Profitable Import/Export Freight Opportunity
About this business for saleProfitable Import/Export Freight Opportunity
One of South Africa`s well known taxidermists based in Gauteng which has been operating for 65 years , want to sell their specialist “Air and sea freight” logistics company dealing with the import and export of trophy`s to/from SA for the last 16 years, to concentrate entirely on their taxidermist operations.
This specialist freight business offers a core competency service in the conveyance of wildlife products, furniture and cosmetics with established communication networks and distribution channels throughout the USA, Europe and Africa in all modes of air, land and sea transportation.
The organization and distribution of supplies and services for complex operations requires ingenuity and practical applications and as result of this, it offers and provide a collaborative and logistical solutions-driven platform to partner their clients` business needs. The result of this philosophy is that fixed ,long term contracts constitutes the business with the motto “We win clients for life” and the business is capable of acting pro-actively and managing any challenge within the freight logistics market wherein they operates.
Opportunities for further growth lies amongst others to incorporate this profitable freight business opportunity with other corporate services relating to freight services as well to exploit new freight opportunities over the medium/long term.
The following features of this freight business opportunity on offer, needs to be highlighted:
*It’s a small business with Tax clearance certificates.
*The business model is small enough to incorporate it into a freight company without employing additional employees and thus increasing turnover/profit.
*All business is COD and FOREX, all funds paid for in advance before exporting so there is very little risk associated with retrieving funds like normal business have with accounts. This means liquidity and cash flow for operations especially if a buyer have other freight like import or corporate clients that pay on 30 to 60 day payment terms. Furthermore, the Forex being mostly US dollars can be put in a US dollar account and used to pay for import shipments, which is far better than paying for imports with SA rands.
*Only the book value would be purchased as the assets are negligible.
*No other freight company can come in and take the business away from the freight business on offer. The market is captured and is well maintained and looked after. This means instant control of the cargo - - thus guaranteeing sales and revenue for services rendered to the new Buyer.
*Regarding cargo volumes, the following issues is worth mentioning:
o The volumes are easily handled and its highly lucrative cargo, which earns foreign exchange and is very favourable in the current economic climate in South Africa. As the saying goes “Quality business is better than quantity “and the owner has experienced that since being in operation and would not have been in business for 16 years if the cargo volumes were not sufficient.
o The cargo belongs generally to very wealthy private individuals, the owner hardly ever have any cargo consignments abandoned as nearly all the clients do pay for their cargo.
o The taxidermist department get all the cargo crated, permits applied for and documents, etc. ready to go. That means if a buyer /entity purchase the import/export
freight business, they immediately have turnover. Most freight companies struggle to collect payments from clients.
The purchase price for this freight business to have the guaranteed import/export book for five years, is R1 750 000 and the owner is also prepared to stay on with a new buyer for 6 months on a consulting basis as well as to assist with training.
The 600□2 warehouse on the premises as well as office accommodation on the premises can be rented at R10 000 plus VAT per month, or the new buyer can use his own warehouse/offices. The owner is also prepared to negotiate with the buyer to buy the ISUZU FRR500 5 ton truck (2000 model) at a price of R120 000 or if wishes, to negotiate a deal to rent it and then been charged per kilometer. The owner is further prepared to negotiate the driver’s salary on a 50% basis with the new buyer as well.
The average monthly calculated EBPITD for the 33 month period 3/2014 to 11/2015 was R60 191 and represents a ROI of 43.3% and full financials will only be made available to serious buyers.
For further information, contact the listed broker.