Link Business

Profitable established Transport/BEE opportunity

R17,000,000Pretoria - CenturionListing: #13175


Pretoria - Centurion businesses for sale 


R17,000,000

Transport/Distribution businesses for sale
Refer to Broker


About this business for sale

Profitable established Transport/BEE opportunity

This very profitable and reputable Gauteng based transport company has been in operation and owned by a group of three Sellers for the past nineteen years.

The business operates on a national basis as well and to a lesser extent in the immediate neighboring countries.

Two of the three owners are over 60 years old and wants to retire while the other one will pursue other interests.

The company has signed contracts with prestigious customers but main income is derived from being listed as non-contract but preferred operators with a number of large vendors.

Collectively, significant income is derived from a well-established customer base, reflecting trust and loyalty for the quality services provided.

Sellers Discretionary Earnings, also known as EBPITD (Earnings before Proprietors Compensation, Interest, Tax and Depreciation) based on historical trading up to February 2017 amounts to R852,000 per month, resulting in a ROI of 60% and payback of 20 months. Sales for the twelve months ending Feb 2017 compared to prior year is 10% higher notwithstanding difficult trading conditions in a depressed national economy. 


The asset base has been valued at +- R11,155m and includes 22 vehicles, two forklifts and +- R580k for Other/Office Equipment/Small Tools, totaling R11,735m. Vehicles are replaced on a fairly regular basis and excellently being maintained on an outsourced basis.

Premises utilized are rented and the day-to-day management of the business is mainly undertaken by the one Gauteng based and to a lesser extent by the one Cape Town based Seller.

Opportunities to grow the business include;

Marketing up to now has only been by good reference and word-of-mouth however, an incentivized rep would add value.

Further exploitation of longer distance trips into neighboring Africa countries.

Sales and income over the last 4 years has been strong reflecting customer’s satisfaction and loyalty coupled with good controls and efficient fleet utilization strategies.

The business can easily be taken over and incorporated with an existing transport business to achieve greater synergies and improved efficiencies. The business is also well suited to benefit from BEE owners that will enable other corporate opportunities.

 

 

 


 

Centurion
leon.bahlmann@linkbusiness.co.za
Mobile Only
082 600 3848

Leon Bahlmann