Fully describe the business's activities?
Established in 2006, this business has grown from one vehicle to more than 28 in the fleet. it services schools in the Northern suburbs of Johannesburg transporting scholars to and from school in the area with a fleet of vehicles ranging from 7 seaters, 15 seaters and coaches
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business is run from a centralised office dedicated to the successful routing of vehicles, management of staff and dealings with parents and schools
How are the clients attracted to the business?
The business is the preferred supplier of transport services to a number of schools in the area together with agreements with the individual parents, to provide a consistent level of service to parents
What Advertising/Marketing is carried out?
There is a web page plus social media and very strong word of mouth and recommendations by current clients and schools
Does the business have any contract work?
They are the preferred supplier to a number of schools in the catchment area
What competition exists?
There are other transport businesses but this is the largest in the area
What are the seasonal trends?
Is the business VAT Registered?
No, does not need it as scholar transport is exempt
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Cash flow forecast for 2019 to 2020, the seller is only leaving the country in December and is prepared to warrant the profitability to then, provided the business is run in the same way she has been operating it.
What Balance Sheet and Income Statements are available?
Annual financial statements to February 2019
What percentage of the business is cash/credit?
Practically all EFT payments
What is the age analysis of the debtors book?
Total outstanding +- R40 000 included in selling price, minimal bad debts
How could the profitability of the business be improved?
The current owner has been very hands on, and has grown the business gradually, good staff are in place and a new owner could expand operations to other area. They have had enquiries from Pretoria, the Westand, Eastrand and the South of Johannesburg, Durban and Capetown to set up in those areas.
Is Seller finance available and for what amount?
What is the total staff complement?
There are 32 staff including a fleet manager and office staff and supervisor
Are they on contract?
Do any have management potential?
The business can run on it's own but the ideal is an owner operator
How involved is the Owner in running the business?
When does the current lease end?
Operates from an office in Fourways
What are the main assets of the business?
The main assets of the business are vehicles valued at R3.3 million
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
A number of vehicles are on HP and lease, all costs for the vehicles are included in cost of sales
Will Seller settle or Buyer to take over?
Buyer to take over
Are copies of agreements available?
Will be made available
Are they presently insured?
Excellent, organised, profitable business with great growth prospects and high asset base
None known, provided current levels of service and safety are maintained
A new owner has many opportunities to grow this business via expansion in Gauteng and perhaps franchising in other areas together with weekend and after hours transfers
None known as long as service levels are maintained
What is the reason for the sale?
The owner is emigrating to the UK, her husband has already relocated
Why is this a good business?
Long established business currently effecting 700 transfers per day with excellent service and safety record
What is the price plus stock and the profit?
Selling at R6.67million including assets of R3.3 million netting over R2 million EBITDA
Annual Turnover Amount between R 500 thousand and R 6 million