Businesses for Sale in South Africa

Connecting business buyers to sellers is our business, and the Businesses4Sale experience is tailored to cater to everyone interested in buying a business. Whether you are a first-time buyer, looking to enter the market; a franchisor, searching for franchisees; or seasoned buyer looking to expand, our experienced team at Businesses4Sale will support you throughout the whole process. Businesses4Sale offers our clients professionalism, experience, expertise, and knowledge in the process of buying a business.

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Food/Hospitality

Cafe/Coffee Shop

Ref: 3368

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Quaint Coffee Shop and Deli

Western Cape (WC - Cape Town Region)

Asking Price

R 770,000

Annual Turnover

R 2,269,000

Monthly Profit

R 31,917

This well-known coffee shop with excellent visibility is situated in the middle of a trendy area in a suburb of Cape Town. This business is well located within walking distance to parking and other shops and restaurants. Customers can enjoy al fresco dining on the sidewalks or enjoy the kitchen feel of being inside. The exciting menu, great products, and excellent service attract customers from all around to share in the vibe. In a Post-Covid era, this business will provide you with a great opportunity to adapt to the modern world of hospitality. The popularity of this business is not going anywhere. Even with the success of this business, there is plenty of opportunities for growth. The well-trained staff add value to the business and will stay on with a new owner. The price excludes VAT and stock.
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Food/Hospitality

Retailer

Ref: 3346

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Rent to Own Home Appliance Franchise

South Africa

Asking Price

R 415,000

Annual Turnover

undisclosed

Monthly Profit

undisclosed

This franchise was established in 2012 in Western Cape and now wants to expand the network in South Africa. The business can be run from home or a small office with limited storage facilities. They offer all home appliances on a Rent to Own basis over a 12 month period. The franchisee can earn recurring income from the first month and grow the business in a short period of time. This is an easy to run business and an opportunity to earn extra income. The price includes home appliance stock goods to the value of R 115 000 (VAT inclusive). Franchisees must preferably have a suitable delivery vehicle at the commencement of business. The price excludes VAT
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Food/Hospitality

Catering

Ref: 3334

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Popular Mobile Function/Catering Business

Western Cape (WC - Cape Town Region)

Asking Price

R 2,510,000

Annual Turnover

R 1,388,610

Monthly Profit

R 63,645

Recession and Covid Proof Business! This is a very successful and profitable mobile catering company specializing in spitbraais and catering for functions. The business is currently based in the Garden Route and the demand for their services is so popular that they serve the entire Western Cape and surrounding areas. The business could be relocated anywhere. The company has built an outstanding reputation and as a result, they are popular for their high-quality food and excellent service in a time where catering for small groups is high in demand. They are equipped to cater to up to 1000 people! They cater at absolutely any venue, be it at home, work, or any indoor or outdoor venue. Whether it is a birthday party, wedding, private or corporate event, they can cater to all dietary requirements. Included in the offer are all equipment & vehicles used in the business, including a good pipeline of future bookings where deposits have already been paid. The asking price excludes VAT.
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Food/Hospitality

Restaurant

Ref: 3327

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Popular Family Restaurant for Sale

Western Cape (WC - Garden Route)

Asking Price

R 1,675,000

Annual Turnover

R 4,450,257

Monthly Profit

R 40,354

This family restaurant is popular for its relaxing, warm, and welcoming vibe and good food. It is based in a prime position in the Garden Route, Western Cape, South Africa. The secure in- and outdoor play areas are popular and allow parents the opportunity to relax while the little ones get rid of their energy. The venue is popular amongst sports enthusiasts where they can get lost in the laid-back atmosphere and family vibe. This restaurant is a popular venue amongst local residents, ensuring it has a fairly consistent monthly turnover. Here patrons can enjoy a spectacular mountain view, or grab a magazine and secure their spot on the comfy couch in front of the fireplace. If you have a passion for people and hospitality, and looking for a restaurant for sale, this is a great business that could give you the opportunity to live your dream life. You could choose to be involved part-time like the current owner, or be more hands-on and put your own stamp on this great business. The asking price excludes stock of ± R60,000 and VAT.
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Food/Hospitality

