Fully describe the business's activities?
An Independant clearing, forwarding and transport company offering an extensive range of services to the Airfreight, Sea Freight and Road Freight industry.
How long has the business been established?
Since January 2005.
How does the business operate on a daily basis?
Several systems have been implemented and when followed, the operations run smoothly and efficiently, training manuals are in place, so even new staff catch on quickly. ActionCoach Business Coaching has been a partner for 8 years and is a tremendous influence on year on year improvements in systems and methods.
What Advertising/Marketing is carried out?
Comprehensive Marketing Strategy is in place making use of digital, social and print media as well as branding of vehicles, uniforms and promotional items are done annually.Networking initiatives are undertaken as well as being registered with Durban Chamber.
Does the business have any contract work?
Most clients have been with the company for years and the business is an approved vendor, usually with positions 1,2, and 3.
What competition exists?
Ample, however the business is well positioned with other clearing agents to supply them with ample transporters therefore no limitation of vehicles.
What are the seasonal trends?
Dec- Feb (low), Mar April May (high), June July Aug (mid-season),Sept Oct Nov (Peak season).
Is the business VAT Registered?
What VAT documentation is on file?
Up to date information is available.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Current & Previous 10 years.
What percentage of the business is cash/credit?
100% of transport on credit, usually 30 days from statement. 90% of the clearing is cash upfront.
How could the profitability of the business be improved?
There is opportunity for growth, especially in the break bulk and cross border markets. Business focussed on containers as it was the owners strength.
What is the total staff complement?
5 staff members.
Give a breakdown of staff/ functions/ length of service?
Operations Staff have been with the company for over 10 years.
Do any receive special perks or incentives?
Car allowance and cell phone allowance.
Are they on contract?
Do any have management potential?
Certain staff members are fully capable of managing the business with minimal supervision.
How involved is the Owner in running the business?
Owner is actively involved in the strategic decision making and manages the Financial Function of the business.
When does the current lease end?
Business is housed in its own moveable container office (MProjects).
What are the trading hours?
07.30am â 4.30 pm.
What is the square meters of the business?
36m2 with parking for 4 vehicles.
What are the main assets of the business?
Asset List will be provided.
What is their overall condition?
Bakkies are old, but run well. Polo is 5 years old but in excellent condition. Laptops are more than 3 years old but still operational. Servers and cameras and computer equipment are 3 years old, can be improved but not a necessity. Generator is attached to the main power source and operational, and the office has a 1 hour backup power source, which can run internet, switchboard, servers etc.
The business is not a traditional logistics company in that it has no limitations of the number of trucks that can be accessed on a given day, therefore the market is as large as the number of trucks you have available for a given day. All clients are vetted by CGIC therefore which has managed to significantly reduce the debt. All staff are well trained and excellent customer service is key to the success of this business
The business lacks a consistent marketing system, a more aggressive marketing Strategy can be implemented and focus on online marketing can allow for access to new markets instantly.
The opportunities are plentiful as the business has not yer secured the right partners in the break bulk and cross border sectors. Market share can be increased and through proper Client Management techniques, the business can secure bigger volumes of work with existing clients
No threats perceived.
What is the reason for the sale?
Owner is immigrating.
Why is this a good business?
This is an excellent business if managed right can be a cash cow. The business has a solid reputation and is well known for its excellent customer service and knowledgable staff. The business can run without much supervision from the Owner and can play a very strategic role.
What is the price plus stock and the net profit?
Selling Price: R2 900 000. Net profit per Month: R92 500.
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