Summary

The discerning buyer will acquire a business that has 44 haulage trucks, 60 trailers, 1 staff bus and two properties; the first being the yard which on a land area of 12,882 sq. mt and the second being a warehouse on 4,000 sq.mt. The business has a good reputation in the market and is well known in the mining, livestock and bulk grain product transportation sectors. Over the last 26 years owners have developed a well recognised brand within the industry.

1. History Background

Fully describe the business's activities

The business moves bulk materials on a contract basis within Zimbabwe and across borders into South Africa, Zambia, Mozambique and Botswana. Historically the business moved livestock, minerals and bulk grains. The business is well recognised brand in the haulage transport industry.

How long has the business been established

26 years

How long has the owner had the business

26 years

What steps are in place to solve "load shedding" problems

A generator is in place

What is the average KW usage

80 KwH

2. Present Market

How does the business operate on a daily basis

The business receives calls from customers who need haulage services and there are sales reps who market the business. The owner is actively involved in customer acquisition and the negotiation of new contracts.

How are the clients attracted to the business

Print media, word of mouth and call ins

What Advertising/Marketing is carried out

Print media, visiting captive clients and potential clients

Does the business have any contract work

Yes. In the cement industry and in the NGO sector

What competition exists

Other big transport companies in Zimbabwe and South Africa

What are the seasonal trends

The traditional peak is August to April and the low season is May to July

3. Financial

Is the business VAT Registered

Yes

What VAT documentation is on file.

Yes

Are there up-to-date Management Accounts available

Yes

What Balance Sheet and Income Statements are available

2009

What percentage of of the business is cash/credit

Cash 10% and Credit 90%

What is the age analyse of the debtors book

NGO are in 30 days and other creditors 14 days

How could the profitability of the business be improved

Injection of working capital

Is Seller finance available and for what amount

None

What is the payback period

44 months

What is the ROI

24% per annum

4. Staffing

What is the total staff complement

146

Give a breakdown of staff/functions/length of service

Attached

Do any receive special perks or incentives

Yes. The management team

Are they on contract

Yes

Do any have management potential

Yes

How involved is the Owner in running the business

The business is owner run

5. Premises

When does the current lease end

The sellers own the land through another company so no formal lease

Is there an option of renewal & what period

Not applicable as land come with the sale

What is the annual escalation %

Not applicable although the seller is willing to discuss a lease if the property is excluded from the sale

What are the trading hours

8am to 5pm

What is the square meterage of the business

12,822 sq. metres

Is a copy of the lease available

No

Do you require a licence

Yes. Transport operator's licence is in the name of the company

6. Assets

Is a full asset list on file

Yes

Are any items not included in the sale

A Jeep belonging to the owner

What is their overall condition

Good

Do any require repairing

Yes. Repairs on the horses and trailers are carried out from time to time due to the nature of the business.

How have they been valued.

Directors valuation and sum insured from Insurance brokers

Are copies of agreements available

Yes

Are they presently insured

Yes

7. S.W.O.T. Analysis

Strengths

(1) Strong brand that is well known in the market (2) Good reputation (3) The size of the fleet puts the company at an advantage for large contracts (4) The company fleet is standardized so efficiencies are high.

Weaknesses

(1) Lack of working capital to replace older trucks

Opportunities

(1) Growth into northern markets and larger cross border contracts .e.g. Chrome, Platinum through acceptable credentials.

Threats

(1) Unacquitted CD3

8. Reason For Sale

What is the reason for the sale

The seller is retiring because of age

9. Conclusion

Why is this a good business

It is large business with a good brand

What is the price plus stock and the net profit

US$5,000,000.00 | Profit per month US$100,000.00