ABBANIS Business Brokers

Dear Prospective Seller. 

Herewith a few pointers on how we operate:-

CONFIDENTIALITY. Confidentiality is extremely important when working with any broker during the selling process. We strive to protect your information from being presented to unqualified buyers. Just as we need complete financial information on your business in order for buyers to make an intelligent buying decision, we require potential buyers to provide proof of financial ability to acquire your business.

We are extremely aware of the sensitivities surrounding the sale of your businesses, for example the negative influence on the moral of personnel affecting the performance of businesses etc. and the fact that the process should be managed in a highly confidential manner. We are hesitant to bring prospective buyers to your business until such time that the Buyer is seriously considering making an offer.  Even then we will make prior arrangements with you on where we can meet so as to maintain confidentiality.  Before we divulge any information a prospective and qualified buyer has to provide us with a commitment in the form of a signed Confidentiality Undertaking. A copy is attached. If you deem it necessary then we are also prepared to enter into the same type of agreement.

PHOTOGRAPHS.  When we list your business it is normal practice to take a full range of digital photographs, which is then presented in the privacy of our offices to screened buyers.  If the personnel ask any questions, the Seller normally informs them that we are gathering information and are acting as Insurance Brokers.

PROFESSIONALISM. We pride ourselves in the way in which we analyse and present to our clients. You cannot expect anyone to buy a business unless they are presented with at least a summary of the Financials as well as a brief description on the working of the business.  To this effect we prepare a detailed presentation based on the information that is being supplied to us together with a realistic valuation for the business.

VALUATION. We use a Statistical Model based on the Return on Investment (ROI), or Price Earnings Ratio (P/E) in order to value your business.  It is imperative that we maintain a balance in the pricing in order to provide the Seller with a realistic market related price whilst at the same time acting in all fairness towards the prospective buyer. Our valuation is free of charge with the only proviso that if you decide to sell we be afforded the opportunity to expose it to the market.

If you have made a decision to continue with the process, I request that you gather the following information at your earliest convenience. Once it is ready, please inform us of this so that we can make an appointment with you to discuss the valuation in more detail. Thereafter we will prepare a comprehensive Business Presentation together with a realistic Valuation for your Businesses for your perusal and approval before we go ahead with the marketing and exposure thereof to screened and qualified buyers

1)       Financial Information.

a)       Monthly Sales for Fuel, Shop, Car Wash etc. statistics for a two year period (See attached “Excel spreadsheet” under Sales)

b)       The average monthly running expenses (See attached “Excel spreadsheet” under Expenses)

c)       The Profit Margins for every facet of the business with additional income (See attached “Excel spreadsheet” under Expenses)

d)       The financial statements for the last two years of trading. (Not essential for now)

2)       Asset List.

a)       List of assets at book value and replacement cost.  (See attached “Excel spreadsheet” under Assets)

3)       Description of the Working of the Business.

a)       Explain which product or service the business produces and which market does it serve.

4)       Details of the Premises and the Rental Agreement.

a)       What does the premises consist of shop of …m2, workshop, offices, kitchen, toilets, storerooms, car wash units etc.

b)       The amount of pumps and nozzles.

c)       Amount and capacity of Fuel tanks.

5)       Operational Details, Systems, Security

a)       What systems are in place to manage and control the business?

b)       What security systems are in place in regards to handling money?

c)       What are the average stock levels of fuel in litres and stock levels in shop in Rand value?

d)       Debtor’s levels on an average monthly basis with the upfront deposit values.

6)       Staff, Hours of Work

a)       Who manages the business, the owner or a manager?

b)       Staff levels with description of positions, cashiers, petrol attendants, administration etc.

c)       The hours of work, Monday to Sunday.  Is this a 24-hour operation?

7)       Ownership and Legal Entity

a)       Does the business sort under a Sole Proprietary, a Company, Trust, Partnership or a Close Corporation. What is the name of the Entity, Registration Number and Owner/s details and what is the presentation of shareholding?

b)       When were the business established and the period under current ownership?

8)       Selling Strategy, Future Potential and Growth Opportunities.

a)       What makes the business a good business?  In other words why would a prospective buyer be interested to buy this business (Good position, easy to manage etc.)?

b)       What opportunities exist in the micro and macro vicinities that a new owner will be able to derive from to ensure future growth in the business?

c)        Are there any negative influences that will have an impact on the business?

9)       Selling Price and Franchise Fees if any.

a)       What are the aspiration levels in terms of the selling price?

b)       Is there any franchise joining fees / training fees and what is projected value in Rand?

10)   Process Thereafter

We are totally committed to spend money and time to market and sell your business for you.  In return we would require a commitment in the form of a signed mandate. There are three types of mandates. (See attached “Excel spreadsheet” under Mandate for actual terms).

We will continually strive to serve you to the best of our ability whilst at the same time maintaining the highest levels of professionalism and confidentiality.

Our Company details are as follows:- Company name, Abbanis Services CC t/a Abbanis Business and Property Brokers with registration number CK1995/049907/23 and VAT registration number 4210153815

Please complete the following four documents below in full and e-mail or fax back to Abbanis Business Brokers at abbanis@iafrica.com"> or (021) 855-3219

We would be honoured to market and sell your business and look forward to be of assistance to you