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Wholesaler Of Automotive Parts With Excellent Growth Opportunities For Sale

Johannesburg, Gauteng, South Africa
Asking Price:
R15M - R100M Furniture / Fixtures included
Sales Revenue:
R15M - R100M
Cash Flow:
R8M - R15M

This business has been in operation since 1993, and is one of the longest established wholesalers of specialised auto electrical parts. They operate from their own premises in Johannesburg CBD with branches in three other major cities.

They have over 3500 active clients, supplying a wide range of auto electricians, spare-shops, general workshop and transporters. In addition, they supply some of the country's biggest franchised auto spares retailers. They carry a trademarked product that is exclusively distributed through another franchised battery, exhaust and tire retailer. They also have several trade registered brand names, which gives them sole distributorship on these products for Sub-Saharan Africa.

The business carries an extensive stock-holding, valued in the region of R25M, to ensure they are always in a position to supply all client requirements.

They have a strong management team that heavily incentivized to produce sales. Excellent management and control IT systems, developed internally and owned by the business, ensures tight stock control, rotation and virtually zero stock losses.

The business has massive growth potential by the opening of branches in provinces where they are not represented, or franchising to these areas and targetting retail customers positioning them, with the right capital injection, to compete with the major current retailers of automotive parts. In addition, they have a very active customer base that can be exploited by increasing the product offering to include general spares like brake pads, clutches. balljoints, sideshafts etc. The business has sufficient growh potential to be considered for a listing in the future.

The owners of the business both work remotely and spend less than 2 hours a week actively in the office. The day to day running is left to a General Manager and the respective branch managers, all of whom wish to remain on. The owners are open to a complete buyout and remaining on for an agreed handover period, or a leveraged buyout over a period of time during which they will work with investors to exploit the growth opportunities.

The business asking price is a negotiable 4.5 multiple of net verifiable profit excluding VAT, likely to be in the R60m plus range and full financial information will only be provided once an interested party have been fully qualified for suitability and funding availability. The transaction can be zero-rated for tax purposes provided the purchaser is registered for VAT. The stock of approximately R 25m is excluded from the purchase price and final value will be determined during a stock take.

The head office is centrally situated with huge passing trade, especially Sub-Saharan nationals who come and buy in bulk to export to their countries. These premises are also owned and can be purchased in a seperate transaction, or rented from the owner. All other premises are rented by the business.

Property Information

Real Estate:

Lease

Location:

Owned premises and for sale in a separate transaction.

Premises Details:

Downtown CBD with very good cash passing trade.

Business Operation

Reasons for selling:

Owners wishes for a change in lifestyle.

Trading hours:

Mon to Fri 07h00 - 17h00

Employees:
100
Years established:
26

Other Information

Relocatable:
This business can be relocated.

Contact Information

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