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Licence For Manufacturing And Distribution
Location South Africa
Asking Price Range < $250K
Gross Revenues $1000000
Net Profit / Cash Flow $500000
Cash Flow Type EBITDA
Seller Finance Yes
Year Established 1983
Number of Employees 6 - 9
Relocatable Yes
Number of Employees 6 - 9
Real Estate Owned
Training Technician visit for first assembly.
Reason for Sale Market expansion.
Description We are a leader in North America since 30 years in the rotating displays industry. We are presently selling one Licence for manufacturing and distributing our products in South Africa.
The Licensee has an exclusive territory (South Africa) and can proceed 3 different ways:
1. Distribution only, the licensee buys finished products from us and distribute them on the local market. Profit of 30%+
2. Assembly and distribution. In addition of distributing the products, the licensee does the final assembly of the displays in his facilities. Profit of 37%+. You also save 60% to 75% in shipping cost. We supply everything you need except the basic tools for assembling the units.
3. Manufacturing, assembly and distribution. In addition from number 2, you also manufacture the larger and heavier steel parts in your shop or with local sub-contractor. We supply the mechanical drawings for the parts you will fabricate, we also adapt those drawings to the material available in your area (from imperial to metric). As an example, for the car rotating display model Hipower, you only have 4 parts to built, we supply all the rest with electrical parts suitable for the South African market Profit of 45%+ with even cheaper cost of shipping.
You can always start with distribution only and then move to assembling and then manufacturing. In numbers 2 and 3 we will send one of our technician to help you with your first assembly.
We do not charge any royalties on the products you sell, but you have to buy the parts kit from us for all the models of rotating displays.
The licence fee is 420,000 ZAR and is valid for 5 years. It is then renewable yearly at 30'000 ZAR per year.
We can finance up to 60% of the licence cost at 8.75% interest for a maximum of 24 months.
We can offer you a line of credit for your orders payable 90 days after shipping. Subject to credit approval by EDC Canada.
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