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  • Mandate: 31979
  • Added: 27 Mar 2018
  • AFS
  • 1022

Branded Popular Truck & Mini Bus Automotive Dealership 50% or 100% Equity Buy In

Mpumalanga, Lowveld
Mandate 31979
Added 27 Mar 2018
R 2,200,000* ZAR
Stock: R 0
Assets: R 0
R 84,741 ZAR
Debbie Sardoz
Aldes Lowveld
Mpumalanga, Nelspruit
Mpumalanga, Nelspruit

Increasingly popular branded Truck and Mini bus franchise opportunity for new and used specific branded vehicles. The seller is offering an opportunity to buy into the business either 50% shares or 100% shares.

Branded Popular Truck & Mini Bus Automotive Dealership 50% or 100% Equity Buy In
R 2,200,000* ZAR
Stock: R0
Assets: R0
R 84,741 ZAR

Increasingly popular branded Truck and Mini bus franchise opportunity for new and used specific branded vehicles. The seller is offering an opportunity to buy into the business either 50% shares or 100% shares.

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Fully describe the business's activities?
The business is a franchised truck and mini bus sales and service operator.

How long has the owner had the business?
The current owner of the business has had the business since 2016.

How does the business operate on a daily basis?
The business operates on a daily basis by selling a specific brand of new and used trucks and mini busses. The business operates from prime visible premises in Mpumalanga. The trucks and mini busses are displayed on the premises for sale. The business also undertakes the warranty servicing of the new vehicles which they get reimbursement for from the franchisor. The franchisor supplies the stock to the franchisees on a consignment basis with an undertaking from the owner/ franchisee by them standing surety for 1 million. This is to cover the consignment stock on the floor. The trucks and mini busses compare favorably with their competitors in terms of special features. The brand in relation to its competitors for similar vehicles comes into the market considerably cheaper and the fact that they boast most of the same features is becoming an increasingly popular option to the transport and construction industry. This affordability also lends itself favorably to new entry level entrepreneurs and for existing entrepreneurs adding new units to existing fleets. The dealership undertakes the warranty serving offered by the brand when purchasing a new unit which is undertaken by the seller by out sourcing the labor to an independent esteemed reputable mechanic. The parts that are used and the labor are paid for by the franchisor as part of the warranty, service plan. The servicing that takes place on vehicles not under warranty is paid for by the owners of the vehicles and the same scenario applies the seller outsources the labor but the seller makes money on the parts used for the serving and some on the labor. This parts division is not included in the pricing of the share purchase or the entire equity purchase. This will be a separate negotiation between the parties if the purchaser wishes to come on board with this sector of the business.

What is the total staff complement?
The seller is the main sales man and his wife attends to the admin. Both draw salaries from the business .As the brand and demand for the brand increases in demand due to its feature’s and pricing there is definite need for another salesman to join the seller, however the seller is looking to retire and would prefer to take on a shareholder of full buy out . the seller should he sell 50% equity in the business will remain on actively until such time as the partner purchases his remaining 50% or they employ a suitable representative to join them to market the brand.

When does the current lease end?
The business has a 1 year lease on prime premise’s which it operates from and which is shared by another automotive dealership that does not sell trucks and mini busses. This scenario complements both operators. The business has opportunity to have additional space also in prime premises but due to the owners personal situation he has elected to operate from just the one for the time being. There is option to continue in the current premises for an indefinite period and this can be discussed with the other used vehicles operator.

Overview of the business.
This opportunity be it 50 or 100% equity buy out has huge expansive potential as the brand itself is gaining massive momentum in the new and used vehicle forum due to its competitive pricing for similar features to that of its competitors . The phenomenally ever developing industrial and commercial geographical area in which the brand is operational lends itself favorable for the new and used sales of such vehicles. The seller only managing and marketing the brand in this area since 2016 has developed a good reputable name and repetitive business, along with the servicing support and sales of new and used trucks and mini busses. The brand/ franchisor is supportive and eager to help the franchisee perform. There is no joining fee and there are no royalties paid to the franchisor. The franchisor makes its money from the units the franchisee sells. The franchisee must just sign surety for 1 million and this is to cover the consignment stock that the franchisor provides the franchisees with. The franchisee does not have to purchase the vehicles from the franchisor before they sell them. The platform the seller has established offers itself as an easy user friendly model to any entrepreneur wishing to enter the vehicle sales industry. The seller has created this opportunity through his knowledge of the industry and the competitor’s operational within the industry and the brand has been well received amongst market users of such vehicles .The mini busses have special financing attached to them which is offered to the clients. This will be explained to any financially qualified prospective purchaser once he has expressed and deeper level of interest in the opportunity. The dealership must carry their own insurance for vehicles provided on consignment from the franchisor. The owner is wishing to sell as he is downscaling towards retirement. He will train the purchaser in all aspects of the business this is a recommended fantastic opportunity. The asking price for a 50% buy in is R 1,200, 000 (one million two hundred thousand rand) and for 100% equity buy in R 2, 100, 000 (two million one hundred thousand rand)

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Aldes Lowveld

1 members
25 active mandates
Mpumalanga , Nelspruit
7 Jakkalsbessie Street, West Acers

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