"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The business service offering includes bulk transport from major refineries and petroleum depots to customer sites and small-scale product drops from the business depot to customers. The business refuels generators, and this service is aimed at users of larger scale generators that need refuelling after and during use. Delivery size is between 200 and 1000 litre. The depot is also located on a busy route for mining and delivery vehicles.
How long has the business been established?
2015
How long has the owner had the business?
2015
How does the business operate on a daily basis?
.
How are the clients attracted to the business?
Website and Word of Mouth
What Advertising/Marketing is carried out?
Website
What are the seasonal trends?
Low sales during the months of December and January
What is the monthly litres?
500,000-800,000 litres per month
Is the business VAT Registered?
Yes, will be disclosed during due diligence.
What VAT documentation is on file?
Yes, will be disclosed during due diligence.
Are there up-to-date Management Accounts available?
Yes, will be disclosed during due diligence.
What Balance Sheet and Income Statements are available?
Yes, will be disclosed during due diligence
What percentage of the business is cash/credit?
100% cash
How could the profitability of the business be improved?
Increase marketing
What is the total staff complement?
2x Office staff
5x Manuel workers pumping the diesel for clients.
Are they on contract?
Yes all on contract
How involved is the Owner in running the business?
100% involved
When does the current lease end?
10 year lease in place with 9 years remaining.
What are the trading hours?
Monday to Saturday 24 hours
Closed Sundays
Is a copy of the lease available?
Yes, will be disclosed during due diligence
Do you require a licence?
Yes, wholesale license needs to be applied for by the new owner. The seller will assist the new owner with the process and costs, this will be a condition of the sale.
What are the main assets of the business?
Vehicles
Office equipment
Are any items not included in the sale?
Owners personal vehicle
What is their overall condition?
All in good working condition
Which assets are on lease/HP and with whom?
3 storage tanks are on HP, the monthly costs equal R12,000.
1x 46,000 litre tank
2 x 23,000 litre tanks
Will Seller settle or Buyer to take over?
Buyer to take over
Are they presently insured?
Yes, will be disclosed during due diligence
Strengths?
South Africa has a limited rail network, which means that most goods are transported by road. This creates a high demand for diesel fuel and makes a diesel depot business an essential part of the country's logistics infrastructure.
Weaknesses?
The price of diesel is determined by global markets and is subject to fluctuations, which can affect the profitability of the business. The business may be vulnerable to changes in oil prices, and this could affect its profitability.
Opportunities?
The business can also explore opportunities to diversify its offerings beyond diesel fuel, such as lubricants, oils, and other related products, to increase revenue streams. The business can explore forming strategic partnerships with other companies, such as logistics or transportation firms, to provide a complete solution for their fuel needs.
Threats?
Fluctuations in the economy, including changes in the exchange rate, interest rates, inflation, and overall economic growth can significantly impact the profitability of diesel depot businesses.
What is the reason for the sale?
The seller wants to pursue other business opportunities
Why is this a good business?
The business offers a high barrier to entry for competitors, demand for refuelling generators has increased substantially in South-Africa
Annual Turnover Amount between R 500 thousand and R 6 million
