Ref. No - BFS938032

LocationSouth Africa, Gauteng

Ref. No - BFS938032

Sector - Services

Asking Price
R6,000,000
Monthly Profit
R176,620
Asset Value
R 1,518,099
Stock Value
R 0
Yearly Net Profit
R 1,942,818

Summary

Owner-managed aluminium manufacturing and on-site installation operation for sale. Strong connections with contractors, QS supplier lists and architect/builders’ referrals. Commercial progress-claim model with standard retention structures on projects. Flexible premises lease available from the landlord with 8% annual escalation. Ideal bolt-on or owner-operator acquisition with identifiable growth levers.

Give me more information

Fully describe the business's activities?

The business operates in the aluminium window and door industry, specialising in the design, manufacture and installation of architectural aluminium products for residential and commercial clients. The operation is primarily commercial and project-driven, with approximately 90% of work generated through commercial projects (typically secured via tendering), and approximately 10% generated from residential sales.
• Aluminium windows (including sliding, pivot, top-hung and side-hung configurations)
• Aluminium doors (including sliding, folding/stacking, French and double doors)
• Shopfront supply and installation
• Double-glazing solutions
• Custom aluminium systems designed to client specifications
The business provides a full turnkey service, managing the process from initial consultation and site measurement through to shop drawings/specification confirmation (where required), fabrication, glazing preparation and final installation on site.

How does the business operate on a daily basis?

The business operates as an owner-managed aluminium fabrication and installation operation, with day-to-day activity coordinated by the owner. The owner is responsible for the full front-end and administrative function, including handling incoming customer enquiries, preparing and submitting tender quotations, accepting orders, planning and scheduling work, allocating staff to jobs, ordering materials, and processing payroll.
Operational delivery is completed by an in-house production and installation team. Workshop production is undertaken by two fabricators, supported by two glass cutters, who prepare glazing components required for completed frames and units. Installation is carried out by two dedicated installation teams (two installers per team) who fit aluminium windows and related products on site in line with job specifications and agreed timelines.
For larger projects, the business supplements its internal capacity with a long-standing subcontractor who acts as a project foreman to coordinate site activities and manage execution, enabling the business to scale delivery while maintaining oversight and quality control.
In a typical daily cycle, work flows from enquiry/tender pricing and acceptance, to job planning and materials procurement, to workshop fabrication and glass preparation, and finally to on-site installation and close-out.

How are the clients attracted to the business?

Clients are primarily attracted through repeat and referral-based channels linked to the commercial tender market. Long-standing corporate clients routinely invite the business to participate in, and submit, tenders for upcoming projects. In addition, numerous building contractors request pricing and appointment for the aluminium scope on their projects, and the business is included on the supplier lists of multiple quantity surveyors (QSs). Builders and architects also refer the business for opportunities and introduce it to project teams to enable participation in competitive tender processes.

What Advertising/Marketing is carried out?

Online visibility via a company website
Business directories
Project portfolios and completed work references
The business relies more on reputation and referrals than aggressive paid advertising.

What percentage of the business is cash/credit?

Given the predominantly commercial, project-based nature of the work, most revenue is generated on credit terms via progress billing rather than over-the-counter cash sales. Commercial projects are typically invoiced monthly through progress claims for work completed and work in progress, with claims generally submitted on the 16th of each month. A standard retention of approximately 10% is commonly applied on these projects, with 5% released on practical completion and the remaining 5% released upon final sign-off/hand-over (as per the applicable project terms).
Residential work is generally collected on a deposit basis, typically 80% upfront and 20% on completion. As residential work represents a smaller portion of overall activity (approximately 10%), the overall cash/credit profile is weighted toward commercial credit and progress-claim payments

How could the profitability of the business be improved?

Profitability could be improved by increasing the volume and consistency of higher-margin work while reducing the current dependency on the owner as the primary constraint in sales and estimating. At present, the owner controls tender participation based on preference and capacity, which can limit the number of projects priced and secured. Increasing throughput at the enquiry/tender stage and improving utilisation of the workshop and installation teams would support stronger turnover and operating leverage.
• Add a part-time or full-time estimator/sales representative ("rep on the road") to widen the tender pipeline, follow up quotations, and reduce the owner bottleneck in pricing and business development.
• Increase the residential contribution (currently a minority of work) through targeted marketing to homeowners, developers and small builders, and by standardising pricing on common window/door ranges to improve quote turnaround time.
• Introduce a repairs and maintenance offering (e.g., roller and handle replacements, alignment, seal replacement, glazing call-outs, shopfront repairs). This can create recurring revenue, improve cash flow, and provide work continuity between large projects.
• Scale delivery on large projects through continued use of the established subcontract foreman arrangement and additional subcontract installation capacity where profitable, without permanently increasing fixed overhead.
Overall, the largest opportunity is to broaden the flow of tender invitations and smaller private jobs so that capacity is filled more consistently, while maintaining disciplined job selection and margin management to avoid low-profit projects.

Give a breakdown of staff/ functions/ length of service?

