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Bulk Haulage - Essential Service

Multi Vehicle; Excellent Reputation; Trading Well

$Price on Application - Christchurch

#100820

detail

This business continues to improve, leveraging off a six vehicle and trailer fleet focused on achieving timely haulage of bulk product around the South Island, but with a greater Canterbury focus. There are regular clients within the farming; primary sector and processing industries, and some vehicles are equipped with specialist gear to optimize revenue from these clients.  Annual sales are again on track to exceed $2m + GST.

April to September 2020 sales are up by 2.6% on the same period last year, so the business continues to track well.  The business does very little advertising (not even a website!) with new work being referral and "word of mouth'.  Sales in recent years have been gradually increasing with very impressive double digit returns (as a % of sales) dropping to the bottom line as owner profit.

The trucks / trailers are well maintained and regularly serviced, with a good mix of more recent and older vehicles, with the original cost of the equipment at close to $3 million. Drivers use mobiles although the vehicles also have RT's which can be reactivated if required. The dispatch role is not particularly onerous, and is well served by the owner, who also does some relief driving as required.

With a genuine reason for sale, this business represents an excellent yield for someone who wishes to take on the owner's role. An appropriate transfer period is agreeable, and the buyer will need perhaps $100k or so for working capital over and above the purchase price. There is a strong client-service culture within the business and the new owner will need to relate strongly to both drivers and clients.

The buyer could well be an individual who enjoys servicing the rural and primary sectors or an existing transport company wanting representation with the Canterbury region. The current business runs from a home office, so a buyer based anywhere in greater Canterbury is feasible.

Make substantial returns every month and enjoy an excellent ROI....sure beats money in the bank....

Net Surplus : More details available under confidentiality

Contact: Damien Fahey
Office: Christchurch

Confidentiality Agreement for Business Reference 100820, 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 Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 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. We 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 Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 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.
Mandatory Fields*