Fast Food Restaurant

Ref: 3319

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Seafood Takeaway for Sale

Western Cape (WC - Garden Route)

Asking Price

R 640,000

Annual Turnover

R 1,054,218

Monthly Profit

R 24,874

This clean and neat seafood takeaway restaurant serves everything - from your favorite fish and chips to calamari, prawns, fish burgers, and seafood platters. The takeaway business is based in the Garden Route, Western Cape, South Africa. Every meal is freshly prepared and can be enjoyed at the casual sit-down seating available at the venue or as a takeaway meal. The business is located in a prime position with ample feet traffic, good exposure, and lots of parking. The takeaway has a regular following because of its quality food which is good value for money. This is an uncomplicated business model that will make it easy for any entrepreneur to take over the business and succeed. The business has future growth potential. If you are a hands-on entrepreneur looking for a sustainable fast food business in the Garden Route, this is what you have been looking for. Do not miss out on this exciting opportunity. The asking price excludes stock of ± R15,000.
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Food/Hospitality

Restaurant

Ref: 3313

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Franchise Restaurant

Western Cape (WC - Garden Route)

Asking Price

R 1,750,000

Annual Turnover

R 2,715,838

Monthly Profit

undisclosed

You now have the opportunity to own a well-established (17 years) and fully operational franchised restaurant in the Garden Route as a going concern. This restaurant is offering a wide menu variety, specializing in steak dishes, for both the executive & family diner, with some new innovations added to their culinary traditions from time to time. This franchise brand concept has a strong family tradition with traditional booth seating and a comprehensive menu selection. They proud themselves in offering their customers exceptional quality and unsurpassed standards of service in relaxed surroundings. The business is in a prime location with ample parking and the venue offers private conference and meeting (VIP) rooms which makes it a popular destination amongst business people, families having a birthday and stork tea parties, etc. The restaurant is fully licensed and seats over 200 people, and at 50% capacity they can still accommodate 100 patrons. The opportunity is up for grabs as the owner passed away and the family has other business operations making it impossible for them to give this business the attention it needs to be profitable. The asking price excl VAT and stock of ± R15,000.
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Food/Hospitality

Restaurant

Ref: 3312

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Unique Restaurant in Cape Winelands

Western Cape (WC - Cape Town Region)

Asking Price

R 1,400,000

Annual Turnover

R 5,129,000

Monthly Profit

R 51,000

This well-located franchise restaurant in Cape Winelands offers the best food and a unique dining experience from a menu packed full of delicious dishes to satisfy a wide range of tastes. The restaurant offers great food at very competitive prices. This licensed restaurant has built up an excellent reputation over the 9 years and has a strong local repeat trade as well as a high level of walk-in customers. The takeaway service is very popular and the premises are on a very busy main road. The restaurant offers a wide and varied fresh menu including soup, noodles, and sushi. The price excludes stock and VAT
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Food/Hospitality

Franchise Restaurant

Ref: 3305

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Established Franchise Family Restaurant

Western Cape (WC - Garden Route)

Asking Price

R 1,750,000

Annual Turnover

R 8,223,470

Monthly Profit

R 36,212

This family restaurant is located in a very popular Garden Route Town close to the beach. The restaurant is in a shopping centre with a high volume of passing traffic. The menu includes many of South Africans best-loved dishes and the restaurant is well-loved by locals and tourists to the area. There are also many annual events in this town that bring customers from all over the country. The price excludes stock, franchise joining fee, and VAT.
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Food/Hospitality

Franchise Restaurant

Ref: 3304

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Famous Franchise Family Restaurant

Western Cape (WC - Garden Route)

