Business Summary

The owner has been in retail and furniture for most of his career. He started operating independently in various guises culminating in the setup of the current business in 2014.

The business model is unique: warehouse retailing, online marketing strategy, low overheads, direct international sourcing, local manufacturing partnerships, and theatrical room setting shopping experience.

The main distribution hub is located in a 10,000 m3 warehouse. These premises also house a skeletal head office;? an upholstery and fabric library and fitment facility; the distribution hub for the 30 drivers/contractors that effect deliveries for the? five branch? stores; an assembly facility for knock-down furniture;?a studio for? video and content creation for online marketing; a call center to field the numerous calls that emanate from online marketing and storage for? stock that needs to be distributed to branches and independent agents.

In addition to the head office, which also acts as a retail branch, there are a further 5 retail stores in Gauteng. The business also distributes products to? Independent retail agents with whom it assists? with the setup of their websites, display material, business format, and strategy. This enables? independent agents to operate on a small scale and infiltrate communities in townships and other areas where they do not currently enjoy geographic representation.

They have grown to a substantial size with turnover exceeding R200m, all owner funded.

They have managed to differentiate themselves on several fronts that serve as a bulwark in a fiercely competitive industry.

The owner manages the business, whilst his wife fulfills the Financial Director role looking after accounting and administration. A succession plan is in place with the Buyer and Marketing Executive having been groomed for the past five years as possible replacements for the owner.

The owner is now nearing retirement age, has no family that wishes to take over the business, and wishes for a change in lifestyle.

The shares in the business are for sale at a multiple of 3.5 of the average EBITDA for the last three years. This includes a provision for the implementation of the succession plan but excludes working capital comprising inventory and capital requirements averaging R 37m.

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