Fully describe the business's activities?
This business consist of a petrol station, 24 hour quick shop, supermarket and liquer store situated in the North West Provence. As it is a white site they are able to source petrol at the lowest price. It is situated on a main road just outside town as part of a centre that also has a butchery and a liquor store. Three ATMs attract additional clientele. As they provided ablution facilities with showers for truck drivers and are in the process of building a weigh-bridge trucks prefer this petrol station.
How long has the business been established?
The business was established by the owner in 2009.
How does the business operate on a daily basis?
The petrol station and quick shop is open 24 hours a day with employees working in shifts.
How are the clients attracted to the business?
Truck drivers support the station as it is on the main route to the platinum mines and they have facilities such as showers for the truck drivers to use. The trhree ATMs, well stocked supermarket and butchery attract many customers. They are also the cheapest gas supplier in town.
What Advertising/Marketing is carried out?
Word of mouth and the lowest diesel and gas prices in the area.
Does the business have any contract work?
About 20 pre-paid petrol accounts
What competition exists?
Other petrol stations in town.
What are the seasonal trends?
Relatively stable income through the year - December and January is slower as most businesses closes down over the festive season.
What is the monthly litres?
430 000 liters per month
Is the business VAT Registered?
What VAT documentation is on file?
All that is required
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
Cash 60% Account 40%
What is the age analysis of the debtors book?
The accounts are paid weekly. If an account is not paid the account is stopped.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1 x Office Manager 1 x Shop Supervisor 5 x Cashiers 1 x Petrol Supervisor 10 x Patrol attendants
Do any receive special perks or incentives?
Are they on contract?
How involved is the Owner in running the business?
The owner is 100% involved
When does the current lease end?
The current owner owns all the buildings including the petrol station. He will rent out the facilities for the petrol station and the supermarket at R90 000 per month.
Is there an option of renewal & what period?
The new rental agreement to be concluded is open for negotiation.
What lease deposit and/or other surety is required?
Will be negotiated
What are the main assets of the business?
Fridges, freezers fittings
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
Which assets are on lease/HP and with whom?
Are they presently insured?
As this is a white site they are able to buy the petrol at the lowest price available. They have the lowest diesel and gas prices in the area and this attracts a lot of customers. As the supermarket is also not branded they control the prices in the supermarket - not the franchisor.
Owner owns and manages all buildings and businesses. Not enough focus on the petrol station.
Only petrol station on this road that leads to platinum mines and farms. Weigh-bridge being installed is going to attract additional customers specifically truck drivers. One-stop-shop opportunity with petrol, gas, supermarket, liquor store and butchery.
None that can be seen.
What is the reason for the sale?
Owner wants to start down-scaling in the years before retirement.
Why is this a good business?
This is a well established business that has been designed and developed to make the most of all the available trade on the main road. They have solid financial figures available and there is still opportunity to grow.
Price Plus Stock and Nett Profit
Price R8 500 000.00 Stock R700 000.00 Min Nett Profit R165662
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