Asking Price

R 2,650,000

Annual Turnover

R 13,652,500

Monthly Profit

R 107,421

This famous franchise family restaurant is a major attraction for locals and also for a large number of tourists to this beautiful Garden Route town. The restaurant has beautiful views and is located at many other shops that contribute to a large number of visitors to this area. The menu caters to the tastes of young and old and is, therefore, a popular dining spot. The restaurant is fully licensed and the lease has just been renewed for another 5 years. The price excludes stock, VAT, and franchise joining fees.
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Food/Hospitality

Retailer

Ref: 3291

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Speciality Bakers Shop

Western Cape (WC - Cape Town Region)

Asking Price

R 1,300,000

Annual Turnover

R 1,739,495

Monthly Profit

R 35,000

This well-established business offers a wide variety of services to the public and trade alike. The store supplies a vast selection of baking ingredients and accessories. products include edible prints and cake toppers as well as sugar art. Baking utensils and cake molds are popular products that are supplied. The hiring of cake tins and stands is available. Finished novelty cakes are supplied for all functions and are prepared on-site. The options include cakes, cupcakes, and specialty baking to cater to customers needs. Regular workshops are hosted to pass on the knowledge and are a fun element to interact with the client base. This is an easy to run business offering a niche offering with very little local competition.
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Food/Hospitality

Restaurant

Ref: 3289

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Beachfront Restaurant with Exquisite Views

Western Cape (WC - Garden Route)

Asking Price

R 15,000,000

Annual Turnover

undisclosed

Monthly Profit

undisclosed

Large, welcoming, modern restaurant with inside and outside seating and fabulous views of the ocean now up for grabs! This fully licensed restaurant is based in the Garden Route, Western Cape, South Africa offering stunning food, excellent service, and exquisite views of the ocean. The kids play area makes this a popular family restaurant. The business enjoys good repeat trade from the locals and holidaymakers to the area. This restaurant is perfect for a family or working partnership that is looking for a business that offers value and a prime location. This restaurant offers the desired sought-after prime seafront trading location in a popular area. The asking price includes the building and excludes stock and VAT. If you have been dreaming about a lifestyle business on the beachfront, then dont miss out on this great opportunity!
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Food/Hospitality

Supermarket

Ref: 3281

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Supermarket and Liquor Store

Western Cape (WC - Cape Town Region)

Asking Price

R 10,200,000

Annual Turnover

R 61,000,000

Monthly Profit

R 120,000

This franchise supermarket and liquor store are in a quaint small town 150 kilometers north of Cape Town. The store has recently been revamped and boasts of the new modern look of the franchise. This new look contributes to an increase in monthly turnovers and offers a buyer the opportunity to be the owner of a growing established business at a reduced price. The turnover increase for 2021 average 8.5%. The business is an opportunity for a buyer who wants to enjoy the tranquility of a rural town as well as the benefits that this growing business offers. The price excludes stock of +-R 2 500 000 and VAT.
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Food/Hospitality

Restaurant

Ref: 3272

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Popular Portuguese Restaurant

Gauteng (GP)

Asking Price

R 1,395,000

Annual Turnover

undisclosed

Monthly Profit

R 36,428

This restaurant has excellent reviews with regards to the food, friendly staff, and vibe. A fully licensed restaurant that offers sit-down as well as delivery service. Sitting on the deck is perfect for those summer nights that offer beautiful sunset views in the evening. It has the potential to grow and it is the ideal business for the entrepreneur who is ready to take the restaurant to the next level. The selling price of R1 395 000 excludes stock of +/_R50 000.
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Food/Hospitality

Takeaway Food

Ref: 3265

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Quick Serve Restaurant Chain for Sale in Mauritius

