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Profitable Well Established Transport Company In Germiston For Sale

Germiston, Gauteng
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This very profitable and reputable Gauteng based transport business has successfully been operated and established in the market place for over twenty years. The business operates on a national basis.

Reason for selling is that the owners have reached retirement.

The business income is mainly derived from being listed as preferred service supplier/operator by a number of large vendors. Collectively, significant income is derived from a well-established customer base, reflecting trust and loyalty for quality services being provided.

Sellers Discretionary Earnings, also known as EBPITD (Earnings before Proprietors Compensation, Interest, Tax and Depreciation) amounts to R524,800 per month resulting in an excellent ROI of 37% and payback of 32 months measured against a high asset base.
Sales have been growing strongly over the years notwithstanding difficult trading conditions in a depressed national economy, reflecting customer satisfaction and loyalty coupled with good controls and efficient fleet utilization strategies.

The asset base is valued at about R11,600m for 22 vehicles, two forklifts and Other/Office Equipment/Small Tools. Vehicles, varying from 5/8/12/14 tonners are being replaced on a regular basis and extremely well maintained on an outsourced basis.

The Gauteng based premises is currently being rented. The day-to-day management of the business is mainly undertaken by the one Gauteng based owner with an Operations Manager and to a lesser extent by the one Cape Town based Seller.

The business can easily be taken over and incorporated with an existing transport business to achieve greater synergies and improved efficiencies. The business is also well suited to benefit from BBBEE owners that will enable other corporate opportunities.

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