The business is supported by a small, settled team covering fabrication, glass preparation and installation, with the owner coordinating quoting, planning and administration. Key operational staff have been with the business for extended periods (predominantly since 2010 and 2016), contributing to efficient delivery and the ability to perform under high-pressure project environments.
• 2 x glass cutters: responsible for cutting and preparing glass for glazing requirements across projects.
• 2 x fabricators: responsible for workshop fabrication and assembly of aluminium frames and units.
• 4 x installers (two teams): responsible for on-site installation, fitment, sealing and completion of aluminium windows/doors and related products.
• Up to 4 additional workers (as required): brought in on an as-needed basis to assist during peak periods and increased workload.
• Project foreman (subcontract, as required): engaged on larger projects to coordinate and oversee site execution; this is a long-standing relationship in place since 2010.
The staffing structure is stable, with most key operational staff having been with the business since 2010 and 2016. This enables efficient delivery under high-pressure project timelines while allowing capacity to be flexed through additional labour and a subcontract project foreman on larger projects.

Do any have management potential?

No but a previous employee can be approached and will make for a good operational manager.

How involved is the Owner in running the business?

The owner is highly involved in the day-to-day running of the business and performs most key management and administrative functions. This includes handling inbound enquiries, preparing and submitting tender quotations, accepting work, planning and scheduling projects, allocating staff, procuring and ordering materials, and managing payroll. The owner also provides oversight of operational delivery by coordinating the workshop and installation teams and, on larger projects, engaging a long-standing subcontract project foreman to support on-site coordination.

When does the current lease end?

The premises are owned by the owner (who is the landlord). A new lease agreement will be made available to an incoming purchaser, with the lease term flexible and to be agreed between the parties. Rental escalation is proposed at 8% per annum. The lease amount to be charged has been included under business expenses. The current lease end date is not applicable/available as the premises are owner-let and will be re-papered under a new agreement on sale.

What are the trading hours?

Monday to Friday: Standard business hours
Weekends: Closed unless they are busy with big projects in which case they will work on Saturdays.

What are the main assets of the business?

2 x Toyota Hilux single cab pick ups.
Double head cutting saw.
Single head cutting saw.
Pneumatic crimper.
Copy router.
Glass ploish machine.
The complete asset list will be shared with serious buyers.

Which assets are on lease/HP and with whom?

None.

Strengths?

• Established position in the commercial, tender-driven market, supported by repeat invitations from long-standing corporate clients.
• Strong referral network with building contractors, quantity surveyors and architects, including inclusion on multiple supplier lists.
• Turnkey capability (measure/specification confirmation, fabrication, glazing preparation and installation), enabling control over quality and delivery.
• Stable and experienced core team (key staff largely in place since 2010 and 2016), supporting efficient delivery under project pressure.
• Operational scalability through flexible labour and a long-standing subcontract project foreman relationship for larger projects (in place since 2010).

Weaknesses?

• High dependency on the owner for enquiries, tender pricing, work acceptance, planning, procurement and payroll; this creates a capacity bottleneck and key-person risk.
• Project selection is influenced by owner preference/capacity, which can limit the volume of tenders priced and reduce revenue consistency.
• Revenue is weighted toward commercial progress billing with retentions, which can pressure cash flow and working-capital requirements.
• Limited diversification at present (low residential mix and no dedicated repairs/maintenance stream) reduces recurring income between large projects.

Opportunities?

• Appoint an estimator/sales representative to increase tender participation, improve quote turnaround time and build a larger, more predictable pipeline.
• Grow residential sales through targeted marketing and standardised product/price packages to improve margins and cash collections (deposits).
• Introduce a repairs and maintenance division (hardware replacements, adjustments, glazing call-outs and shopfront repairs) to create recurring revenue and improve continuity of work.
• Expand relationships with quantity surveyors, builders and architects to increase invitations to tender and secure preferred-supplier status on more projects.
• Improve systems and controls (job costing, variation management, procurement planning and scheduling) to protect margins and reduce rework.
• Leverage flexible capacity (subcontract foreman and additional labour) to take on larger projects without materially increasing fixed overhead.

Threats?

• Competitive tender market pressure may compress margins, particularly where competitors price aggressively to secure volume.
• Late payment, dispute risk and delayed release of retentions on commercial projects can impact cash flow.

What is the reason for the sale?

The owner has significant additional business interests, including two farms and a sizeable property portfolio, which require ongoing time and attention. As a result, the business is not currently receiving the level of focus required to fully realise its potential and scalability. The sale is motivated by the owner’s intention to reduce day-to-day operational commitments and focus on these other interests going forward.

Why is this a good business?

The business presents an opportunity to acquire an established, operating aluminium fabrication and installation operation with a proven presence in the commercial tender market and clear, identifiable upside under a buyer with capacity to drive growth.
• Established commercial pipeline: Approximately 90% of work is commercial and project-driven, typically secured via tendering, supported by repeat invitations from long-standing corporate clients.
• Strong referral network: Ongoing work is supported through building contractors requesting aluminium pricing/appointment, inclusion on QS supplier lists, and referrals from builders and architects.
• Turnkey capability: The operation provides end-to-end service (measurement/specification confirmation, fabrication, glazing preparation and installation), supporting quality control and reliable project delivery.
• Stable, experienced team: Core staff are long-serving (predominantly since 2010 and 2016), enabling efficient output and performance under high-pressure site timelines.
• Scalable delivery model: Capacity can be flexed through additional labour and a long-standing subcontract project foreman used on larger projects (relationship in place since 2010).
Location

Contact | Enquire

Tommie

Tommie Cronje

LocationSouth Africa, Gauteng

Preferred method of contact

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