketing is carried out?

On Website, directories and monthly specials etc

Does the business have any contract work?

Support and maitenance contracts on installed software programs , but always invited to tender on projects.

What competition exists?

Other It Companies.

What are the seasonal trends?

Consistent sales throughout the year.

3. Financial

Is the business VAT Registered?


What VAT documentation is on file?

Vat returns as requested by SARS.

Are there up-to-date Management Accounts available?

From March 2012 to 31 January 2013

What Balance Sheet and Income Statements are available?

Annual Financial Statements for the last three financial years, and management accounts for period 1 March 2012 to 31 January 2013

What percentage of the business is cash/credit?

80 % credit and 20 % cash.

What is the age analysis of the debtors book?

30 days from Statement.

How could the profitability of the business be improved?

To be advised

What is the payback period?

46 Months.

What is the ROI?

24% return on Investment.

4. Staffing

What is the total staff complement?

5 managers and 8 assistents

Give a breakdown of staff/functions/length of service?

More than 100 years of combined experience.

Do any receive special perks or incentives?

Two senior managers have use of company vehicles.

Are they on contract?

All staff on permanent contract.With big projects casuals are hired on a fixed period basis.

Do any have management potential?

The 5 managers are well trained and accredited by the leading brand IT suppliers.

How involved is the Owner in running the business?


5. Premises

When does the current lease end?

The current lease is on month to month basis. A new lease is to be negotiated with the landlord.

Is there an option of renewal & what period?

To be negotiated.

What is the annual escalation %?

To be advised

What are the trading hours?

Monday to Thursday: 8:00am to 5:00pm Fridays : 8:00 am to 4:30pm Saturday: 9:am to 1:00pm Sundays and public holidays closed

What is the square meters of the business?

Ground Floor 170m2 and mazzanine 47m2

Is a copy of the lease available?

A new contract is to be negotiated with the Landlord.

Do you require a licence?

Accredited licence holder to retail and install software of all major suppliers.

What lease deposit and/or other surety is required?

To be advised

6. Assets

Is a full asset list on file?


Are any items not included in the sale?

All items on list are included in the sale.

What is their overall condition?

Excellent working condition

Do any require repairing?

No repairing required at this stage. Present owner would continue to maintain.

How have they been valued ?

At replacement value less 50% depreciation.

Which assets are on lease/HP and with whom?

To be advised

Will Seller settle or Buyer to take over?

To be advised

Are they presently insured?


7. S.W.O.T. Analysis


Established since 1990, profitable and earned a reputation for service excellence. Have adapted over the years to meet the ever-changing challenges of the IT industry. preferred supplier of Microsoft software etc.


The IT industry is competitive and an ever-changing industry.


This is an exellent opportunity to enter the IT industry via a well established and profitable comany.

8. Conclusion

Why is this a good business?

It has earned a reputation of service excellence and is accredited to all the major suppliers of hard and software.

What is the price plus stock and the net profit?

The price is R3200 000 the hardware stock on hand is estimated at R80 000 and the business is netting R75 000 per month on average over last 11 months

Property Details

Property Type:



Reason For Selling:

Owners wish to retire.

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