"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The company is an established manufacturer and supplier of wooden pallets and crates, serving industrial and logistics clients across South Africa. It offers a full range of standard and custom-designed pallet solutions, including export-compliant and recycled options.
Known for its reliability, quick turnaround times, and commitment to sustainability, the business operates with strong client relationships and consistent repeat orders. It is well positioned for growth through capacity expansion and broader market reach.
How long has the business been established?
13 Years
How long has the owner had the business?
Operated for 10 years in partnership and independently for the past 3 years.
What steps are in place to solve 'load shedding' problems?
Backup generator servicing the entire business park.
How does the business operate on a daily basis?
The Operations Manager oversees deliveries, daily production, raw material procurement, and factory staff, while the Owner is responsible for financial management, invoicing, client relations, and supervising the sales and marketing team.
How are the clients attracted to the business?
Client acquisition channels include referrals (word of mouth), Google marketing, Facebook, LinkedIn, direct sales calls, bulk email campaigns, and the company website.
Does the business have any contract work?
The company maintains annual standing supply agreements with two major national distributors, ensuring consistent order volumes throughout the year.
What competition exists?
Competing pallet manufacturing businesses
What are the seasonal trends?
October and November are highest for retails markets
Is the business VAT Registered?
Yes
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
As at August 2025
What percentage of the business is cash/credit?
60% credit, 40% cash
What is the age analysis of the debtors book?
30 to 60 days
How could the profitability of the business be improved?
Paying suppliers in advance, enhancing productivity, and minimising expenses.
What is the total staff complement?
17 permanent workers and 15 casual workers
Give a breakdown of staff/ functions/ length of service?
Operations Manager - 7 years; Workshop supervisors x3 - 4 years;
Pallet Makers x12 - 3 to 12 years; Truck drivers x2 - 11 years
Do any receive special perks or incentives?
Annual bonus by discretion
Do any have management potential?
Yes
How involved is the Owner in running the business?
Daily
When does the current lease end?
Can give 2 months notice or engage in one year contract
Is there an option of renewal & what period?
Yes, one year
What is the annual escalation %?
6%
What are the trading hours?
Monday- Friday 7h00 to 16h30
What is the square meters of the business?
990
Is a copy of the lease available?
Yes
Do you require a licence?
No
What lease deposit and/or other surety is required?
1 Month rental
What are the main assets of the business?
3x Tata Trucks, 2x Compressors, 1x Big cutting machine,
3x small cutting machines, 1x planer, 1x extractor, 1x spindel moulder,
2x forklifts
Are any items not included in the sale?
Toyota Hilux Bakkie, Boardroom table and chairs
What is their overall condition?
Good working condition
Do any require repairing?
No
How have they been valued ?
Comparative in the market
Which assets are on lease/HP and with whom?
Toyota Hilux Bakkie, Wesbank
What are their settlement amounts?
R600,000
Will Seller settle or Buyer to take over?
Seller will settle
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
Established brand with over a decade of operational experience and proven industry credibility.
Strong, long-term relationships with major national distributors and repeat clients.
Diversified product range including standard, custom, and export-compliant pallets and crates.
Weaknesses?
High dependence on timber prices and supply fluctuations.
Limited automation may constrain production scalability.
Reliance on key management members for daily operations and client relationships.
Seasonal cash flow pressures due to upfront material purchases.
Opportunities?
Expansion into new regional markets or export territories.
Introduction of value-added services such as pallet collection, repair, and recycling programs.
Growth in e-commerce and logistics sectors driving increased pallet demand.
Potential to automate production lines to enhance efficiency and margins.
Environmental regulations promoting the use of sustainable and reusable packaging solutions.
Threats?
Rising input costs (wood, fuel, labour) impacting margins.
Increased competition from low-cost or informal pallet producers.
Economic downturns affecting industrial and logistics clients.
What is the reason for the sale?
Limited cash flow constrains the companyâs ability to expand, and after 13 years in the same sector, seller is exploring opportunities to diversify into new markets.
Why is this a good business?
With sufficient cash flow and funding for expansion, the company can pursue larger clients while further leveraging strong relationships with its existing loyal customer base.
Annual Turnover Amount between R 500 thousand and R 6 million