International Opportunities

Asking Price

R 28,000,000

Annual Turnover

R 24,415,602

Monthly Profit

undisclosed

Are you thinking of immigrating to Mauritius? You can now become the new owner of the world’s largest quick-service restaurant (QSR) chain in Mauritius and one of its most recognized brands in the world. The global fast-food market in the QSR space is forecasted to grow by 5.16% in 2021. This business operation consists of several outlets based in prime positions. The franchise model offers simple operations, low overhead costs, and extensive training and ongoing support. This franchise business is poised to become the largest food chain in Mauritius. This franchise business is optimally poised to become the largest food chain in Mauritius in 7 years (in terms of footprint). This fast-growing business added another 4 outlets to their operations during 2020, despite Covid. If you are looking to relocate your family to the beautiful Republic of Mauritius, this profitable business offers a sustainable income to ensure your family enjoys a quality lifestyle. The asking price of US$1.9m excludes stock of ± R320,000, lease deposits (±R1.5m), and VAT.
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Food/Hospitality

Takeaway Food

Ref: 3258

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Established Pizza Outlet For Sale

Western Cape (WC - Cape Town Region)

Asking Price

R 586,250

Annual Turnover

R 1,044,010

Monthly Profit

R 23,680

This Pizza outlet has been servicing this vibrant and growing neighborhood for more than 14 years. Situated in a community-based retail cluster with ample parking, this establishment boasts a loyal and regular customer base. A small seating area is provided, but the bulk of the orders are for collection or delivery. This is a perfect opportunity for an energetic new owner to capitalize on this pandemic resistant and growing business.
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Food/Hospitality

Takeaway Food

Ref: 3225

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Two Non-Franchise Fast Food Businesses

Western Cape (WC - Cape Town Region)

Asking Price

R 4,350,000

Annual Turnover

R 4,800,000

Monthly Profit

R 134,476

These two shops are about 300 meters apart in one of the most beautiful rural towns in the largest wine-producing region in the Western Cape. Situated in the shadow of the majestic Langeberg Mountains and surrounded by more than 50 wine farms. This town also forms part of the longest wine route in the world. These busy shops are easy to manage with a limited menu of mainly three products. Both shops are well located to serve two different markets. The owner decided to run two separate businesses because of the high volume of foot traffic. These businesses offer a sustainable income to the owner because of low overheads and the constant flow of customers. This price for both businesses excludes stock of +-R30 000 and VAT.
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Food/Hospitality

Restaurant

Ref: 3224

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Established Wimpy Franchise For Sale in Cape Town

Western Cape (WC - Cape Town Region)

Asking Price

R 1,350,000

Annual Turnover

R 4,273,316

Monthly Profit

R 32,051

• Profitable and well established Wimpy fast food franchise for sale in the Western Cape ,Cape Town • Complimented by well trained friendly staff and regular clientele • Situated in a well-known shopping mall in a prime location • Secure with ample underground parking available • The centre has a generator to ensure continued trade during load shedding • Servicing a high-density vast residential area • Contracted for delivery via Mr D and Uber eats • Kids play area to entertain the young ones all year round • Selling price is excluding VAT and stock of +/- R 30000.00
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Food/Hospitality

Restaurant

Ref: 3223

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Wimpy Franchise For Sale in the Western Cape

Western Cape (WC - Cape Town Region)

Asking Price

R 3,290,000

Annual Turnover

R 4,599,523

Monthly Profit

R 57,155

This Wimpy restaurant is situated in a prime position with very little immediate competition.The mall is the primary shopping destination for the vast residential area and boasts a host of national retailers which ensures a constant flow of feet throughout the year. • Profitable and well established Wimpy fast food Franchise in the Western Cape ,Cape Town • Supported by one of the leading franchises in South Africa ensuring • Situated in a prime location within a busy shopping mall with lots of parking • Kids play area to entertain the young • Selling price is excluding VAT and stock of +/- R 30000.00
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Food/Hospitality

Restaurant

Ref: 3212

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Famous Portuguese Restaurant

Western Cape (WC - Cape Town Region)

Asking Price

R 1,650,000

Annual Turnover

R 3,800,000

Monthly Profit

R 60,000

This well established and thriving fully licensed restaurant in one of the most vibrant areas in Cape Town is waiting for a new owner. With relaxed lockdown regulations, more visitors will visit Cape Town during the coming holiday season and now is an ideal time to buy this business. The position of this restaurant is ideal to attract the increased number of visitors from the Cape Town Stadium and with all the functions scheduled for 2022 its now the time to become the owner of this popular restaurant! The owners believe in serving the best traditional Portuguese food in this very popular meeting place. All meals are prepared in order to offer the best quality product to every customer. This business offers a lot of growth potential with new developments in the area. The price excludes stock of +-R30 000 and VAT.
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Food/Hospitality

