How does the business operate on a daily basis?
-The order for the products comes mainly be email, by phone and/or clients coming in personally. The clients also come into the business to collect their orders
-The business has specialized staff who know the products by heart, are firm on product quality and sizes and are able to give expert advise
-There are daily morning briefings, during this time there is discussions on any unfinished tasks, updated to-do lists and reporting of grievances of clients and staff which is delt with quickly and efficiently.

How are the clients attracted to the business?
The business sends out advertising for special products, new products or promoted products on a weekly basis by email
Most of the clients will return after they made first contact, as they are attracted by the vast product range, exceptional quality and effective service
Clients making use of accounts, also have the benefit of free delivery, enabling them to order continuously and paying at the end of month

What Advertising/Marketing is carried out?
The most of the of the advertising is done via email to a carefully selected client list.
The business has a huge contact list of clients consisting of hotels, lodges and restaurants throughout Namibia
Clients outside the borders of Namibia contact the business after being referred to by happy clients

Does the business have any contract work?
The business has an existing contract with NWR (Namibia Wildlife Resort) for the amenities for all camps

What competition exists?
We identified 3 main competitor all located in Windhoek.
It seems that each of them focusses mainly on specific (smaller range) of products with a focus of product pricing.

What are the seasonal trends?
The busy times in the business co-insides with tourist season running between May and October
- wintertime sells more blankets, electric mattress heaters, hot water bottles and safari ponchos
- summertime sells more pool towels and electric fans
- rainy season is bestselling time for umbrellas
The business also regularly visits the Hostex Expo in Johannesburg and Expos in Dubai and Doha to stay on top of newest trends, products and designs

Is the business VAT Registered?
The business is registered for VAT

What VAT documentation is on file?
All VAT returns as from day of registration for VAT (as from 2012) is available

Are there up-to-date Management Accounts available?
All management accounts have to be prepared by hand as they are compiled from excel bookkeeping. They are available

What Balance Sheet and Income Statements are available?
The Financial year-end is August.
We have on file the Annual Financial Statements (AFS) for the period ending August 2024, August 2023 and August 2022.

What percentage of the business is cash/credit?
In the business the ratio is 25% cash and 75% credit

What is the age analysis of the debtors book?
A healthy debtor's book with 95% on 60 days or less.

How could the profitability of the business be improved?
Implementing of a more robust stock control system for stock keeping. The business operation runs smoothly and effectively, striving to improve wherever a gap in the market is identified. This can be processed quickly because it is owner managed and run.

Is Seller finance available and for what amount?
Our client will not consider financing the transaction.

What is the total staff complement?
There is 12 staff members currently in the business

Give a breakdown of staff/ functions/ length of service?
The breakdown on staff currently in the business:
* General Manager- 1 Owner
* Financial Manager -1 Owner
* Assistant manager / Head of Sales -1
* Sales ladies - 2
* Sewing department - 1 - working at an hourly rate (approx. 120-130 hours /month)
* Driver (deliveries) - 1
* Assistant driver -1
* Warehouse manager -1
* Warehouse assistant - 2
* Cleaner/warehouse assistant - 1

Do any receive special perks or incentives?
The business work on a turnover related commission for sales staff.
The owner reckons that the commission model is due for renewal and needs to be applied to all staff.
Staff transport with the company owned vehicle, thus cutting the time and cost of commuting all staff members
Staff members may join a medical aid scheme (elected plan and benefits) at company cost after successful completion of one year's service at the business.

Do any have management potential?
The business owner has identified an exceptional individual/worker who acts as appointed manager when the owners are not available

How involved is the Owner in running the business?
The business is owner managed and they are involved in the day-to-day running of the business as general manager.
The accounting is solely done by owner, as well as debtors/statements, creditors, all payments, salaries

What are the trading hours?
The trading hours is from 8h00 - 17h00, Monday - Friday

What is the square meters of the business?
The erf's size is 1597sqm
The under-roof area, which includes the showroom, offices, warehouse and storage room is 1388 sqm in total

Do you require a licence?
The business requires a Health Certificate from City of Windhoek which must be renewed yearly (between May and June)

Is the property included
The properties are registered in the name of a Close Corporation.
Our clients will consider a lease agreement where the business is bought as a Going Concern.
It is our recommendation that the properties be part and parcel of the deal and the properties are included in the asking price.
(Potential buyer may consider acquiring the Member's Interest in the Close Corporation and thereby affectively acquiring / including the properties)

What are the main assets of the business?
- The business carries a sizable amount of stock of exceptional quality
- The companies long standing account clients, recurring happy clients,
- The business has motivated, experienced and reliable employees
- The company owns the building
- Good cash flow in the business
- Sole agencies with several suppliers, no competition for many premium products made available in Namibia
- Existing quick flow of supplies from Europe and SA

Are any items not included in the sale?
The vehicles currently driven by owners can be discussed with potential buyer, it can also be part of the package if so needed

What is their overall condition?
The business owners put high emphasis on maintenance, thus everything is in impeccable condition.

Do any require repairing?
If the owner sees any repairs that are needed it is done immediately.
The property is in mint condition

How have they been valued ?
Fair and Reasonable value from owner.
Recent valuation conducted by property valuer.

Which assets are on lease/HP and with whom?
Except for the property (mortgaged) there are no Higher Purchase or lease agreements, and everything is paid up for.

Will Seller settle or Buyer to take over?
Property bonds will be settled by the Seller

Are copies of agreements available?
All documentation is available as needed.
On file we also have the property valuation reports.

Are they presently insured?
All properties, stock, all vehicles and computers are fully ensured in the company

Strengths?
- The availability of vast stock in the business
- The motivated employees working for the company
- The business has good cash flow
- The business created a pleasant environment for both clients & staff
- There is not a strong/big competitor
- The broad clientele base with direct contact via email advertisement
- The business holds the sole agencies for a range of quality products/commodities only available from this business
- The business is dedicated to high customer satisfaction
- The high level of experience and practical knowledge of owners on hospitality approved and suitable products
- The smaller number of effective employees, high productivity is a plus point in the business

Weaknesses?
- The owners of the business have identified stock control which could be more efficient
- New owner can evaluate buying bulk containers of linen & towels directly from manufacturers in Asia for a price advantage
- The close owner supervision ties them to the daily operations in the business, thus, they cannot be away from the business for long periods of time
- The owner is required to travel a lot

Opportunities?
- Tender for government
- Exploring the Angolan market
- Expanding the range of products for hospitals

Threats?
There are no immediate threads in the industry or in the company in particular that we could identify
It has been observed that some of the competitors started flooding the market with linen & towels at lower prices, with little mark-up, thus poaching some of the business's regular clients. The company decided to not step down to this level as price wars damage your business.

What is the reason for the sale?
The owners are nearing retirement age and plans to relocate back to Germany, closer to the children and grandchildren

Why is this a good business?
- Consistent and stable revenue with good GP margins.
- Instilled work ethics
- Proper financial statements
- The business is easy to manage
- Established processes, controls and protocols followed
- Exceptional staff, well trained and committed to the business
- Wide base of suppliers backed by accounts available
- Solid database of clientele
- The company's name is synonymous with quality and service countrywide

All and all, just a solid business servicing and supplying to an expanding market segment in Namibia.

Our client is also flexible to accommodate the buyers preference for hand over arrangements