Verified Listing
Posted on November 14, 2017 / 229
Price : R6,900,000
Listing Type : Engineering
Location : Germiston
Ref. No: : 2204
Turnover : R1 399 546
Expenses : R1 081 715
Net Profit : R317 831
Asset Value : R3 800 000

Manufacturing – For a business of this quality and having taken all of the aforementioned factors, over- shadowed by a weakening economy as they are, into consideration, a price/earnings ratio of 2.5 x will, represent fair value to a serious buyer.

Therefore, considering Net Profit after tax of R2.747.529 x 2.5 = R6.868.823, or R6.9m. This amount includes all office and factory equipment, tooling and vehicles, but excludes stock of steel and other metal, and work in progress.

It also assumes that the business will be debt-free and all of its assets unencumbered on the date when it is sold to a buyer.

* Abel Acuna – LP KZN North Coast