Bar / Pub

Ref: 3146

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Best Pub in Town

Eastern Cape (EC)

Asking Price

R 3,345,000

Annual Turnover

R 2,201,584

Monthly Profit

R 93,047

This vibrant and family-friendly Pub started in 1985 and has been with the owners for 25 years. Set in Port Elizabeth it is surrounded by 5 large suburbs and is known as one of PE’s best Pubs. This is an English-style pub with a full array of alcoholic beverages and slot machines to cater to all patrons. The owners closed the kitchen but that can easily be re-opened with the equipment on site. This is a favorite watering hole for the surrounding suburbs as well as a party destination over the weekends. If you just want to wind down after a heavy day or come through with your friends for a good time, this is the destination pub. Ample parking, easy access, and a warm and inviting atmosphere make this a fantastic choice to buy. Looking to own a pub that is well-established, profitable, and renowned? Then this is an easy decision to make. The building is included in the selling price. The selling price excludes VAT and stock of R55,000.
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Food/Hospitality

Restaurant

Ref: 3087

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Profitable and Established Taverna Group

Western Cape (WC - Cape Town Region)

Asking Price

R 6,500,000

Annual Turnover

R 19,410,741

Monthly Profit

R 312,765

• Family owned popular restaurant group first opening it’s doors in the 1980’s • Consisting of 2 branches each with their own unique atmosphere • Location is key with central positions ensuring continuous passing traffic and feet through the door • Offering a wide variety of Mediterranean dishes and mouth-watering desserts • Offer catering for special occasions, corporate functions and large bookings • Both branches are streamlined and efficiently running ensuring profit from day one • Offering an excellent return on investment
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Food/Hospitality

Supermarket

Ref: 3076

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Profitable Supermarket and Liquor Store

Western Cape (WC - Cape Town Region)

Asking Price

R 13,500,000

Annual Turnover

R 94,000,000

Monthly Profit

R 188,000

You can become the owner of one of the best supermarkets in the West Coast! This is a great opportunity to invest in a solid retail business with an excellent future for long term growth. This profitable franchised supermarket and liquor store has been established for more than 25 years. The business mostly cater to the local community and surrounding areas but the town is also a popular destination on the West Coast route. The area was also identified as one of the important grow areas on the West Coast. This is an opportunity to invest in a quality business and to share in the growth that is taking place in the area. The price exclude stock of +-R3m and VAT.
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Food/Hospitality

Catering

Ref: 3075

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Event Equipment and Service Hire Business

Western Cape (WC - Cape Town Region)

Asking Price

R 2,400,000

Annual Turnover

R 3,600,000

Monthly Profit

R 80,000

This business is considered by many as a leader in this industry in Western Cape and rated as one of the top 10 wedding suppliers. Growth opportunities are substantial with many events postponed during Covid-19 and bookings are already received for 2022. Planning an event can be a nightmare and that is why there is a demand for the services of a business that specializes in equipment and services hire. The business is running very successfully for more than 8 years. Its mission is to provide customers with high-quality products and services at cost-effective prices. They cater to all needs related to engagement, wedding, general functions, and conferences. The price excludes equipment and stock of R1,6m and excludes VAT.
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Food/Hospitality

Restaurant

Ref: 842

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Two Wimpy's in Cape Town

Western Cape (WC - Cape Town Region)

