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'Last Mile' Transport

Call Cycle; B2B; Niche Market

$1,000,000 including stock and plant - Christchurch

#L001734

detail

The Business

This business consistently generates $1.1m +GST in sales with a significant percentage falling to the bottom line. With the founder focused on other ventures, the business has been largely left to self manage recently, leaving clear opportunities for both revenue and profit growth.

Core clients have been with the business for many years and the goods carried, whilst slightly niche in nature, are firmly within the FMCG category. The model is straightforward and requires no specific technical skills, and a new owner can choose their level of involvement, noting that the stated EBITDA fiqure is after paying circa $80k to a full time working owner.

Clients

The clients, routes and destinations supplied have all been with this business for many years and customers include distribution centres, national carriers and manufacturers/brand owners. There are good barriers to entry and excellent opportunities to expand the business if desired.

Staff and Assets

There are very experienced and extremely capable drivers on the team, albeit the opportunity exists for a new owner to take on a driving role - or utilise another experienced individual who may become available. A part time administrator completes the team, who can be retained, or this role filled by a new owner who chooses not to drive. The rolling stock has been well maintained and is in perfect running order, with a market value of circa $250k, and the specialised facilities within the yard/warehouse will be available to a new owner if they desire.

The Buyer

There is no specialist skill required here. The existing team largely excel and there is room for the new owner to take a driving role or a support and business development role. If a buyer only wants to spend a few hours per week in the business, that is possible also, but some transport/freight background would be useful.

First time on the market - this is a high quality business only available due to our vendor's other priorities!

Net Surplus EBITDA $409,460

Contact: Damien Fahey
Office: Christchurch

Confidentiality Agreement for Business Reference L001734, Broker Name Damien Fahey

Between Tabak Business Sales and the Interested Party.  The Interested Party must be an individual's name, NOT a company name.

In consideration of Tabak Business Sales (being any or all of Tabak Limited (Licensed under REAA 2008) and/or Tabak Business Sales Limited (Licensed under REAA 2008) and their respective business brokers) entering into discussions relating to the possible acquisition of the assets or shares of any business(es) presented to me by Tabak Business Sales and specifically the business referenced above, I/We hereby agree and undertake as follows:

  1. To treat as totally confidential the identity of the business(es) disclosed to me and any details as to its operation or financial accounts;
  2. I acknowledge that the financial records, customer and supplier details and other information relating to the business to be disclosed to me shall at all times remain the sole and exclusive property of the Vendor and that such information is of competitive value and of a confidential nature and that loss or damage would be sustained by the Vendor if such information should be used or divulged by me for any purpose other than the evaluation of the purchase of the business or should it become into the possession of an unauthorised third party;
  3. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorised in writing by the Vendor or by Tabak Business Sales;
  4. Not to make an approach to the Vendor of any business disclosed to me by Tabak Business Sales, or the business' staff, customers or suppliers without prior arrangement with Tabak Business Sales and to refer all queries through Tabak Business Sales;
  5. I acknowledge that Tabak Business Sales is the introducing agent, and that all offers and deposits for the business, shares or property will be conducted through that office;
  6. If, I as a potential buyer breach clause 4 of this agreement and buy directly or indirectly this business from the Vendor of the business quoted then I the buyer will be responsible for any loss of commission due to Tabak Limited (Licensed under REAA 2008) and/or Tabak Business Sales Limited (Licensed under REAA 2008) as the case may be;
  7. If, I as a potential buyer breach clause 1, 2 or 3 of this agreement I undertake to indemnify Tabak Business Sales against any actions, proceedings, costs, claims, demands or liabilities which you may suffer in consequence of that breach;
  8. That all information is received for no other purpose than the evaluation of the investment potential of the business;
  9. If I decide not to proceed with the investment, I agree to immediately return to Tabak Business Sales all written information supplied by it and retain no copies and to delete any electronic records including all emails and attachments relating to the business(es);
  10. Acceptance by Electronic Mail: Execution of this Agreement and transmission between the parties by electronic signature and email response each to the other or their representative will constitute offer and acceptance and satisfy the requirements of Section 5 of the Electronic Transactions Act 2002.
  11. Privity: For the purposes of Part 2, Subpart 1 of the Contract and Commercial Law Act 2017, the parties acknowledge and agree that the agreements and undertakings given by the recipient in this Confidentiality Agreement are given for the benefit of the Vendor and its related companies and representatives, and are enforceable at the suit of all or any of them.

Before proceeding with this Confidentiality Agreement, it is recommended that any prospective purchaser

  1. seeks legal advice.
  2. may or may need to seek technical or other advice and information.
  3. review Tabak Business Sales’ internal process in relation to any complaints.  A copy of these can be found here.
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