Asking Price

R 4,625,000

Annual Turnover

R 8,872,839

Monthly Profit

R 89,222

These two well established businesses offer the perfect opportunity to join one of South Africas leading franchises. Both establishments offer a turnkey operation that ensures instant rewards on your investment. The prime locations ensure a steady flow of feet and are serviced by well trained and friendly staff. • Two profitable and well established Wimpy’s in Cape Town • Supported by one of the leading franchises in South Africa • Situated in prime locations within busy shopping malls with lots of parking • Kids play area also available • Selling price for is excluding VAT and stock of +/- R 60000
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Food/Hospitality

Restaurant

Ref: 803

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Two Well Known Family Restaurants

Western Cape (WC - Garden Route)

Asking Price

R 3,850,000

Annual Turnover

R 21,876,000

Monthly Profit

R 143,633

There is no better time than now to invest in these restaurants at this price! The two well-known franchise restaurants in the Garden Route are well situated and well known by local residents as well as tourists. These two restaurants are waiting for a new owner with a passion for food and customer service to experience the benefit of growth in the tourism industry. Covid had a negative impact on these restaurants and that have been discounted in the price, but both are already recovering. No major revamp will be necessary for the near future. This is a perfect opportunity for any buyer who wants to live in this beautiful town close to the sea and also the beautiful scenery of the Garden Route. The price excludes stock of +-R150 000, VAT and Franchise joining fee.
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Food/Hospitality

Restaurant

Ref: 634

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Exclusive Top Rated Restaurant

Western Cape (WC - Cape Town Region)

Asking Price

R 1,250,000

Annual Turnover

R 3,100,000

Monthly Profit

R 60,000

Rated in the top 10% of restaurants worldwide and situated 100 meters from the ocean and outlook point, this little gem showcases dedication from preparation to plate! This is a superb opportunity to acquire an awarded Travelers Choice Winner restaurant in the Overberg. The food has a familiar flavor but yet an exceptional savor. The intimacy of this little restaurant makes it a perfect choice for corporate functions. The restaurant is also well supported by many guest houses in the vicinity. The business has a stable returning client base for the unique home-style food and the relaxing ambiance of the restaurant. Sunday meals are very popular for all the local people of this beautiful coastal town. The price excludes VAT and stock.
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Confidentiality Agreement

In consideration of Businesses4Sale South Africa entering discussions relating to the possible acquisition of an interest in a business on my behalf, I hereby agree as follows:
  1. I hereby give my consent for the processing (use) of my personal information by Businesses4Sale South Africa to assist me with the purchase of a business or property.
  2. Not disclosing any information, including that the business is for sale and to treat as totally confidential the identity of each business quoted to me and any details as to its operation or financial accounts.
  3. Taking all reasonable precautions to protect the confidentiality of information made available to me in the course of any negotiation and eventual transaction.
  4. That all information is received for no other purpose than the evaluation of the investment potential of the business.
  5. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorized in writing by the Vendor or his agent.
  6. Not to approach any Vendor of any business quoted to me by Businesses4Sale South Africa or its staff, customers, or suppliers without prior arrangement with the Seller or his agent and to refer all queries through the relevant Businesses4Sale South Africa representative/agent.
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  10. In the event that a suitable business opportunity is found in using the services of a Businesses4Sale South Africa and in the subsequent event that I should wish to present an offer to purchase such business, then before the commencement of the “Offer to Purchase” process, and should I be called to do so, I agree to willingly submit a consumer credit report.
  11. If I decide not to proceed with the investment, I agree to immediately return to Businesses4Sale South Africa all written information supplied and retain no copies.
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Questions about buying a business in South Africa

Most of the businesses for sale with us are valued on the following;

  • The amount of money they earn
  • The desirability of the industry
  • The associated risk factors

Higher prices will be paid for businesses in more desirable industries that are operating in a market perceived as low risk. These types of businesses are in strong demand. Therefore, the value of the business will be greater than for one in a less sought-after industry and perceived to have a higher risk factor attached to it, even though both businesses may make the same amount of money.

Most small owner-operated businesses are valued according to the cash surplus available to the owner. Depending on the industry this will vary. The amount will depend on factors such as the industry, location and length of time in business.

Larger businesses are valued on either a return on investment (ROI) or a price to earnings ratio (PE). Once again this will vary depending on the industry and the amount of net profit generated by the business.
When you have your first meeting with one of our business brokers, they will give you an overview of the values of businesses within the industry sectors of interest to you.

Some industries are very sought after, and newly listed businesses sell quickly. To ensure you are aware of new listings we provide a unique service by sending you an automatic email with details of any new listings that match the criteria you have pre-selected when registering for this exclusive service.
Our business brokers can register you, or you can do it online through the Register toolbar.
Many of the businesses we list are sold before they are advertised. By registering to buy a business, you will receive priority notification of all appropriate new listings from any one of our team of brokers, not just from the broker you have initially met with.

If you are serious about buying a business, you should make an appointment with one of our specialist business brokers who is knowledgeable in the industry sector that interests you. Our business brokers specialise in the sale of businesses in which they have prior industry experience thus giving you access to industry-specific knowledge. Your broker will ask specific questions in order to find the business that is best suited to your requirements. And don’t forget to search for businesses for sale by using the Businesses4Sale search bar.

You will be asked to sign a Deed of Confidentiality before receiving confidential information on any business you are contemplating buying. This protects the owner of the business by ensuring the information you receive will be treated as confidential and not passed on to other parties. Business owners want to be assured that the information given out to a pre-qualified buyer will be treated in confidence.

Once you have decided to buy a business, you will benefit from an initial meeting with one of our brokers, and they will have your name in mind when any new business becomes available.

When you initially look at a business, certain information will be supplied. However, in some cases, the owner of the business will be reluctant to reveal too much about the business until an offer is made. Many aspects in the operation of a business are commercially sensitive and confidential, thus a business owner would not be wise to disclose all until a prospective purchaser has indicated a serious intention to purchase by making a conditional offer.

 

A conditional offer is normally subject to the purchaser performing due diligence, a process whereby you as the purchaser requests, for scrutiny, specific information on the operation of the business. The owner will supply this information under due diligence. The buyer must maintain the strictest of confidentiality through this process and must not disclose any information to other parties except any professional advisors they are using in the process.

 

The due diligence process is for the benefit of the purchaser, giving you time to complete the verification process. If satisfied with the end result, the agreement proceeds, and you become the proud owner of your new business. If, however, you are not satisfied with the results of the due diligence, then the owner is advised accordingly, and the agreement comes to an end. The deposit money held in trust is refunded in full.

Before you begin looking to buy a business the first step is to work out what money you have available. There is no point in looking at businesses for sale that are beyond what you can afford. Calculate how much cash you have available and what other assets such as property you could borrow against.

 

When dealing with a business broker tell them how much you have to invest, then they will direct you to suitable businesses within your price range. The business broker will also know which businesses for sale are more suitable to finance, or if the current owner is prepared to finance some of the purchase price. If the broker knows what funds you have available, this will help them to help you.

 

With some types of business, it can be difficult to borrow money using just the business as security, due to the difficulty a bank may have in securing its loan. i.e. a retail store’s asset is the stock which it is constantly selling off. Therefore, the bank would not have any actual security. If you have a house or investment property, you may be able to use this as security for a mortgage to buy the business, thereby requiring very little actual cash.

Once again, buying a business through a broker will help you in this process. The business broker will explain the process to you and guide you through it.

The business broker will prepare the sale and purchase agreement for you. This is the document used for making an offer to purchase the business and needs to include special conditions to protect you throughout the process. Likewise, the owner of the business will want to know that the confidentiality of his business is protected through this process.

 

The agreement contains conditions that protect you, the purchaser and also the owner of the business. The document details information regarding the business along with the price you are offering and the special conditions relative to the offer. At this stage, you will also need to pay a deposit. If you are buying through a licenced Real Estate company such as Businesses4Sale the deposit is held in a trust account until the agreement becomes unconditional. If the conditions upon which you are prepared to buy the business are not met, then your deposit is refunded in full without any deductions. The trust account is audited and operated under very strict legal requirements.

 

Before signing the agreement, it may be advisable to have your lawyer review the agreement. When choosing a lawyer, it is important to use one familiar with the process of buying a business. Business brokers are not qualified to give legal advice, and likewise, lawyers are not experienced in selling businesses. Your lawyer will be looking after your interests just as the lawyer for the seller will be doing for their client, and the agreement must be workable for both parties. Ultimately the lawyer works for you, and you must have a say in everything that is done. Once you have signed the agreement, it is then presented to the business owner who will either accept it or make the necessary alterations before returning the agreement to you for your acceptance or further alteration. This is called negotiation and the agreement may go back and forth several times until both parties are in agreement. This is the work of the business broker who will liaise between both parties and often, through experience, bring solutions that can result in both parties reaching an agreement.

Gathering all the information you need to make an informed decision should start with the basics.

 

Price – is the business within your budget and can you fund the purchase?
Location – is the business suitable for you and is it in a good area for this type of business?
Lease – how long is the lease and are there rights of renewal (ROR)?
Rent – how much is the rent and other associated outgoings?
Staff – how many employees (full-time or part-time)?
Income – how much money will you earn? How long has the business been operating?

Confidentiality is paramount, and your business broker will arrange a time with the business owner for you to inspect the business.

 

A physical inspection of the business should come at a time when you have considered the financial information given to you, are satisfied with this and wish to proceed further. Remember, however, that the owner of a business will be very sensitive about your visit. On the one hand they will want to provide you with all the information you require, yet on the other hand, they will not want the staff to know why you are really there. Please respect this sensitivity and have the courtesy not to embarrass the owner.

We are often asked what the perfect business is. There is no perfect business as each business and industry has its own unique set of challenges for the owner. It is important to buy a business in an industry that you relate to and believe you can learn and be comfortable with. We have sold businesses where the owners have moved into an industry with no experience but they could relate well to that industry. Look to buy a business with an eye towards what you can do with it, how you can improve it and how you can use your ideas and enthusiasm to make it more profitable and productive.

 

A new owner can sometimes see potential in a business that the current owner can’t see simply because of the new owner’s skills. Whatever the type of business, make sure that it will be fun for you and you will enjoy what you do.

A professional business broker can provide you with many different business opportunities including some that you may never have considered. Frequently we have people buying businesses they had never considered buying until the business broker explained how this business could be suited to them. All our brokers have owned their own businesses, understand and relate to the process you as a buyer are going through and can provide you with helpful information on the business you are considering buying.
An experienced specialist business broker has industry knowledge that can assist you when considering buying a business and will normally have a selection of businesses for you to compare. Our brokers have prepared the necessary information, gathered financial documentation and compiled it in an information memorandum for you to review.

 

There is no cost to you in buying through a business broker; their fee is paid by the seller.

It is important to have a business broker who is knowledgeable in the industry you want to buy into. Our brokers specialise in business categories that they have experience in, thus giving you a business broker knowledgeable in that industry and experienced in the process of buying and selling a business.

Please use the search bar on the top right-hand side to find that special business you are looking for and Register with us for regular email updates. If you would like an Advanced Search click here. You can also contact a Businesses4Sale broker directly and enhance the probability of finding the right business for you.

When you make contact with our company, ask for the broker who specialises in the type of business you are seeking to buy. At any one time, Businesses4Sale has over 220 businesses for sale.

It is important to have a business broker who is knowledgeable in the industry you want to buy into. Our brokers specialise in business categories that they have experience in, thus giving you a business broker knowledgeable in that industry and experienced in the process of buying and selling a business.

Please use the search bar on the top right-hand side to find that special business you are looking for and Register with us for regular email updates. If you would like an Advanced Search click here. You can also contact a Businesses4Sale broker directly and enhance the probability of finding the right business for you.

When you make contact with our company, ask for the broker who specialises in the type of business you are seeking to buy. At any one time, Businesses4Sale has over 220 businesses for sale.

Business Support Toll-Free Number:  087 820 4600

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